Savings account interest rates: October 2021
Last year’s three reductions to the cash rate were not kind to the nation’s savers, and despite the cash rate remaining steady since November 2021, cuts to savings accounts continue to flow through. Last month, we recorded 26 in total, which brought the average savings rate in our database to a paltry 0.39% p.a.
Westpac’s Life account, which previously offered a maximum rate of 3.00% p.a. for those in the 18 to 29 age bracket, was cut by 50 basis points to 2.50% p.a. As before, the maximum rate only applies on balances up to $30,000 and savers will be required to make at least one deposit, grow their balance, and make five eligible debit card purchases with a linked Westpac Choice transaction account each month.
Bank of Queensland customers can also receive a 2.50% p.a. interest rate with the Fast Track Starter Account. Like the Westpac Life account, there are age restrictions, a few monthly conditions, and the maximum rate only applies to balances up to $10,000.
For older Australians, there are still a few worthwhile options out there. ING currently offers an ongoing bonus rate of 1.35% p.a., so long as a few monthly conditions are met. Virgin Money offers an introductory rate of 1.50% p.a., which is available for the first 3 months before reverting to 1.20% p.a. And the Macquarie Savings Account comes with a base rate of 0.95% p.a. (and introductory rate of 1.10% p.a.), which is unconditional for balances up to $250,000.
To find out how interest rates are tracking in other banking products for October, check out our snapshots for Home Loan Interest Rates, Personal Loan Interest Rates, Car Loan Interest Rates and Term Deposit Interest Rates.