Australia’s big four banks have been quick to pass on the Reserve Bank of Australia’s 25 basis point rate hike in full to their variable mortgage customers.
CBA also announced it will increase the interest rates across all of its key savings accounts, NetBank Saver, GoalSaver and YouthSaver, by at least 0.25 per cent.
ANZ will increase the rate on its Plus Save account to 3.25 per cent and Westpac will increase its bonus saver rates for adults and young adults and the intro rate on its eSaver.
But existing Westpac eSaver clients will miss out and the NAB, at this stage, has not announced any rises for its savers.
CBA Group Executive, Retail Banking, Angus Sullivan said it is clear customers are feeling the impact of rising cost of living and the impact of higher interest rates on their home loan repayments.
“We are committed to helping our customers navigate the current environment, including through further increases to the interest rates across a number of our deposit products such as increasing our 18-month Term Deposit special to 3.70 per cent per annum,” Mr Sullivan said.
RateCity.com.au Research Director, Sally Tindall said CBA had done a good job of helping savers by passing on the rate increase.
“CBA has done right by its savings customers this month, hiking rates across the board, in many cases above what the RBA has prescribed,” Ms Tindall said.
“CBA has stepped up for its existing customers, but is also in the market for new ones.
“The bank has hiked the introductory rate on its Netbank Saver by a mammoth 0.70 percentage points, to a maximum of 3 per cent. While this rate only lasts for five months, it’s likely to get more deposits in the door.”
Ms Tindall said while CBA has made a good start on savings rates, there’s still more work for the bank to do.
“For two months in a row, CBA has increased some savings rates by more than the RBA hikes but even after this, most of their savings accounts fall short of the current cash rate,” she said.
Meanwhile, Macquarie Bank has also gone above and beyond the RBA’s hike for its savers.
The bank has committed to increasing the ongoing rate on both its transaction and savings accounts by 0.45 percentage points to 3.20 per cent, effective from October 14.
The introductory rate on its saving account will rise to 4 per cent for the first four months from October 6.
Macquarie will also increase its variable home loan rates by 0.25 percentage points, effective October 15.
“Macquarie Bank has also put sizeable hikes on the table for its savers this month,” Ms Tindall said.
“Customers will soon earn ongoing rates of up to 3.20 per cent on their transaction and savings accounts, while new savers can get rates as high as 4 per cent in the first four months of joining.
“Let’s hope these solid savings announcements from CBA and Macquarie push ANZ and NAB, in particular, back to the drawing board to re-think their rate decisions.
“ANZ has decided to hike its new Plus Save account, to a competitive 3.25 per cent, however, the bank has once again failed to pass on any hikes to its two main savings accounts, at this stage.”
