Savings accounts after rate hikes: why many savers miss the bonus rate

What happened. ABC News looked at the annual reports of Australia's four biggest banks: Commonwealth Bank, NAB, ANZ and Westpac. They show how much customer money sits in accounts that earn no interest: nearly $122 billion at Commonwealth Bank as of June, nearly $82 billion at Westpac as of March, about $67 billion at NAB and about $61 billion at ANZ for the same period. By the ua.news count, that is nearly $332 billion together. The ABC does not say how much of it is in savings accounts and how much in everyday ones.

Rates rose, but not for everyone. The RBA's cash rate target has been 4.60% since September 30, 2026, after a rise of 0.25 points. It is the fourth hike this year, and in December 2025 the rate was 3.60%. The comparison site Canstar compiled data for the ABC: after the September hike each of the four banks raised its maximum savings rates by 0.20 or 0.25 points. But the rises applied only to a few products and came with strict conditions. Without them the account pays the base rate, and the banks kept it flat at 0.10%.

How a bonus works. The conditions the ABC names are regular contributions, a minimum monthly deposit and withdrawal requirements. One slip, such as a missed deposit or a forgotten withdrawal rule, and the interest is close to zero. Sally Tindall of Canstar says many customers miss out at least from time to time. She suggests banks send an email or text near the end of the month to customers who are about to fall short. The Australian Banking Association replies that banks help customers through app alerts, and that they paid depositors more than $120 billion in interest in the past financial year.

What a reader in any country can take from this. The gap between the number in the ad and what you earn is not an Australian quirk. Ask your account three questions. What is the rate with no conditions? What exactly must I do each month to get the bonus? How long does the introductory rate last? Michelle Cull, an associate professor at Western Sydney University, told the ABC that an introductory rate lasts only for a limited time, and that people should read the terms carefully and check their accounts regularly. Few customers switch: the ACCC found 16% changed a savings account in three years.

Limits. The 70% figure comes from a 2023 ACCC inquiry, not a fresh count. We rely on the ABC's account of it and did not open the ACCC report. Rates and terms change, so check your own bank's page.

Confirmed facts

• According to Canstar data for the ABC, after the September RBA hike Commonwealth Bank, NAB, ANZ and Westpac raised their maximum savings rates by 0.20 or 0.25 percentage points.^[1][3]
• The rises applied only to a few products with strict conditions. Without meeting them the base rate applies, which the banks kept at 0.10%.^[1][3]
• The 2023 ACCC retail deposits inquiry found that more than 70% of customers never met the monthly conditions.^[1][3]
• Commonwealth Bank held nearly $122 billion in accounts with no interest as of June, Westpac nearly $82 billion, NAB about $67 billion and ANZ about $61 billion as of March.^[1][3]
• Together the four banks hold nearly $332 billion in accounts with no interest.^[3]
• The RBA cash rate target is 4.60% since September 30, 2026, after a rise of 0.25 points. In 2026 it rose on February 4, March 18, May 6 and September 30.^[2]
• According to the ACCC, only 16% of consumers switched their savings account in three years, and 11% their transaction account.^[1][3]
• The ABC says the RBA meets again next week, and markets put the chance of a rate rise at 98%.^[1]
• Australian Banking Association chief executive Simon Birmingham said banks paid depositors more than $120 billion in interest in the past financial year.^[1][3]
• Sally Tindall of Canstar suggested banks send an email or text at the end of the month to customers who will not meet the conditions.^[1][3]
• Michelle Cull of Western Sydney University noted that an introductory rate lasts only a limited time and advised checking accounts regularly.^[1][3]

Implications

• ConfirmedA higher central bank rate does not guarantee higher income on a savings account: much depends on the product and its conditions.
• Our readingAn end-of-month reminder or a product with no monthly conditions lowers the risk of ending up on the base rate. This is our reading.
• Our readingIf the RBA raises again, the gap between bonus and base rates could widen if banks again leave the base rate alone. This is our reading.

Still unknown

• How much of the money in no-interest accounts sits in savings accounts and how much in everyday ones
• What share of customers miss bonus conditions now: the 70% figure dates from 2023
• Whether banks will raise base rates after the next RBA decision

Who it affects

Global, Australia. Anyone with a savings account that has a bonus or introductory rate

Sources

1. ABC News (Australia): Banks sitting on billions in customer savings that do not grow with interest rate hikes October 31, 2026 · media
2. Reserve Bank of Australia: Cash Rate Target · official
3. UA.NEWS: Four Australian banks hold nearly $332bn in interest-free accounts October 31, 2026 · media