Online saver accounts still above 6 per cent

21/03/2011

Savers need to pay attention to the base rates being offered on high-yield online savings accounts and not just the intro rates. Once the intro rate is over, renegotiate another intro rate or be prepared to move elsewhere. Virgin Money launched an online savings account in July, with an introductory rate of 6.75 per cent for four months.

That rate has dropped to 6.51 per cent. The base rate remains unchanged at 5.35 per cent. Virgin's intro rate now matches UBank's offer of 6.51 per cent for customers who make regular monthly savings. The UBank base rate is 6.01 per cent. RaboDirect set a 6.4 per cent introductory rate on its online High Interest Savings account. That rate has now dropped to its base rate of 6 per cent on the first $200,000. Rabo also has a PremiumSaver account, offering 6.1 per cent if the account holder deposits a minimum of $200 a month (the base rate is 4.75 per cent).

Citibank has maintained an introductory rate of 6.45 per cent (with a base rate of 5.25 per cent). CUA has a base rate of 5.15 per cent. Hunter United has a base rate of 6.27 per cent. ING Direct has a four-month intro rate of 6.35 per cent and a base rate of 5 per cent. Others offering more than 6 per cent include Defcredit, ANZ, Bank of Queensland, Bankwest, Bankstown City Credit Union, St George Bank and Easy Street.

Source: Sydney Morning Herald