Banks have made substantial increases to their deposit rates since May last year but it has been a highly selective process, with most of the increases going to short-term introductory rates and bonus rates.
Comparison site Canstar analysed savings account rates in its database, comparing rates at the end of April last year with current rates.
For accounts that pay only a base rate, the average savings rate increased by 183 basis points over that period – from 18 basis points to 2.01 per cent.
The increase in the cash rate over the period was 325 bps.
On bonus saver accounts, the average base rate has increased by just 25 bps to 30 bps, while the average bonus rate has increased by 253 bps to 2.98 per cent.
Assuming the account holder meets the conditions for the monthly bonus rate payment, the average bonus saver account rate has increased by 277 bps to 3.28 per cent.
Introductory rates, which apply on new accounts for three to six months, increased by 321 bps to 3.68 per cent.
But the average base rate that applies after the introductory period has ended increased by only 135 bps to 1.52 per cent.
Commonwealth Bank took this approach when it announced changes to savings rates yesterday. The bonus rate on its GoalSaver account was increased by 75 bps to 4 per cent, made up of a base rate of 25 bs and a bonus rate of 3.75 per cent.
Canstar said the big banks’ introductory rate increases have, in general, been well below the average.
Canstar finance expert Steve Mickenbecker said most deposit takers have been following this sort of game plan.
Mickenbecker said: “The game of saving these days has become complicated. Savers need to make sure they meet bonus conditions each month and be prepared to change banks when promotional rates expire.”
Canstar said the highest savings account rates in the market currently are being offered by Bank of Queensland, ING Bank, Macquarie Bank, Rabobank, Newcastle Permanent Building Society and MOVE Bank. All are offering accounts with rates of 4.5 per cent or more.