Good news: now your savings can earn up to 2.5% | The Really Simple Guide To Money

Now the good news – while mortgage holders have been in agony over the giant rate hikes of the past eight weeks, banks have started to allow savings rates to climb.

The Commonwealth Bank said that interest on its GoalSaver will increase to 1.25 per cent, YouthSaver to 1.45 per cent including bonus interest on all these accounts.

The bank is also introducing a new 15-month term deposit special offer of 2.50 per cent.

ANZ matched the 2.5 per cent rate but lowered the term to 11 months. NAB said its 12-month term deposit would pay 2.5 per cent.

But the standout was Macquarie, which offered 2.4 per cent for six months, 2.7 per cent for nine months and 3.25 per cent for 12 month TDs.

Twenty banks offered 2.5 per cent interest for term deposits with even lower durations than CBA’s 15-months.

According to Canstar, the big four banks have all announced special rates on select term deposits, following the Reserve Bank’s  recent cash rate hikes:

• ANZ is offering a 2.25% interest rate for its 11-month Advance Notice term deposits.
• CBA is offering a 2.25% special offer for its 18-month term deposits.
• NAB is offering a 2.25% special offer for its 12-month term deposits.
• Westpac is offering a 2.25% offer for 12- to 23-month term deposits.

Term deposit rates from the big four banks – July 2022

This Canstar table is based on an investment of $50,000 in a personal, non-compounding deposit with any payment frequency.

Highest term deposit rates from the major banks

Source: Canstar, 5/7/2022. Further terms and conditions may apply, so make sure to check with the individual bank for more information. 

Outside the Big Four…