Two of Australia’s major banks, Commonwealth Bank and Westpac, have increased interest rates on selected savings accounts by 0.25 per cent following the recent cash rate hike, while also raising home loan rates. Several smaller banks have also passed on the increase to savers.
However, financial comparison group Canstar noted that many customers may not benefit from the higher bonus rates, as they often fail to meet the required conditions. A survey of more than 1,000 Australians found that 41 per cent of savers with bonus interest accounts do not meet the criteria each month, including 11 per cent who say they never qualify for the maximum rate.
Bonus interest rates are often significantly higher than standard rates. For example, Commonwealth Bank’s Goal Saver account offers up to 4.50 per cent bonus interest, compared to just 0.25 per cent standard interest. Conditions for earning bonus interest may include making regular deposits, increasing the account balance or avoiding withdrawals.
Canstar’s data insights director Sally Tindall said the higher rates would benefit engaged savers but warned that failing to meet monthly conditions could result in significantly lower returns. She also highlighted that while new Commonwealth Bank NetBank Saver customers may receive a promotional rate of 4.70 per cent for five months, existing customers will see only a modest increase, and some Westpac online saver rates for existing customers remain unchanged.
She stressed that savers should carefully read the terms and conditions of their accounts and review them regularly. With top savings rates approaching 5 per cent again, customers are encouraged to compare options and consider switching accounts if they are not receiving competitive returns.
