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ANZ the 37th bank to cut savings rates in the last two months

ANZ the 37th bank to cut savings rates in the last two months

Australia’s fourth largest bank, ANZ, has today cut the interest rates on its popular savings accounts by 0.10 per cent.

Progress saver(adults and kids)

Old rateNew rateChange
Max rate

0.35%

0.25%

-0.10%

Base rate

(if monthly conditions aren’t met)

0.01%

0.01%

0.00%

Note: make at least one deposit of $10+ and no withdrawals in a month for max rate.

Online saver

Old rateNew rateChange

0.30% for 3 months then 0.05%

0.20% for 3 months then 0.05%

-0.10%

In just under a year, the bank has dropped its savings rates by up to 0.45 per cent, while the cash rate has only fallen by 0.15 per cent.

ANZ savings rates – then and now

Max rate

1 Nov 2020

Max rate

Today

Change
Progress Saver

0.70%

0.25%

0.45%

Online saver

0.65% for 3 months, then 0.05%

0.20% for 3 months, then 0.05%

0.45%

Cash rate

0.25%

0.10%

-0.15%

Source: RateCity.com.au

RateCity.com.au analysis shows:

  • 37 banks have cut at least one savings rate in the last two months, including big four banks CBA, Westpac and now ANZ.
  • 0.30% is the average ongoing savings rate for adults.
  • 1.35% is the highest ongoing rate for all adults.
  • 12 banks still have an ongoing savings rate of 1 per cent or more.

Sally Tindall, RateCity.com.au research director, said ANZ had joined a growing list of banks cutting savings rates, despite no move to the cash rate in almost 12 months.

“These cuts today from ANZ means it now has the lowest savings rates out of the big four banks,” she said.

“However, ANZ is not acting in isolation. A total of 37 banks have cut at least one savings rate in the last two months, including big four banks CBA and Westpac.

“Most banks aren’t interested in attracting more savings customers because they just don’t want or need them.

“Savings rates are at an all-time low, yet money in the bank is at an all-time high. Savers are feeling the brunt of the banks’ complete nonchalance

“The latest APRA statistics show there are $1.17 trillion in household deposits - an increase of $99 billion in the last year and $204 billion in the last two years,” she said.

Big four bank: conditional savings rates

BankAccountMax rate
CBAGoalSaver

0.30%

WestpacLife

0.30%

NABReward Saver

0.30%

ANZProgress Saver

0.25%

Source: RateCity.com.au. Conditions apply for max rate.

Big four banks standard savers

BankProductIntro rate (3-5 mths)Ongoing rate
CBANetBank Saver

0.33%

0.05%

WestpaceSaver

0.30%

0.05%

NABiSaver

0.35%

0.05%

ANZOnline Saver

0.20%

0.05%

Source: RateCity.com.au Intro rate terms - CBA & Westpac 5 months, NAB 4 months, ANZ 3 months.

Highest ongoing savings accounts (no age restrictions)

BankMax rate
ING

1.35%

Virgin Money

1.50% for 3 months, then 1.20%

86 400

1.20%

Source: RateCity.com.au. $25k balance. Conditions apply for max interest rate.

Young Adults: highest ongoing savings rates

BankAccountMax rate
Westpac LifeAges 18 to 29 (up to $30K)

2.50%

BOQ Fast Track StarterAges 14 to 24 (up to $10K)

2.50%

Source: RateCity.com.au. Conditions apply for max interest rate.

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This article was reviewed by Senior Finance Writer Liz Seatter before it was published as part of RateCity's Fact Check process.

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