Westpac leads major banks in lifting saving rates after RBA decision

Westpac has become the first of the big four banks to announce it will pass on the RBA’s cash rate hike in full to its saving account holders.

In a statement on Thursday, Westpac confirmed an increase to their savings accounts from February 13 – four days before it will lift rates for mortgage holders.

Westpac Life, which is available to all adults, will rise by 0.25 to a maximum ongoing rate of 4.50 per cent.

Meanwhile Westpac Life customers for Australians aged 18 to 34 will now get 5.25 per cent.

But it comes with the caveat of meeting minimum monthly conditions otherwise savers get just 0.10 per cent across both products.

Canstar data insights director Sally Tindall says its great Westpac did the right thing by savers.

“Westpac is leading the way for young adults, confirming that it will continue as the market leader for savers aged 18 to 34, with an ongoing rate of 5.25 per cent,” she said.

“Of course, these young adults will need to school up on the fine print if they want this rate each month, with no move to the base rates, which start from just 0.10 per cent.”

Westpac was not alone in passing on interest rates to savers.

Australia’s fifth largest bank Macquarie also quickly announced they would pass on the rate hikes to savers.

Customers with Macquarie will receive an ongoing variable rate of 4.50 per cent a year on balances up to $2m, effective from February 20.

ING has also boosted saving account rates across the majority of its products including the popular ING Savings Maximiser.

From February 10 savers can get 5 per cent, again if they meet the minimum requirements.

Up Bank has lifted savings rates to 4.85 per cent from February 11.

Both UBank and AMP will offer savers 4.60 per cent from February 10.

While only Westpac has announced a change to savings rates, all four major banks announced interest rate hikes.

The Commonwealth Bank – the country’s biggest residential property lender – was the first to announce it would pass on the interest rate hike to customers, effective from February 13.

Westpac soon followed, announcing it would increase home loan variable interest rates by 0.25 per cent, effective from February 17.

ANZ later announced its variable interest rates would jump 0.25 per cent, effective from February 13.

Late on Tuesday, NAB also revealed its standard variable home loan interest rate would rise by 0.25 per cent from February 13.

Macquarie Bank also announced an interest rate hike for their home loan customers starting from February 20.

On Tuesday, the RBA announced it would lift interest rates by 25 basis points following its first meeting of 2026.

The official cash rate is now 3.85 per cent, back to what it was in July 2025.

Tuesday’s decision was unanimous, and the RBA hinted there may be more hikes to come.