Macquarie's digital savings account currently pays a 4.75% p.a. base interest rate on balances up to $1 million.
The announcement made on Monday marks a 25-basis point bump from the current base rate available without any deposit conditions.
Meanwhile, new account holders earn up to 5.35% p.a. for the first four months as part of the introductory offer on balances up to $250,000.
The welcome rate will be maintained at 5.35% p.a.
Savings account interest rate hikes are rarely heard of these days, as market expectations of cash rate cuts in the near term intensify amid the latest shift in RBA's messaging.
Major bank economists are pricing in for the first cut to occur either later this year or early 2025.
Term deposit rates have been on freefall recently, with several providers, including the four majors, making a flurry of cuts across a range of products.
Once implemented, Macquarie's new savings account base interest rate will beat Bank of Queensland's 4.85% p.a. base rate available through its Simple Saver product.
Simple Saver is a digital savings account accessible through the myBOQ app.
ANZ Plus, previously one of the highest unconditional rates at 4.90% p.a. recently introduced a monthly deposit requirement on its account but upped the rate to 5.00% p.a.
Transaction account rate down
It's not all good news in Macquarie land.
While the savings account rate goes up, Macquarie lowered the interest rate for its transaction account.
Macquarie Bank transaction account rate will be reduced to 2.75% p.a., a substantial 200 basis point drop from its current 4.75% p.a. on balances up to $1 million.
The new rate will also apply on new and existing accounts from 17 October.
However it's still one of the highest transaction account rates in the market, many of which tend to earn 0%.
Photo by Andre Taissin on Unsplash
