Australians looking to get the most out of their savings accounts are finally in luck as two banks have moved to raise the Reserve Bank rate hike on their savings accounts.
The Big Four banks have passed the rate hike on to mortgage customers in full, but the good news is that some banks are setting a new standard and are passing the rate hike on to savings customers as well.
Macquarie and ING have raised interest rates on their trading and savings accounts in what finance experts are calling a big “win for savers”.
Macquarie will raise the interest rate on its transaction account from 0.2% to 1.5% on balances up to $250,000 from June 17.
This is a substantial increase for savers, as the highest rate from a major bank on a transaction account is 0.02% ANZ on balances over $100,000.
Meanwhile, ING is also raising its interest rate on the Savings Maximiser account by 75 basis points to 2.10% on balances up to $100,000 from June 15.
ING did not pass on the RBA rate hike in May, which contributed to this big change.
Commonwealth Bank will pass the full 0.5% rate hike through to its GoalSaver and Youthsaver accounts from June 17.
So what does this mean for you?
RateCity.com.au’s research director, Sally Tindall, said it was a sign banks were set to “up the ante” on savings account returns for Australians.
“Finally, we have evidence that competition in the savings industry is not dead and buried,” she said.
“ING and Macquarie have reset the savings rate battleground in what is ultimately a victory for savers.”
She added that this will put pressure on other big banks like Westpac, NAB and ANZ to pass on the rate hike to saving customers.
In terms of main transaction accounts, data from RateCity showed that Commonwealth and Westpac offer no interest on their main bank accounts, but NAB and ANZ offer 0.01% and 0.02% respectively.
Macquarie’s decision to pass on interest rate hikes to major bank accounts is a “game changer”, Tindall added.
This means customers will be able to get more for the hard-earned money they save.
Tindall suggested now was the time to “shop around” for the best deals at banks for savings accounts.
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