Westpac, ­NAB and ANZ lift savings rates, Commonwealth Bank bumps up term deposit rates

The Commonwealth Bank has bumped up its term deposit rates amid expectations of more rate rises to come, as Westpac, ­NAB and ANZ all move to lift savings rates.

Australian households have a total of $1.26 trillion in the bank.

The Commonwealth Bank has bumped up its term deposit rates amid expectations of more rate rises to come, as Westpac, ­National Australia Bank and ANZ all move to lift savings rates.

CBA has gone it alone in being the only major bank not to pass on the Reserve Bank’s full 25-basis-points cash rate jump to savings account holders. Instead, the bank is offering prospective term ­deposit holders a 2.25 per cent term deposit for 18 months.

This represents a 1.95 per cent increase on the bank’s current term deposit offers.

This comes as the bank’s head of Australian economics, Gareth Aird, warned of a further 25-basis-point rate rise in June, July, August and November that would see the cash rate hit 1.35 per cent by the end of the year.

Mr Aird also pointed to ­another 25-basispoint lift in February next year to 1.6 per cent.

NAB, which moved to lift rates on home loans, will also increase the reward saver bonus interest rate on its accounts by 0.25 per cent. This will double NAB’s ­Reward Saver rate offer from its current levels of 0.01 per cent variable base rate and 0.24 bonus interest rate. The increase will take effect from May 13.

NAB’s standard variable home loan will increase by 0.25 per cent to 4.77 per cent.

Westpac will also lift interest rates by 0.25 per cent across its home loans and some customer deposit accounts.

Westpac Life and Westpac 55+ and Retired customers will receive an extra 0.25 per cent interest on their accounts from May 17.

Westpac Life customers can currently receive a 0.25 per cent total variable rate, if bonus ­interest criteria are met on the ­accounts.

ANZ said it would lift the bonus rate on its Progress Saver account by 0.25 per cent on ­Friday, May 13. The bonus rate is only eligible to ANZ Progress Saver holders who deposit at least $10 a month and make no withdrawals. Savers who meet the requirements will be able to access a 0.4 per cent bonus rate.

Queensland bank Suncorp moved to lift its home loan and deposit rates on Wednesday, with the bank adding a 0.4 per cent sweetener to its savers. The bank said it would lift its 12-month term deposit rate by 0.4 per cent to 1.4 per cent.

“We will continue to play our part in supporting the economy, which requires us to balance the needs of borrowers and savers, whilst continuing to grow the business for our shareholders,” Suncorp chief executive Clive van Horen said.

ING is also considering its rates but has made no moves yet.

The latest Australian Prudential Regulation Authority statistics for March show Australian households have a total of $1.26 trillion in the bank – an ­increase of more than $272bn since the start of the pandemic.

Meanwhile, Australians face increased cost-of-living pressures after headline inflation lifted from 3.5 per cent to 5.1 per cent over the 12 months to March.

RateCity research director Sally Tindall said some bank customers would be disappointed. “Westpac is hiking its goal saver and retiree accounts by the full 0.25 per cent. However, its savings accounts for kids and young adults have missed out,” she said.

“CBA and ANZ now have the chance to step up to the plate and pass on a rate hike to all of their savings customers, who’ve been on pitiful rates for far too long.”

Ms Tindall said CBA’s move to limit its savings rate increases to term deposits was “not going to suit” young people and children with growing accounts.