Business · Economy · 8 hrs ago
Many Australian savers miss out as banks raise savings rates
After the latest Reserve Bank of Australia rate increase, the big four banks raised rates on selected savings accounts by 0.20 or 0.25 percentage points.
The banks are Commonwealth Bank, NAB, ANZ and Westpac, and the higher rates often come with conditions such as making a minimum monthly deposit.
More than 70 per cent of customers did not meet monthly conditions in a 2023 regulator inquiry.
Customers who miss the rules can fall back to a base interest rate of 0.10 per cent, while some accounts pay no interest.
As of June, Commonwealth Bank held nearly $122 billion in no-interest accounts; Westpac, NAB and ANZ held about $82 billion, $67 billion and $61 billion respectively in the periods reported.
Billions of dollars are earning no interest, meaning customers may not benefit from rate rises or protect their savings from inflation as much as they could.
Canstar says banks could warn customers when they are close to missing account conditions, and savers can compare accounts if they are unhappy with their current arrangements.
Major Australian banks raised some savings rates after the latest Reserve Bank interest rate increase, but many savers may not receive the higher rates.
Canstar found the increases applied only to selected savings products, often with conditions customers must meet.
The competition regulator found that more than 70 per cent of customers did not meet monthly conditions in a 2023 inquiry.
The four major banks also held hundreds of billions of dollars in customer accounts earning no interest.
Canstar’s Sally Tindall urged banks to warn customers when they are at risk of missing account conditions.
- Who
- Savers with money in Australian banks, including customers of the Commonwealth Bank, NAB, ANZ and Westpac.
- What
- Some savers may miss out on higher interest rates because they do not meet account conditions or hold accounts that pay no interest.
- When
- After the latest RBA interest rate increase; the article was published on October 31, 2026.
- Where
- Australia.
- Why
- Rate rises applied only to selected savings products, and some required customers to meet conditions such as making a minimum monthly deposit.
Consumer advocates
Australian Banking Association
Account conditions
Consumer advocates
Sally Tindall said many customers miss out because they do not meet account terms and conditions.
Australian Banking Association
The association said banks support customers to get the most out of their savings, including through app alerts and messages.
Customer alerts
Consumer advocates
Tindall said banks could send proactive email or text alerts near the end of the month to warn customers they may not meet conditions.
Australian Banking Association
The association said banks already support customers with alerts and messages.
The competition regulator found that more than 70 per cent of customers never met monthly conditions in a retail deposits inquiry.
The major banks increased mortgage interest rates after the rate hike.
The Commonwealth Bank, NAB, ANZ and Westpac each increased their maximum savings rates by 0.20 or 0.25 percentage points.
ABC Australia published its report on savers missing out on higher rates.
- Major banks
- Commonwealth Bank, NAB, ANZ and Westpac
- Savings rate increases
- 0.20 or 0.25 percentage points
- Customers missing conditions
- More than 70 per cent, according to the 2023 regulator inquiry
- Commonwealth Bank funds earning no interest
- Nearly $122 billion as of June
- Westpac funds earning no interest
- Nearly $82 billion as of March
- NAB and ANZ funds earning no interest
- About $67 billion and $61 billion, respectively, for the same period
What people are saying
Many customers will miss out, at least from time to time, because they don't meet those terms and conditions,
Alerting people with a proactive email or text message … close to the end of the month, that tells you if you're not going to meet those terms and conditions,
It's just reassuring to know that you've got that interest coming into your savings account to top it up and act as that buffer, and you're not going backwards as much,
Australia's savings market …