The Commonwealth Bank and Westpac have both decided to raise select savings rates by 0.25 percent, coinciding with an increase in their home loan rates.
Smaller banks are following suit, implementing similar changes.
However, Canstar highlights that many account holders are unable to benefit from the bonus interest rates due to unmet criteria.
A recent survey involving over 1,000 Australians with conditional savings accounts revealed that 41 percent consistently fall short of meeting the monthly requirements for maximum interest.
Among them, a notable 11 percent admit they never meet the necessary conditions.
Consequently, the standard interest rate often holds little significance.
For example, the Commonwealth Bank’s Goal Saver account attracts 4.50 per cent bonus interest, but only 0.25 per cent in standard interest.
Conditions can include terms like making a deposit, or increasing the account balance, each month or making no withdrawals.
”CBA has lifted the maximum rate on its popular Goal Saver account to 4.50 per cent, which will be a win for engaged savers. However, like Westpac, customers need to meet the bank’s monthly terms and conditions or risk seeing their rate fall to an inch off the floor,” Canstar.com.au’s data insights director, Sally Tindall, said.
“CBA is also lifting the rate on its NetBank Saver, to a headline rate of 4.70 per cent for new customers for the first five months, however, existing customers will only see a boost of 0.15.
“That said, it’s more than Westpac’s online saver rate for existing customers, which isn’t moving at all.
“These rate decisions, where banks pick and choose which rates within a savings account get a boost and which miss out, are a great reminder of how important the fine print is when it comes to something as seemingly simple as a savings rate.”
She said customers must check the conditions regularly to ensure they’re making the most of their money.
“Canstar research shows two in five bonus savers miss out on earning the maximum interest every month, so it’s imperative people understand the conditions and consider whether a simpler account might suit them better.
“In a market where top savings rates are now pushing into the 5’s again, savers should shop around if their bank isn’t rewarding them for their loyalty.”
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