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Savers squeezed again as ANZ cuts rates
Australia’s fourth largest bank, ANZ, has today cut its bonus savings rates by 0.15 per cent and some term deposit rates by up to 0.25 per cent.
Analysis from RateCity shows almost 40 banks have cut at least one savings account rate since May 1, despite no move to the cash rate since March 19, 2020.
Seventy-six (76) per cent of all savings accounts on the RateCity.com.au database now have maximum rates under 1 per cent.
ANZ savings account rate cuts
- ANZ’s online saver’s introductory rate has been cut by 0.15 per cent to 0.80 per cent.
- ANZ’s Progress Saver’s bonus rate has been cut by 0.15 per cent. The maximum ongoing rate is now 0.85%.
- This is the third time ANZ has cut savings rates since March.
| ANZ online saver | Old rate | New rate | Difference |
| Intro rate (3 months) | 0.95% | 0.80% | -0.15% |
| Ongoing rate | 0.05% | 0.05% | No change |
| ANZ progress saver | Old rate | New rate | Difference |
| Max rate (if conditions are met) | 1.00% | 0.85% | -0.15% |
| Base rate | 0.01% | 0.01% | No change |
Note: deposit $10+ and no withdrawals to qualify for max rate each month.
ANZ term deposit rate cuts
- ANZ’s term deposit rates have been shaved today by up to 0.25 per cent.
- ANZ’s maximum term deposit rate is now 1.00% per cent for 8 months.
- A list of key cuts are outlined at the end of this release.
RateCity research director Sally Tindall said the banks are looking towards deposit rates to help balance their books.
“The latest APRA monthly banking statistics recorded a notable rise in deposits from households as people in lockdown put the brakes on their spending. This puts less pressure on the banks to put competitive deposit rates on the table,” she said.
“It’s disappointing to see deposit rates fall at a time when households are increasingly focused on building up rainy day funds, but the lack of competition between the bigger banks isn’t helping.
“People can still find decent returns for their savings if they look for them. The highest ongoing savings rate on RateCity's database is 1.85 per cent, offered by BOQ, 86 400 and Up.
“If enough people moved their savings to more competitive banks, the big four would probably be forced to take notice,” she said.
Big four bank standard savings accounts
| Bank | Product | Intro rate | Ongoing rate | Intro term |
| CBA | NetBank Saver | 1.05% | 0.05% | 5 mths |
| Westpac | eSaver | 1.05% | 0.05% | 5 mths |
| NAB | iSaver | 1.05% | 0.05% | 4 mths |
| ANZ | Online Saver | 0.80% | 0.05% | 3 mths |
Big four banks conditional savings accounts
| Bank | Product | Base rate | Max rate | Conditions |
| CBA | Goal Saver | 0.10% | 0.50% | Deposit $200+/mth, no withdrawals. |
| Westpac | Life | 0.40% | 1.05% | Balance needs to be higher every mth |
| NAB | Reward Saver | 0.05% | 1.00% | 1+ deposit and no withdrawals per mth |
| ANZ | Progress Saver | 0.01% | 0.85% | Deposit $10+/mth, no withdrawals |
Note: based on a balance of less than $50K. CBA has higher rates for higher amounts.
Highest standard savings account rates on RateCity database
| Bank | Account | Intro rate | Intro term | Ongoing Rate | Notes | |
| Macquarie Bank | Savings Account | 2.26% | 4 months | 1.35% | On balances up to $250K | |
| Rabobank | High Interest Savings | 2.25% | 4 months | 0.80% | On balances up to $250K | |
| AMP Bank | Saver Account | 2.20% | 6 months | 1.05% | On balances up to $250K |
Source: RateCity.com.au. Rates accurate as of 11.06.2020
Highest conditional savings account rates on RateCity database
| Bank | Max rate | Base rate | Conditions for max rate |
| Bank of Queensland | 1.85% | 0.20% | Deposit $1k+ per month and make at least 5 eligible transactions |
| 86 400 | 1.85% | 0.25% | Deposit $1k+ per month |
| Up | 1.85% | 0.10% | Make at least 5 eligible transactions |
Source: RateCity.com.au. Rates accurate as of 11.06.2020
ANZ advance notice term deposit changes(select changes only)
| Term | Old rate | New rate | Change |
| 6 months | 0.90% | 0.75% | -0.15% |
| 12 months | 1.00% | 0.85% | -0.15% |
| 24 months | 1.00% | 0.85% | -0.15% |
| 36 months | 1.00% | 0.85% | -0.15% |
| 48 months | 1.00% | 0.85% | -0.15% |
| 60 months | 1.01% | 0.90% | -0.11% |
ANZ standard term deposit changes(select changes only)
| Term | Old rate | New rate | Change |
| 6 months | 0.40% | 0.20% | -0.20% |
| 12 months | 0.45% | 0.25% | -0.20% |
| 24 months | 0.70% | 0.45% | -0.25% |
| 36 months | 0.70% | 0.45% | -0.25% |
| 48 months | 0.70% | 0.45% | -0.25% |
| 60 months | 0.80% | 0.55% | -0.25% |
Disclaimer
This article is over two years old, last updated on June 11, 2020. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent savings accounts articles.
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Product database updated 26 Nov, 2024
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