What are historical bank savings interest rates in Australia?

Historical bank savings interest rates in Australia have seen significant fluctuations. In the 1980s, interest rates were extremely high, sometimes exceeding 15%. However, since the Global Financial Crisis in 2008, rates have generally trended downwards, reaching historic lows below 1% in the late 2010s and early 2020s due to central bank policies aimed at stimulating the economy.

What are the historic interest rates for savings accounts?

Historic interest rates for savings accounts in Australia have varied significantly over the decades. For example, during the 1980s, rates were as high as 15-17%, reflecting the high inflation of the time. Between 2017 and 2022, rates were much lower, typically ranging between 1% and 3%. Rates have since risen: the average bonus savings rate reached 4.8% p.a. in May 2026, according to RBA data.

What are traditional savings account typical interest rates?

Traditional savings account interest rates were typically between 0.5% and 2.5% during the low-rate period from 2017 to 2022. Rates have since risen sharply, with the average bonus savings rate at 4.8% p.a. as of May 2026, though this can vary based on economic conditions, central bank policies, and the specific terms of the savings account. Historically, rates have been much higher, especially during periods of high inflation, such as the 1980s.

What was the average interest rate on a savings account in 2015?

In 2015, the average interest rate on a savings account in Australia ranged between 2% and 3%. This was part of a period of relatively low rates, influenced by global economic conditions and the Reserve Bank of Australia's monetary policies aimed at supporting economic growth.

What was the highest historic interest rate?

The highest historic interest rates in Australia were observed in the early 1980s, when savings account interest rates peaked at around 17%. This period was marked by high inflation and tight monetary policies aimed at controlling it. These rates were among the highest ever recorded for savings accounts in Australia.

Australian Interest Rate History: RBA Rate Chart

Broadly speaking, Australian interest rates fall in times of economic crisis, low inflation and high unemployment. Rates rise, sometimes very fast, when the economy is booming or inflation is surging.

Since 2022, inflation has pushed rates sharply higher. One of the fastest tightening cycles in decades took the cash rate to 4.35% by late 2023, before the RBA eased through 2025 and then resumed hiking in early 2026. On 29 September 2026, the Reserve Bank of Australia lifted the official cash rate by 25 basis points to 4.60%, its fourth hike of the year and the highest level since November 2011.

Key statistics

The average bonus savings rate at Australia's five largest banks held at 4.8% p.a. in September 2026, up from 4.05% a year earlier, according to Reserve Bank of Australia data. Over the same period, the cash rate rose from 3.60% to 4.60%.
Some banks are offering rates as high as 6.25% p.a. as of October 2026, though these are introductory rates for new customers. The highest base rate is 5.5% p.a.
With the RBA lifting the cash rate four times in 2026, banks are competing harder for deposits, and savers who shop around can earn well above the big-bank average.

Historic savings rates over time

The major driver of interest rates is the official cash rate target set by the Reserve Bank of Australia (RBA).

When the cash rate falls, interest rates on home loans and savings accounts fall. This is good news for borrowers but bad news for savers earning interest in their savings accounts.

After sitting near zero during the pandemic, both savings and lending rates began to climb sharply from May 2022 as the RBA raised the cash rate to curb inflation.

As of September 2026, the RBA cash rate is 4.60%, while the average bonus savings rate is at 4.8%, according to the RBA data. Following the latest hike, the big four banks now offer between 5.25% and 5.5% on their bonus savers, up from 5.0% to 5.25% in September. The gap between the two remains consistent, showing how banks adjust savings returns in line with monetary policy.

Historic savings account rates: the Big Four banks

The graph above shows how savings rates from the Big Four banks have moved as the RBA raised the cash rate. (ANZ, CBA, NAB and Westpac)

Savings account rates climbed sharply through 2022 and 2023 as the RBA lifted the cash rate to curb inflation, with the big banks' average bonus rate peaking at 4.9% in late 2023. They eased through 2025 as the RBA began cutting, and the cash rate fell to 3.60% by the start of 2026. That relief proved short-lived. Hikes in February, March, May and September 2026 lifted the cash rate to 4.60%, its highest level since 2011, and savings rates have followed it up.

Banks have passed these hikes on to savers, but mostly through the bonus portion of the rate, so anyone who misses the monthly conditions sees little benefit. After the September hike, the big four's bonus rates sit between 5.25% and 5.5%, still well below what borrowers are paying. With markets split on whether the RBA will move again in November, it pays to shop around.

Historic home loan rates

Home loan rates have shifted dramatically over time. From 1959 to the late 1980s, the standard variable rate climbed steadily, peaking at 17% in 1989 and 1990. After the early 1990s, rates trended lower for decades, dropping sharply after the Global Financial Crisis and again during the COVID-19 pandemic, when the average 3-year fixed rate fell as low as 2.14%.

Rates began rising again in 2022 as the RBA tightened policy. After a brief easing through 2025, the RBA resumed hiking in 2026, lifting the cash rate to 4.60% by the end of September. As of September 2026, the average standard variable rate is 8.77%, discounted owner-occupier rates average 6.8% and 3-year fixed rates average 7.02%.

Major turning points

1990 – Interest rate peak

The cash rate reached 17.50% in early 1990 as the RBA fought high inflation. Mortgage repayments became extremely expensive, but the peak was short-lived.

1993 – Rates stabilise

By July 1993, the cash rate had fallen to 4.75% as the economy recovered from recession. Inflation was under control, though growth remained modest.

2008 – Global Financial Crisis

During the GFC, the RBA slashed the cash rate from 7.25% to 3.00% by early 2009 to support the economy amid global turmoil.

2020 – COVID-19 pandemic

Rates stayed low for years after the GFC, before hitting a record low of 0.10% in November 2020 to counter the economic shock of COVID-19. This period also saw a surge in property prices.

2022-2025 – Battling inflation

As inflation surged due to supply shortages, post-pandemic demand and global conflicts, the RBA began one of the fastest tightening cycles in its history, lifting the cash rate from 0.10% in May 2022 to 4.35% by late 2023. The pace of rate hikes slowed throughout 2024 and, as inflation eased, the RBA began cutting rates in 2025, bringing the cash rate down to 3.60% by the start of 2026.

2026 – Rates rise again

Inflation picked up again in 2026 and the RBA reversed course. Hikes in February, March and May returned the cash rate to its 2023 peak of 4.35%, and after a hold over winter, hotter-than-expected inflation data prompted a fourth hike in September. The cash rate now sits at 4.60%, its highest level since November 2011. Most economists expect this to be the peak, though some see one more increase before the end of the year.

What is the average savings rate?

The graph below shows the average bonus savings rate across Australian savings accounts each year.

Year	Average bonus savings rate
2002	2.9
2003	2.94
2004	3
2005	3.4
2006	4.03
2007	4.6
2008	5
2009	2.39
2010	3.94
2011	5.11
2012	4.96
2013	4.27
2014	3.77
2015	2.88
2016	2.33
2017	1.92
2018	2.08
2019	1.89
2020	1.01
2021	0.35
2022	1.37
2023	4.45
2024	4.87
2025	4.30
2026	4.80

Source: RBA

How the RBA sets interest rates and why

The RBA sets the cash rate target, which is the benchmark interest rate that influences how banks lend to each other overnight. Changes in this rate affect how much banks charge borrowers and pay savers.

When inflation is high, the RBA raises the cash rate to cool spending and slow price growth. When the economy weakens, it cuts rates to encourage borrowing and investment.

The cash rate directly shapes rates on home loans, savings accounts, and term deposits, and remains one of the most important indicators of Australia’s economic health.

The cash rate has a major impact on the rates banks and lenders set for:

Home loans, especially variable interest rate loans.
Savings accounts.
Term deposits.

Why does the RBA raise or lower the cash rate?

The cash rate is a policy tool that allows the RBA to influence the economy. Generally speaking:

A higher cash rate makes money more expensive to borrow. Higher interest rates reduce people's borrowing and spending and can therefore lower inflation. This is because it's harder to spend money when credit is expensive. The RBA may lift interest rates to lower inflation or cool a booming but possibly unstable economy.
A lower cash rate makes money cheaper to borrow. Lower interest rates encourage borrowing and spending. This boosts economic activity because it's cheaper to access credit. This can lead to higher property prices, more consumer spending and higher inflation.

What happens to home loans and savings accounts when the cash rate moves?

When the cash rate increases, lenders quickly pass on rate increases to borrowers with variable rate home loans. This makes your home loan repayments more expensive. Banks may increase the rate on your savings account, but they may not pass on the full rate rise, or offer any increase at all.
When the cash rate falls, lenders mostly pass on the rate cut to borrowers with variable rate home loans. This is good news for borrowers. But your savings account rate will probably decrease, meaning you earn less interest on your savings.

There's much more to interest rates than the cash rate

Banks and lenders adjust their interest rates on home loans and savings accounts because of many factors. The cash rate is a major one, but there are many others.

Competition and strategy. Banks are competing with each other for customers. Sometimes a bank will deliberately increase its savings account rates to entice more customers, or lower its home loan interest rates to attract new borrowers.
Funding costs. Banks and lenders borrow money from many sources to cover withdrawals from customers or the money to fund a home loan. The interest rates banks pay to borrow this money from various money markets or other sources affect the rates bank set for customers. As some of this money comes from overseas, interest rates in other countries (most notably the US Fed) influence Australian bank rates regardless of what the RBA does with the cash rate.
Risk. Banks decide their own levels of risk and factor this into their loan interest rates. A bank may decide it is overexposed to loans for property investors, and raise rates to reflect this. Banks and lenders can set interest rates for individual borrowers, but in practice this happens with personal loans and not with home loans or savings accounts.

Frequently Asked Questions

Historical bank savings interest rates in Australia have seen significant fluctuations. In the 1980s, interest rates were extremely high, sometimes exceeding 15%. However, since the Global Financial Crisis in 2008, rates have generally trended downwards, reaching historic lows below 1% in the late 2010s and early 2020s due to central bank policies aimed at stimulating the economy.
Historic interest rates for savings accounts in Australia have varied significantly over the decades. For example, during the 1980s, rates were as high as 15-17%, reflecting the high inflation of the time. Between 2017 and 2022, rates were much lower, typically ranging between 1% and 3%. Rates have since risen: the average bonus savings rate reached 4.8% p.a. in May 2026, according to RBA data.
Traditional savings account interest rates were typically between 0.5% and 2.5% during the low-rate period from 2017 to 2022. Rates have since risen sharply, with the average bonus savings rate at 4.8% p.a. as of May 2026, though this can vary based on economic conditions, central bank policies, and the specific terms of the savings account. Historically, rates have been much higher, especially during periods of high inflation, such as the 1980s.

Finder writers are subject matter experts and use primary sources, in-depth research and interviews with other experts to ensure you're getting accurate, up-to-date information. Articles are fact checked in line with our editorial guidelines.

Thank you for your feedback!

Written by

Alison Banney

Editorial Manager, Money

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Alison is an editor at Finder and a personal finance journalist with over 10 years of experience, having contributed to major financial institutions and publications such as Westpac, Money Magazine, and Yahoo Finance. She is frequently quoted in media outlets like SmartCompany and SBS, offering expert insights on superannuation and money management. Alison holds a Bachelor of Communications in Public Relations and Journalism from the University of Newcastle, and has earned three ASIC RG146 certifications in superannuation, securities and managed investments and general financial advice, ensuring her expertise is fully aligned with ASIC standards. See full bio

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Alison has written 592 Finder guides across topics including:

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2 Responses

JohnOctober 22, 2024

do you have historical monthly interest rate data for the Westpac (unsecured) Business Overdraft Rate?

Finder

SarahOctober 23, 2024Finder

Hi John, No, we don’t track individual bank interest rates.

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Australian interest rate history