Progress Saver News Today

While lending rates and funding costs drive profitability of banks, other factors are also at play, such as bad debts and the health of the economy

Australians who put their money in the bank can now get 4.8 per cent interest. But some of the BIg Four banks are still being stingy, despite nine Reserve Bank interest rate rises.

Australian savers have been missing out despite nine successive interest rate rises since last year. Those hoping for better returns are being urged to consider switching from a Big Four bank.

The treasurer said he expects deposit rates to lift alongside official rate rises, but the banks remained silent on whether they would pay savers more.

Several lenders have announced interest rate rises on mortgage and savings rates, following the central bank’s decision to raise the cash rate by 50 bps.

Australias big four banks have declared they care about their customers despite being quick to hike their mortgage rates but being slow to raise savings rates since rates first went up in May.

The banks were trading higher on Wednesday after Commonwealth Bank became the first big bank to move on rates for home loans and depositors.

Analysis shows what savers need to look out for to make sure they get the full 50 basis point rate rise.

The latest 0.5 percentage point RBA rate rise is set to be passed through in full, bolstering bank profits but adding to headwinds as loan levels and approval rates fall.

Commonwealth Bank has so far failed to pass on the latest official interest rate rise to everyday savers, but Westpac, NAB and ANZ have.