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Savers encouraged to ‘vote with your feet’ as new best rate revealed

Bank of Queensland has taken out the top spot for Aussie savings rates.

Logos of the big four banks and Australian money to represent the best accounts for savers.
Aussie savers have been encouraged to leave their bank if they're not getting a good savings rate. (Source: Getty)

Aussie savers have been given a new best rate, with seven banks now offering savings rates above 5 per cent.

Bank of Queensland will increase the maximum rate on its Future Saver by 0.15 per cent to 5.30 per cent, effective today.

This would be the new highest ongoing savings rate, excluding kids accounts, despite the fact Bank of Queensland only passed on part of the interest rate hike on this account.

However, the rate is exclusive to customers aged 14-35 with a Future Saver account on balances up to $50,000.

“More banks are breaking the 5 per cent barrier on at least one of their savings accounts, which is fantastic to see,” RateCity.com.au research director Sally Tindall said.

“While it’s disappointing Bank of Queensland didn’t pass on the full 0.25 percentage points, anyone with this account will be pretty stoked they are on the highest rate available to them.”

Seven banks now offer savings rates above 5 per cent, which Tindall said was encouraging to see.

“It’s been a long time since we could say that. If you’ve got money in a bank account that’s earning a rate less than 5 per cent, vote with your feet and switch to a bank willing to reward you with a higher rate,” she said.

The best savings rates available

RateCity’s database shows seven banks currently have ongoing rates of 5 per cent or more, including ING, MOVE Bank and Virgin Money for all adults, and BOQ and Westpac for young adults (excluding kids accounts).

All adults

Max rate

Balance for max rate

ING Savings Maximiser

5.25%

$100,000

Virgin Money Boost Saver

5.10%

$250,000

MOVE Bank Growth Saver

5.00%*

$25,000

BOQ Smart Saver

4.85%

$250,000

AMP Bank Saver

4.80%*

$250,000

Young adults

Max rate

Balance for max rate

BOQ Future Saver (14-35)

5.30%

$50,000

Westpac Spend&Save (18-29)

5.00%

$30,000

Police Bank U30 Super Charge (18-29)

5.00%*

$10,000

Great Southern Bank Goal Saver (18-24)

4.85%*

$50,000

*Note bank is yet to announce its May RBA hike.

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