RBA Rate Hike: Savings Account Rates Rise – March 2026 Updates

Australian savers are poised to benefit from the Reserve Bank of Australia’s (RBA) second interest rate increase in 2026, with a raft of banks already announcing boosts to savings account rates. The RBA raised the official cash rate by 25 basis points to 4.10% on March 17th, following a similar increase in February, effectively ending a period of rate cuts seen throughout 2025. While mortgage holders face continued pressure, this latest move signals a positive shift for those seeking to grow their savings.

Macquarie Bank Leads the Charge

Macquarie Bank was among the first to respond, announcing a 0.25% per annum increase to its transaction and savings account variable interest rates, effective April 2nd, 2026. Customers with a Macquarie Savings Account will now earn 4.75% p.a. On balances up to $2 million, up from 4.50% p.a. Latest customers will see an even higher welcome rate of 5.10% p.a. For the first four months on balances up to $250,000. Importantly, Macquarie Bank doesn’t impose any conditions to earn this interest.

AMP Move Save and ING Follow Suit

AMP Bank’s digital platform, AMP GO, is also increasing rates on its AMP GO Save account, lifting the rate by 0.25% to 4.85% p.a. From March 23rd, 2026, for balances up to $500,000. Balances between $500,000 and $5 million will earn 4.00% p.a.

ING is also increasing rates across its savings products. The Savings Maximiser account will see a 0.25% increase to 5.25% p.a. From March 27th, 2026. Yet, accessing this rate requires meeting specific criteria: holding an Orange Everyday bank account, depositing at least $1,000 from an external source each month, making five settled card purchases, and growing the account balance. The Kickstarter variable rate for new customers will also increase, offering rates of 3.80% p.a. (balances $0 – $49,999.99), 4.70% p.a. (balances $50,000 – $149,999.99), and 5.65% p.a. (balances $150,000 – $500,000) for the first four months.

Regional Banks Respond: Bank of Melbourne, BankSA, St George

Westpac’s regional banking brands – Bank of Melbourne, BankSA, and St George – are also increasing rates on their Incentive Saver accounts, effective March 27th, 2026. The top variable rate will rise to 4.90% p.a. On balances up to $250,000 for customers meeting bonus conditions. These conditions include maintaining a positive balance and making monthly deposits. For balances exceeding $250,000, the rate will be 4.75% p.a.

Judo Bank and MyState Bank Increase Rates

Judo Bank is increasing the variable rate on its Personal Savings Account by 0.25% to 5.35% p.a. From March 23rd, 2026, for customers who deposit $300 each month. MyState Bank is also adjusting rates, with the Hello Saver welcome rate increasing to 5.15% p.a. For new customers for the first four months (balances up to $100,000) and the ongoing rate rising to 4.75% p.a. The Bonus Saver account will see a maximum rate of 4.75% p.a. For balances up to $500,000, requiring monthly deposits and five eligible Visa Debit card transactions.

Teachers Mutual Group Follows

The Teachers Mutual Group, encompassing Firefighters Mutual Bank, UniBank, and Health Professionals Bank, will increase variable interest rates by 0.25% p.a. Across its savings products from March 26th, 2026. This will lift the Starter Saver account rate to 5.00% p.a. For balances up to $50,000, available to members under 30 and university students.

Ubank First to Move

NAB-owned Ubank was the first bank to announce rate increases, raising its Everyday Bonus rate to 4.85% p.a. (up from 4.60%) on balances up to $1 million, effective March 24th, 2026, subject to meeting bonus conditions. The welcome rate will also increase to 5.60% p.a. For new customers for the first four months.

What Drives These Increases?

These rate hikes are a direct response to the RBA’s decision to increase the cash rate. The RBA cited a pick-up in inflation as the primary driver for the increase, noting that inflation has increased strongly since mid-2025 and is likely to remain above the 2-3% target range for some time. The February 2026 Statement on Monetary Policy detailed that Australian households and businesses have been spending more, the jobs market remains strong, and the global economy has held up better than expected. The RBA’s goal is to deliver low and stable inflation and full employment.

The RBA’s decision, and the subsequent moves by banks, reflect a broader trend of tightening monetary policy in response to persistent inflationary pressures. While the rate increases are unwelcome news for borrowers, they offer a welcome boost to savers who have faced historically low interest rates in recent years. The speed and extent of further rate increases will depend on future inflation data and the overall performance of the Australian economy.

Looking Ahead: The RBA has scheduled its next board meeting for April 2-3, 2026. Further adjustments to the cash rate will depend on incoming economic data, particularly inflation figures and employment numbers. Savers should continue to monitor rates offered by different institutions and compare options to maximize their returns.