The RBA is expected to once again lift the official cash rate, and while any increase would likely be passed on in full to mortgage holders, it's a different story when it comes to savings accounts.
As the cash rate has grown, Australia's big four banks — the Commonwealth Bank, Westpac, ANZ, and NAB —Australia's big four banks have been selective when it comes to rewarding depositors amid rate hikes.An analysis by financial comparison site RateCity has found that the Commonwealth Bank's GoalSaver, Westpac's Life account, and NAB's Reward Saver offer savings accounts with rates of at least 3.25 per cent. ANZ's Progress Saver offers a rate of 2.5 per cent.
The Commonwealth Bank's NetBank Saver offers new customers 4 per cent for five months before it falls to 1.6 per cent, while Westpac's eSaver has a 3.75 per cent introductory rate that drops to 0.85 per cent after the same period. These "hoops" can vary, Ms Tindall said. In order to qualify for a higher rate, some banks may set conditions that include, among others, a requirement to deposit a certain amount each month and make no withdrawals.But there are savings accounts that come with fewer hurdles. Ms Tindall pointed to ANZ's Plus Save, which has a 3.75 per cent interest rate and "no onerous monthly terms and conditions" — although it is a digital-only product.
"Ultimately, we think the governor is attempting to balance cooling growth against uncomfortably high inflation and the risk of a break-out in wages and inflation expectations," he said.
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