RBA cuts rate again: How to get up to 2.75% p.a. on your savings
The cash rate is at a record low of just 0.75%, but Australians can still earn up to 2.75% p.a. on their savings account.
The RBA has cut the official cash rate for the third time this year down to a new record low of just 0.75%. This follows a cut in July down to 1%, and a cut before that in June down to 1.25% after a period of more than 30 months of no movement.
Unfortunately for Australians trying to save, a lower cash rate usually means lower interest rates offered on savings accounts and term deposits. This is because lenders are often pressured to drop home loan rates and they need to make up for this elsewhere, with deposit accounts being the obvious target.
However, while we are seeing record-low interest rates on savings accounts, consumers can still get themselves up to 2.75% p.a. on their savings by comparing their options.
How to get up to 2.75% p.a. or more on your savings
The Rabobank High Interest savings account pays 2.75% p.a. for the first four months after opening the account. There are no deposit conditions to meet to receive this high rate, but it is only offered to new customers. After the four months are up, the rate will drop to the standard variable rate, which is currently 1.30% p.a. Then, it's up to you if you want to keep the account open or switch your savings to another account with a higher rate.
The AMP Saver Account pays 2.61% p.a. for the first four months, again, for new customers only and with no deposit conditions to meet. After the introductory period, the interest rate drops to the standard variable rate of 1.65% p.a. So you get a slightly lower bonus rate with AMP than you do with Rabobank, but the ongoing standard rate is higher.
Digital bank Up is offering a competitive, ongoing bonus rate of 2.50% p.a. on its Up Saver account. You'll earn this rate each month that you make five or more transactions with the linked Up debit card. Another digital bank, 86 400, is also offering 2.50% p.a. on its Save account when you deposit $1,000 in a month.
The UBank USaver offers savers 2.41% p.a. when you link the account to the Ultra Transaction Account and transfer at least $200 per month. This is an ongoing rate that you'll get each month that you meet the deposit condition.
Compare other savings accounts using our comparison.
NOTE: All interest rates mentioned in this article were correct when publishing on 1 October 2019, and may have changed slightly since.