Australians looking to make the most of their savings accounts are finally in luck, as two banks have decided to increase the Reserve Bank rate hike in their savings accounts.
The four major banks passed the rate hike in full to home loan customers, but the good news is that some banks are setting a new standard and are passing the rate hike to savings customers as well.
Macquarie Bank and ING have passed rate hikes on transaction and savings accounts. (Supplied)
Macquarie and ING have raised interest rates on their savings and transaction accounts, which finance experts call a big “gain for savers.”
Macquarie will raise its transaction account interest rate from 0.2% to 1.5% on balances of up to $ 250,000 starting June 17.
This is a substantial increase for savers, as the highest rate for a four-grain bank in a transaction account is 0.02% ANZ on balances in excess of $ 100,000.
Meanwhile, ING is also raising its interest rate on the Savings Maximiser account by 75 basis points to 2.10 percent on balances of up to $ 100,000 as of June 15th.
ING did not pass on the RBA rate hike in May which has contributed to this big change.
Commonwealth Bank will transfer the 0.5% total rate hike to its GoalSaver and Youthsaver accounts starting June 17th.
The RBA raised interest rates to 0.85 percent earlier this week. (9 News)
So what does this mean for you?
RateCity.com.au research director Sally Tindall said it was a sign that banks were making a move to “raise the stakes” on the return of Australians’ savings accounts.
“Finally, we have some evidence that competition in the savings sector is not dead and buried,” he said.
“ING and Macquarie have re-established the battlefield for savings rates in what is ultimately a victory for savers.”
He added that this will put pressure on other major banks such as Westpac, NAB and ANZ to pass on the rate hike to savings customers.
In terms of major transaction accounts, RateCity data showed that Commonwealth and Westpac offer no interest in their main bank accounts, but NAB and ANZ offer 0.01 percent and 0.02 percent, respectively. .
Macquarie’s decision to pass on interest rate hikes to major bank accounts is a “changer,” Tindall added.
It means that customers will be able to recoup more money for the money they are saving.
Tindall suggested that now is the time to “buy” for the best deals from banks for savings accounts.
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