Australian savings rates reach 6% as banks compete for deposits

Some Australian savings accounts now offer interest rates of 6% if customers meet certain conditions.

Bank of Queensland and Newcastle Permanent have each reached that level with accounts for younger savers.

The article says deposit rates could rise further as banks compete for customers’ cash.

Over the past year, nationwide cash savings increased by 7% to $120 billion, the biggest rise since the Covid period.

Macquarie has gained household deposit market share, though Commonwealth Bank remains much larger.

Some accounts limit the balance that earns the top rate, so savers may receive less interest on larger deposits.

Cash exchange-traded funds are another option, but unlike bank deposits, they are not government-guaranteed.

Macquarie says it will raise some savings rates on October 15, with different increases depending on the account balance.