ANZ Plus makes major change for savers

ANZ has made changes to its ANZ Plus Save account, slashing the ongoing rate to 0.50 per cent, unless customers grow their balance by $100 or more each month.

From today, new and existing ANZ Plus Save customers who meet the new condition will get a bonus 4.50 per cent, taking the maximum ongoing rate to 5.00 per cent.

Previously, the ongoing rate was 4.90 per cent on balances less than $250,000 and 3.75 per cent thereafter, with no strings attached.

ANZ has also introduced a new account today, the ANZ Plus Flex Saver, with an ongoing rate of 5.00 per cent for balances under $5,000 and 2.00 per cent above that.

ANZ Plus Save changes – effective today

Source: RateCity.com.au

Today’s move from ANZ follows Westpac’s decision last month to adjust the rates on its Life savings account – cutting the base rate by 0.15 percentage points and increasing the bonus rate by the same amount.

As a result, Westpac Life customers still earn a maximum rate of 5.00 per cent, but only if they grow their balance each month.

However, not all Australians do earn the maximum interest on their savings.

In December last year, the ACCC handed down the final report from its Retail deposits inquiry, which revealed that in the first six months of 2023, on average 71 per cent of bonus interest accounts did not receive bonus interest in any given month.

What is a decent rate now?

The RateCity.com.au database shows over 60 banks have at least one ongoing savings rate above 3.50 per cent.

• 126 savings accounts have a rate over 3.50% for all adults.
• 6 savings accounts have a rate over 3.50% for young adults.
• The highest ongoing savings rate is 6.00% for balances of $50K-$100K (see table at end for highest rates).

RateCity.com.au money editor, Laine Gordon, said: “This move from ANZ is a double-edged sword for savers.”

“People who can squirrel away an extra $100 or more each month into their ANZ Plus Save account will be rewarded with a rate hike. Others who can’t squeeze any extra savings from their budget, however, will see their savings goals take a major hit,” she said.

“Keen savers can now get ongoing rates of 5 per cent or even higher, however, customers would do well to read the fine print. The majority of these high interest accounts are riddled with specific conditions that can send your monthly interest into a black hole the moment you miss a step.

“If you are in the market for a new savings account, look for one that fits in with your finances. If the monthly terms and conditions are hurdles you can’t jump easily, then instead look for something that better suits your lifestyle,” she said.

Highest ongoing savings rates

Excludes kids and young adult accounts

Source: RateCity.com.au.

Highest ongoing savings rates (no strings attached)

Excludes introductory rates, kids and young adult specific accounts

Source: RateCity.com.au. * Includes an intro rate of 5.35% on balances up to $250K for first 4 mths. 

**Available until 31 January 2025.

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