Savings Account Update: Savers are fleeing big bank rate cuts

Do you know your savings account rate? The interest rate that your savings account pays you determines how much you will earn each month and year from depositing your money in the bank.

Right now, CPI inflation in Australia is 1.8% per annum according to the Reserve Bank, so if you are not earning 1.8% on your savings, your money is effectively losing value over time.

New online neobanks are grabbing thousands of new customers as the big four banks continue to slice their maximum bonus rates on their savings accounts.

Xinja Bank has collected more than 15,000 new customers since launching in January and more than $100m in deposits. Check out the Xinja Bank Stash account.

Here are the current savings account rates as offered by the big four banks in Australia:

Big four bank at-call savings rates 27 February 2020:

Go directly to ANZ Online Saver interest rates and fees information at InfoChoice.

Go directly to ANZ Progress Saver interest rates and fees information at InfoChoice.

Go directly to ANZ Bank interest rates and fees information at InfoChoice.

Go directly to NAB iSaver interest rates and fees information at InfoChoice.

Go directly to NAB Reward Saver interest rates and fees information at InfoChoice.

Go directly to National Australia Bank interest rates and fees information at InfoChoice.

Go directly to Westpac eSaver interest rates and fees information at InfoChoice.

Go directly to Westpac Life interest rates and fees information at InfoChoice.

Go directly to Westpac Bank interest rates and fees information at InfoChoice.

Go directly to CommBank GoalSaver interest rates and fees information at InfoChoice.

Go directly to CommBank Netbank Saver interest rates and fees information at InfoChoice.

Go directly to Commonwealth Bank interest rates and fees information at InfoChoice.

Savers are comparing and switching to better rates

Savers who compare savings account rates are finding the best rates in the market now are over 2.0% pa, well ahead of inflation at 1.8%. Some of the best savings interest rates in March in Australia are in our Editor’s Pick of savings rates:

ME’s Online Savings Account (with ongoing bonus) is currently featuring a base rate of 0.35% pa and a maximum bonus rate of 2.05% pa.

The bonus rate is paid to you when you have a ME Everyday Transaction Account and make at least four tap & go purchases with your debit Mastercard during the month.

Go directly to ME Online Savings Account interest rates and fees information at InfoChoice.

Go directly to ME interest rates and fees information at InfoChoice.

RaboBank’s Online High Interest Savings Account has a base rate of 1.05% pa and a maximum bonus rate of 2.50% pa for the first four months.

Go directly to Rabobank High Interest Online Savings Account interest rates and fees information at InfoChoice.

Go directly to Rabobank interest rates and fees information at InfoChoice.

Bankwest’s Hero Saver account has a maximum bonus rate of 1.85% pa (base rate is 0.01% pa), when you deposit at least $200 and make no withdrawals during the month.

Go directly to Bankwest Hero Account interest rates and fees information at InfoChoice.

Go directly to Bankwest interest rates and fees information at InfoChoice.

Compare savings accounts and term deposits at InfoChoice

The products compared in this article are chosen from a range of offers available to us and are not representative of all the products available in the market and influenced by a range of factors including interest rates, product costs and commercial and sponsorship arrangements

InfoChoice compares financial products from 145 banks, credit unions and other financial institutions in Australia. InfoChoice does not compare every product in the market. Some institutions may have a commercial partnership with InfoChoice. Rates are provided by partners and taken from financial institutions websites. We believe all information to be accurate on the date published. InfoChoice strives to update and keep information as accurate as possible.

The information contained on this web site is general in nature and does not take into account your personal situation. Do not interpret the listing order as an endorsement or recommendation from us.  You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. If you or someone you know is in financial stress, contact the National Debt Helpline on 1800 007 007.

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