The latest round of increases to savings rates, coming at a time when inflation is falling, means there is a growing number of deposit takers offering accounts that pay a real rate of return.
Comparison site Canstar has identified seven savings accounts on its data base that offer rates that are higher than the current annual inflation rate of 5.4 per cent. They are:
· Rabobank’s High Interest Savings Account that has a four-month introductory rate of 5.6 per cent on balances up to A$250,000, reverting to 4.2 per cent;
· ME’s HomeME Savings Account that pays a bonus rate of 5.55 per cent if a minimum of $2000 is deposited each month and the account balance grows (the bonus rate is available on deposits up to $100,000);
· Great Southern Bank’s YoutheSaver, which is open to people under 18, paying 5.5 per cent on balances up to $5,000 (on balances above that amount, the rate is 1 per cent);
· Macquarie Bank’s Savings Account paying an introductory rate of 5.5 per cent for four months on balances up to $250,000, reverting to 4.5 per cent;
· ING Bank’s Savings Maximiser paying a bonus rate of 5.5 per cent if the account holder deposits a minimum of $1,000 a month, grows the balance and makes five eligible purchases (the bonus rate applies to balances up to $100,000, the base rate is 55 basis points);
· MOVE Bank’s Growth Saver paying a base rate of 5.5 per cent if the account holder deposits $200 and makes no withdrawals in a month (The bonus rate is available on balances up to $25,000, and the base rate is 10 bps); and
· Teachers Mutual Bank’s Target Saver paying a bonus rate of 5.5 per cent if the account holder deposits a minimum of $1,000 a month and makes no withdrawals (the base rate is 1 bp).