Called the Target Saver, the rate applies across the group (TMBL) including Teachers Mutual Bank, UniBank, Firefighters Mutual, Health Professionals, and Hiver.
To attain the full rate, there is a $1,000 minimum monthly deposit required - savers also can't make any withdrawals and must have a positive balance at all times.
Should savers fail to meet this criteria in a given month the base rate of 0.01% p.a. applies.
Notably, the account features a maximum balance of $5 million; 5.50% p.a. at $5 million accrues $275,000 per year.
This would then attract the top marginal income tax rate of 45% and assuming no other income is earned would result in a net $180,583.
Deposits are backed by the federal government guarantee up to $250,000.
This account is outdone only by ME Bank's top rate of 5.65% p.a. available on its HomeME product, available exclusively on the 'ME Go' app, according to InfoChoice's product database.
It's also outdone by Macquarie Bank's 5.55% p.a. but that applies only for four months.
TMBL's move is also notable in that it happened in a non-RBA hiking month, while many of its top-rate contemporaries last increased in June.
As of June 2023 TMBL is the fifth-largest customer-owned bank in Australia, according to APRA data, with more than $10.7 billion in residents' assets.
Savings Account Leaderboard: 8 August 2023
|Bank||Top Rate % Per Annum||Conditions|
|ME Bank||5.65||Deposit $2k/month into transaction account, grow balance, maximum balance $100k|
|Macquarie Bank||5.55||Four-month fixed intro rate, max balance $250k|
|Teachers Mutual||5.50||Deposit $1k/month, no withdrawals|
|ING||5.50||Deposit $1k/month, grow balance, 5 card transactions, max balance $100k|
|RaboBank||5.50||Four-month variable intro rate, max balance $250k|
|Bank of Queensland||5.50||Ages 14-35, deposit $1k/month, 5 card transactions, max balance $50k|
|Move Bank||5.50||Deposit $200/month, maximum balance $25k, no withdrawals|
Source: InfoChoice Product Database