Westpac results: Two-thirds of our savings are in high-interest accounts
Interest rates for savings are at record highs, and we're not shy about hunting them down.
There's an interesting chart buried on page 42 of Westpac's annual results, which were announced today.
It shows the amount of savings held in deposit balances at Westpac, and the interest rate payable on those balances.
This is easier to follow if we convert the basis points (bps) into interest rates, and show the percentage of funds held in each range.
|Rate (p.a.)||Sep-22 ($bn)||%||Mar-23 ($bn)||%||Sep-23 ($bn)||%|
The good news here? A year ago, just 1% of deposits held at Westpac were earning over 4% p.a. in interest. As of September 2023, that figure is up to 32%.
More broadly, a year ago 69% of deposits were earning under 2% p.a. Now 67% are earning over 2% p.a.
That tells us that consumers are actively hunting down higher rates for their savings.
We've seen interest rates for savings accounts rising steadily, in parallel with the 7 increases to the official RBA cash rate over the period the Westpac data tracks.
The average rate across all savings accounts was 2.00% p.a. as of October, according to Finder's analysis of interest rates.
These numbers show that increasingly we're not just settling for a regular savings account, and we're actively hunting down higher rates.
Right now, you can score 5.50% p.a. with some accounts.
Westpac is one of the Big 4 banks, so it's a useful marker of trends across the broader banking sector.
Get more from your money! Compare high interest savings accounts.