Aussie Savers Earn Near-6% on Cash as RBA Hikes Lure Higher Rates

Australian savers are now earning the highest returns on cash deposits in over a decade. After three consecutive Reserve Bank of Australia (RBA) cash rate increases in 2026, deposit rates have reversed their downward trend from last year.

The RBA raised its official interest rate from 3.60% in February to 4.35% in May, and has since kept it steady. As a result, leading savings accounts are now offering rates close to 6% per annum, while the best ongoing rate available without conditions is approximately 5.25%

On a balance of $50,000 with interest compounding monthly, the difference between these rates is material. At 5.25%, the account earns approximately $2,689 in the first year, compared to around $2,169 at last year's leading rate of 4.25%.

Jen Richardson, Founder of 123 Financial Group, notes that 'the gap between a market-leading rate and the default rate on an account opened a decade ago can run to thousands of dollars a year on a meaningful balance.' She urges savers to check what their bank is actually paying.