ING, Ubank raise savings rates above 6% – but there’s a catch
Key takeaways
- Interest rates on savings accounts are going up after the RBA hiked the cash rate on Tuesday.
- So far, ING and Ubank are the first two banks in Australia to offer savings 4-month intro rates above 6%.
- What's next: No bank is currently offering an ongoing rate above 6%, although this could change soon.
The Reserve Bank raised the cash rate to the 15-year high of 4.60% earlier this week. While this is bad news for borrowers, it does mean that interest rates on savings accounts are going up too.
Ubank and ING were the first to announce they are taking interest rates on some of their savings accounts above 6%, but only as four-month special intro rates.
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ING's Savings Booster hits 6.25%
From 9 October the ING Savings Booster will have a total introductory rate of 6.25% for the first four months on balances of up to $500,000. That's for new customers only.
After the introductory period, savers will earn 5.65%. That's also the rate existing ING customers will get.
This is, right now, the highest savings rate in Australia, even if it's only for four months.
Ubank offers 6.10%
Ubank is also passing the RBA rate hike on in full. The four-month welcome rate on its Save account will now be 6.10% for eligible new customers, and the ongoing Save rate will jump to 5.35%.
Both rates are available on balances of up to $1 million.
Do any banks have ongoing rates as high as 6%?
The highest savings rates on the market are usually only for four months before reverting to a lower rate.
Right now, the highest ongoing rates (that stay the same month after month) are between 5.50% and 5.75%.
No bank has currently announced an ongoing rate as high as 6%, but we're getting close.
The Westpac Life (18-40 year olds only) account will hit 5.95% on 9 October. That's only for savers aged 18 to 40, and on balances of up to $150,000. You have to meet a few conditions to get this rate, but if you're the right age it's a really high rate.
ING's Savings Maximiser now offers an ongoing rate of 5.75% on balances of up to $100,000.
More banks will announce savings rate increases in the next few days. And Finder is tracking them.
Sources
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