Two banks took the unusual step of launching market-leading savings rates last week, while the majority of deposit-takers were cutting savings rates. Macquarie Bank and AMP Bank both launched introductory rate offers of 2.65 per cent. The rate is higher than many mortgage rates.
Macquarie Bank is offering 2.65 per cent for four months on its Savings Account, reverting to an ongoing rate of 1.35 per cent. The rate is available on balances up to A$250,000.
AMP Bank is offering 2.65 per cent for six months on its Saver Account, reverting to an ongoing rate of 1.05 per cent. The rate is available on balances up to $500,000.
According to comparison site RateCity, Heritage Bank has a four-month intro rate of 2.30 per cent, with an ongoing rate of 0.9 per cent, and Rabobank has a four-month intro rate of 2.25 per cent, with an ongoing rate of 0.8 per cent.
The highest bonus savings rate is 2 per cent, which is being offered by 86 400, Up, Bank of Queensland, MyState Bank and MOVE Bank.
One explanation for these relatively high rates is that banks are concerned about widening spreads and illiquidity in the wholesale funding market and are looking to boost their retail deposit funding base.
RateCity said higher savings rates are not the norm, with 60 banks cutting savings rates in March. One bank, Xinja, stopped taking deposits.
On Friday, Commonwealth Bank cut the intro rate on its NetBank savings account by 25 basis points to 1.05 per cent for five months (with on ongoing rates of 0.05 per cent).