Neobanks are saving the day for savers

MEDIA RELEASE 20 October 2019

New online only banks are offering market-leading savings rates as the established banks and credit unions cut savings accounts and term deposits to around or under the inflation rate of 1.6 per cent.

One Neobank – Judo Bank – has jumped well clear in the $1,000 term deposit market in the popular 6-month, 12-month and 2-year categories.

UP, RAMS, Rabobank and UBank are leading the market in at-call savings account rates.

“Judo Bank’s rate for a $1,000 deposit is now set at 2.15 per cent pa, 0.25% ahead of the next highest $1k, 12m rate of 1.90% from Arab Bank Australia,” said Vadim Taube, CEO of leading Australian comparison website InfoChoice.com.au.

“In the next most popular term deposit category – the 6-month terms – Judo is also way ahead with 2.35 per cent pa.

“The online banks make applying for new accounts much easier and much online.

“You need your photo ID, Medicare card, tax file number and you can grab a great, government- guaranteed deposit from an online bank,” said Vadim Taube.

At-call savings accounts, ongoing bonus rates listed on InfoChoice 20/10/19

*excluding introductory rate accounts, youth and children’s accounts and specialist accounts

All four big banks and many smaller banks and other institutions have passed on the full RBA October rate cut of 0.25 percentage points to their savings account customers.

Big four bank Savings Account rates 20/10/2019

* The GoalSaver headline rate of 1.60 per cent pa only applies to the portion of the balance over $250,000.

Vadim Taube said Commonwealth Bank’s headline savings account rate of 1.6 per cent pa only applies for balances over the government guaranteed threshold level of $250,000.

“For balances under $250,000, the highest maximum ongoing at-call savings account rate now offered by the Commonwealth Bank is 1.25 per cent pa.

“The Australian inflation rate is now 1.6 per cent so that is the absolute minimum savers should be looking for in a savings account or term deposit rate.”

Go straight to the latest rates information from individual banks and other institutions here.

For more information on Savings account rates, data and commentary, please contact:

Jason Bryce, Media Manager on 0428 777 727 jason.bryce@infochoice.com.au

For more comments, please contact: Vadim Taube, Chief Executive on 0403 580 794

Keep up to date with the latest RBA rates outlook at InfoChoice.

* 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.

Comparison rate is based on a secured loan of $150,000 over the term of 25 years. WARNING: These comparison rates apply only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and costs savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan

InfoChoice is a leading Australian comparison website for retail banking and personal finance products. We’ve been helping Aussies find great offers on credit cards, home loans, savings accounts, term deposits, personal loans and car loans for over 25 years. Our mission is to help consumers make an informed purchasing by bringing together the most comprehensive list of financial products on the market today.

At InfoChoice, we strive to be:

• Comprehensive. We compare more than 3500 individual products from 145 providers within Australia to offer you the best value.

• Informative. We know how important it is for you to crunch the numbers before buying. Our calculators help you understand the cost of different products over the long term and show you the potential savings.

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