Summary:
Australia’s June quarter GDP rose 0.6%, with annual growth at 1.8%, driven by strong household consumption (+0.9%qtr), supported by rising disposable incomes (+4.1% YoY), tax relief, and disinflation. Goods spending (+1.0%) outpaced services (+0.8%) amid EOFY discounts and holiday travel.
Cash rate expectations show a steady decline from 3.6% to below 3.00% by September 2026. This week, the cash rate and short-term yields held steady, while long-term bond yields eased modestly. Savings account rates vary widely, with online banks offering up to 5.00%, while traditional accounts lag. Market sentiment remains cautious, with limited upward pressure on interest rates.
Interest rates on Australian savings accounts tracked by YieldReport vary widely. The highest rates are offered by Ubank Save Account at 5.00%, ING Savings Accelerator at 4.70% and Rabobank Premium Saver at 4.65%. Major of the banks generally offer rates between 4.00% and 4.45%, including AMP Saver, CBA NetBank Saver, and NAB iSaver. Lower rates are seen in accounts such as Macquarie CMA (2.00%), RAMS Saver (1.40%), and ANZ Premium (0.05%). Mid-range options include ME Online Savings and Up Savers Account at 3.85%. Overall, online and specialty savings accounts tend to offer higher returns, while traditional or tiered accounts remain comparatively low.
Figure 1: Market Expectation on Cash Rate
CASH ACCOUNT.xlsx
Product Interest
Rate p.a.Notes AMP Saver Account 4.45% To earn the bonus rate, you must grow your account balance by at least $250 (excluding interest earned) by the end of each calendar month. Applies to balances up to $500,000. ANZ Premium 0.05% $10,000 - $249,999 ANZ Progress Saver 3.40% To earn the bonus rate, you must deposit at least $10 in one transaction and not make any withdrawals or transfers during the month.Applies to balances up to $500,000 Arab Bank Online Savings 4.55% No minimum deposit or monthly conditions to earn interest.Applies to balances up to $499,999 for the higher rate Bankwest Hero Saver 4.00% Variable Hero rate on eligible balances up to $250,000.99. CBA NetBank Saver 4.45% 4.45% p.a. for the first 5 months (includes a 2.90% p.a. fixed bonus margin above the standard variable rate of 1.55% p.a. CBA Goal Saver Account 4.45% 4.25% p.a. when you grow your balance each calendar month (excluding interest and transactions initiated by the bank) Heritage Online Saver 4.00% get a 4 month Bonus Intro Rate* available for new members on balances up to $100,000. ING Savings Accelerator 4.70% To earn the bonus rate, you must deposit at least $1,000 into a personal ING account, make 5 eligible transactions with a linked Orange Everyday account, and grow the balance each month Macquarie CMA 2.25% Interest rates vary based on account balance tiers.applies $10,000,000 and above: ME Online Savings 3.60% Bonus interest applies to balances up to $250,000. NAB iSaver 4.40% for the first 4 months (includes a 3.15% p.a. fixed bonus margin above the standard variable rate of 1.25% p.a.Available to new customers or those who haven't held a NAB iSaver in the last 12 months. NAB Reward Saver 4.10% includes a 0.10% p.a. variable base rate and a 4.00% p.a. variable bonus rate).To earn the bonus rate, you must make at least one deposit on or before the second last banking day and no withdrawals. Rabobank PremiumSaver 4.65% On balances to $250,000. Balance increased by $200 a month. RAMS Saver Account 1.30% On balances to $500,000. Minimum $200 deposit each month with no withdrawals. Suncorp Growth Saver 4.30% Earn 4.30% p.a. Growth Saver bonus interest each month you grow your net balance by $200 or more (excluding interest) and make no more than one withdrawal. ubank Save Account 5.00% All you need to do is have a Spend account and deposit $500+ per month into any Spend, Bills, or Save accounts (not including internal transfers) to get the bonus interest rate. Easy. Up Savers Account 4.30% To earn the bonus rate, you must deposit at least $200 each month and make no withdrawals. Westpac eSaver 4.25% Fixed rate for the first 5 months for new eSaver customers.