You’ve probably noticed that interest rates have been moving a lot lately. Whether you’re saving for a goal or paying off a home loan, understanding what Westpac offers right now can help you make smarter decisions. In August 2025, the bank cut its bonus savings rate to 4.25% after the RBA lowered the cash rate to 3.60% (Westpac media release (Aug 2025)). This guide walks through Westpac’s current savings, home loan, and term deposit rates, with step-by-step tips and a look at what the RBA’s moves mean for your money.
Westpac bonus savings rate (max): 4.75% p.a. (Jan 2025) · Westpac standard variable savings rate: 0.10% p.a. · Westpac 1-year term deposit rate: 3.50% p.a. · RBA cash rate target: 4.10% p.a. (Feb 2025, per RBA Monetary Policy)
Quick snapshot
- Westpac bonus savings rate reached 4.75% in Jan 2025 (Westpac May 2026 release)
- Home loan variable rates fell by 0.25% in Aug 2025 (Westpac Aug 2025 release)
- Term deposit rates range from 1.40% (1 month) to 3.50% (12 months) (Westpac Term Deposit page)
- Feb 2025: RBA holds at 4.10% (RBA)
- Aug 2025: RBA cuts to 3.60% (Westpac)
- Feb 2026: Westpac hikes home loan rates 0.25% (Westpac)
- Markets expect more RBA cuts in late 2025 (RBA)
- Westpac may adjust rates after each RBA decision (RBA)
Key facts at a glance
| Current RBA cash rate | 4.10% (as of Feb 2025) |
|---|---|
| Westpac bonus savings rate | 4.75% p.a. (Jan 2025), later dropped to 4.25% (Aug 2025) |
| Westpac 1-year term deposit rate | 3.50% p.a. |
| Westpac variable home loan rate (owner-occupier) | 6.14% p.a. (before Aug 2025 cut |
| Westpac 55+ account rate | 0.10% p.a. |
What are Westpac’s current interest rates?
Westpac savings account interest rates
Westpac offers several savings accounts, each with a different rate structure. The flagship Westpac Life account pays a bonus rate of 4.75% p.a. (as of Jan 2025, later reduced to 4.25% in August 2025 per Westpac media release (Aug 2025)). To earn the bonus, you must deposit at least $30 per month and make no withdrawals. The standard variable rate is just 0.10% p.a., so the bonus is essential.
The bonus rate looks impressive, but if you need to access your money during the month, you lose the bonus. This rewards disciplined savers but penalises anyone who dips in.
The implication: Savers who need flexibility must accept a much lower base rate if they break the rules.
Westpac home loan interest rates
Before the August 2025 rate cut, Westpac’s variable home loan rate for owner-occupiers (LVR ≤ 80%) was 6.14% p.a. The bank cut rates by 0.25% following the RBA’s move (Westpac). For fixed terms, the 1-year standard rate is 6.69% p.a., and with a package and LVR discount (up to 70% LVR) it drops to 6.39% p.a. (Westpac Home Loan Rates). The 2-year fixed rate stands at 6.59% p.a. standard.
What this means: Borrowers saw a short-lived reprieve in August 2025, but the Feb 2026 hike reversed those gains for many variable-rate holders.
Westpac term deposit interest rates
Westpac’s term deposit rates range from 1.40% p.a. for a 1-month term up to 3.50% p.a. for a 12-month term, with a minimum deposit of $5,000 (Westpac Term Deposit page). These rates have not changed recently, but they remain well below the bonus savings rate.
Bottom line: Westpac’s best savings deal is the bonus rate on Westpac Life, but it comes with strict conditions. Home loan borrowers saw a small relief in August 2025, while term deposits offer stability at modest returns.
What is the interest rate for term deposits at Westpac?
Current Westpac term deposit rates by term
Westpac’s term deposit rates vary by term length. One pattern emerges: the longer the term (up to 12 months), the higher the rate, but all remain below the bonus savings rate. Here’s the full breakdown from the bank’s official page (Westpac):
Seven terms, one trend: rates climb from 1.40% at 1 month to 3.70% at 6 months, then top out at 3.50% for 12 months.
| Term | Rate (p.a.) |
|---|---|
| 1 month | 1.40% |
| 2 months | 1.60% |
| 3 months | 3.20% |
| 4 months | 3.35% |
| 5 months | 3.55% |
| 6 months | 3.70% |
| 7 months | 3.70% |
| 8 months | 3.75% |
| 9 months | 3.70% |
| 10 months | 3.60% |
| 11 months | 3.45% |
| 12 months | 3.50% |
The pattern: The 8-month term tops the scale at 3.75%, but the 6-month term at 3.70% offers nearly as much with earlier access to funds.
Bottom line: The 8-month term deposit offers the highest rate (3.75%), but the 6-month term (3.70%) is nearly as good with earlier access. Neither beats the Westpac Life bonus savings rate, so term deposits suit savers who want a guaranteed rate without monthly conditions.
How to open a Westpac term deposit
You can open a term deposit online through Westpac Online Banking, by calling the bank, or in person. You’ll need a minimum of $5,000 and choose a term from the table above. The interest can be paid monthly or at maturity.
Westpac term deposit calculator
Westpac does not offer a public term deposit calculator on its website (Westpac). However, you can easily calculate interest by multiplying the deposit amount by the rate and term (simple interest for terms under 12 months).
How do I manage my term deposit online with Westpac?
Step-by-step: log in to Westpac Online Banking
- Go to westpac.com.au and click Log on.
- Enter your Customer Registration Number (CRN) and password.
- Under the Accounts tab, select your term deposit to view balance, interest earned, and maturity date.
How to view term deposit statements
Once logged in, navigate to eStatements from the menu. You can download monthly or annual statements for your term deposit account. Interest is typically credited on maturity or monthly if you chose that option.
How to set up maturity instructions
Westpac allows you to set maturity instructions online: roll over the full amount (with or without interest) or pay out to a nominated Westpac account. To change instructions, go to Services > Term deposit maturity instructions (Westpac). Make changes at least one business day before the maturity date.
What is the interest rate on a Westpac 55+ and retired account?
Westpac 55+ account features and rates
The Westpac 55+ account is an everyday transaction account for customers aged 55 and over. It pays a variable rate of 0.10% p.a. on balances up to $100,000 (Westpac 55+ page). There is no monthly account fee. However, the 0.10% rate is extremely low compared to savings accounts, so it’s best used for transactions, not savings.
Comparison with other everyday accounts
Most Westpac everyday accounts (e.g., Westpac Choice) pay 0.00% p.a. The 55+ account at 0.10% is slightly better but still negligible. For savings, the Westpac Life account (bonus 4.75% p.a.) is far superior.
The catch: The 55+ account’s negligible rate means customers gain almost nothing by parking cash there, making it purely a transaction tool.
Which bank gives the highest interest rate on a savings account?
Comparison of top savings rates in Australia
Westpac’s 4.75% bonus rate is competitive, but several other banks offer higher rates. The table below compares Westpac with three other major institutions (rates as of early 2025, before the August cuts):
Four accounts, one surprise: the highest rate comes from ING, not the Big Four.
| Bank | Account | Bonus rate (p.a.) | Conditions |
|---|---|---|---|
| Westpac | Westpac Life | 4.75% | No withdrawals, $30/month deposit |
| ANZ | ANZ Save | 4.50% (or 4.65% with bonus | $1 deposit, no withdrawals |
| ING | Savings Maximiser | 5.00% | Deposit $1,500/month, 5 transactions |
| UBank | USaver | 5.10% | Deposit $200/month |
Sources: Westpac May 2026, ANZ Savings Rates, ING Savings Maximiser, UBank USaver.
The implication: Westpac’s rate is solid among Big Four banks, but savers willing to switch earn more at ING or UBank with less demanding criteria.
Bottom line: Westpac is competitive but not the top. If you can meet UBank or ING conditions, you’ll earn higher interest. For Big Four convenience, Westpac’s 4.75% is solid – but you must follow the rules.
Westpac vs ANZ vs other banks
ANZ’s Save account offers up to 4.65% with bonus (requires no withdrawals and $1 deposit). That’s slightly below Westpac. ING offers a 5% bonus rate with more demanding conditions (deposit $1,500/month and make 5 transactions). UBank offers 5.10% with a simple $200/month deposit. For savers who want a Big Four bank, Westpac’s rate is best among ANZ and Commonwealth (CBA’s bonus rate is 4.25%).
Will interest rates drop to 3% again?
Current RBA cash rate and expectations
The RBA cash rate has been at 4.10% since November 2023, and the board held it steady through February 2025 (RBA). Markets expect the first cut in late 2025, potentially bringing the cash rate to around 3.60% as seen in August 2025. A return to 3% is unlikely before 2027 due to persistent inflation.
Historical context of 3% mortgage rates
During 2020-2021, variable mortgage rates dipped below 2% for many borrowers. The era of 3% rates ended when the RBA began hiking in May 2022. Since then, rates have more than doubled. Even with cuts, returning to 3% would require the cash rate to fall by over 100 basis points from current levels, which the RBA has signaled is not imminent.
Expert forecasts for 2025-2026
According to RBA Governor Michele Bullock: “The board remains vigilant on inflation and will adjust policy as needed” (RBA Feb 2025 press conference). Most economists at Westpac and other banks forecast the cash rate to bottom out at 3.10-3.35% by early 2026, meaning mortgage rates may not fall below 5.5% before 2027.
What this means: Borrowers hoping for a return to the ultra-low rates of 2020-2021 face a long wait, possibly years.
How do I get 10% interest on my money?
Realistic high-return investments vs savings accounts
No major Australian bank offers 9.5% or 10% on standard deposits. The highest you can get from a bank is around 5-5.5% with conditions. To earn 10% or more, you typically need to invest in shares (dividends), peer-to-peer lending, or high-risk bonds. Those come with capital loss risk.
Risks of chasing 10% returns
Promises of 10% “guaranteed” returns are often scams. Even dividend stocks average 4-6% in Australia. If you see an offer for 10% on a “savings” product, check if it’s a fixed-income fund or high-yield bond – those can lose principal. The safest way to get 10% is to combine a decent savings rate with disciplined saving habits over time, not through a single product.
The catch: Any product promising 10% with low risk is almost certainly a scam or involves capital risk that could wipe out gains.
Timeline of Westpac rate changes
- Feb 2025: RBA holds cash rate at 4.10% for 12th consecutive meeting (RBA).
- Aug 2025: RBA cuts cash rate to 3.60%; Westpac reduces home loan variable rates by 0.25% and drops Westpac Life bonus rate to 4.25% (Westpac Aug 2025).
- Feb 2026: Westpac increases home loan variable rates by 0.25% after RBA raise (Westpac Feb 2026).
- May 202
Noah FraserStaff WriterJack Lawson is Senior Reporter at Reef Brief, covering breaking stories and explainers.