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9News | Banks were quick to pass on rate hikes – just not for savers by 9News

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After the Reserve Bank of Australia lifted the cash‑rate target to 4.35 %, the four major banks quickly announced higher borrowing costs but have been slower to pass the increase on to savers. So far only Westpac has confirmed a rise, offering a 5.75 % ongoing rate on its Spend & Save account for customers aged 18‑34 who meet monthly bonus conditions, while its base rate remains unchanged for others. AMP already provides a “no‑strings‑attached” rate of 5.10 %, and Macquarie will raise its condition‑free account to 5.00 % from 22 May. The Commonwealth Bank, NAB and ANZ say their savings rates are under review and, based on past behaviour, are likely to pass on only part of the hike or impose strict eligibility criteria. Analysts note that after the March increase, bonus‑linked rates rose modestly (about 0.28 pp) while base rates barely moved, and that delaying or limiting pass‑throughs helps the banks protect profit margins—profits that recently hit a collective $43 billion pre‑tax, placing them among Australia’s most lucrative companies.

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Major banks holding off on passing rate hikes on to savers

<p>Most people with savings accounts are still waiting to hear if they can expect a higher return on their investments.</p>

9News