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Tough time for savers as the big four banks slash interest rates
ANZ is the last of the big four banks to cut their savings account rates, following the Reserve Bank’s decision to cut the cash rate earlier this month.
ANZ today reduced the rates on their Progress Saver and Online Saver accounts by 0.20 per cent – 2 basis points more than they passed onto their home loan customers on 14 June 2019.
As of today, ANZ still offers the highest ongoing savings rate out of the big four of 2.20 per cent, while Westpac offers the highest introductory rate of 2.31 per cent for a period of 5 months.
RateCity.com.au research director Sally Tindall said: “Introductory rates have become the white elephant of banking.”
“All four big banks have slashed their base rates to just 0.30 per cent interest, when inflation is sitting at 1.3 per cent. That’s a nightmare equation for anyone trying to save.
Conditional rate savings changes: Big4
Bank | Product | Max Rate Pre RBA | Max Rate Post RBA | Change | Conditions |
CBA | GoalSaver | 2.00% | 1.70% | 0.30% | Dep $200/mth, no withdraw, for bal $50K-$250K |
Westpac | Life | 2.30% | 2.10% | 0.20% | Make 1 dep/mth, balance higher at end of mth |
NAB | Reward Saver | 2.30% | 2.05% | 0.25% | 1 dep/mth, no withdrawals |
ANZ | Progress Saver | 2.40% | 2.20% | 0.20% | Deposit $10/mth, no withdrawals |
Intro rate savings changes: Big4
Bank | Product | Base rate Pre-RBA | Max rate Pre RBA | Base rate Post RBA | Max rate Post RBA | Total change | Intro term |
CBA | Netbank Saver | 0.50% | 2.51% | 0.30% | 2.20% | 0.31% | 5 mths |
Westpac | eSaver | 0.50% | 2.51% | 0.30% | 2.31% | 0.20% | 5 mths |
NAB | iSaver | 0.50% | 2.55% | 0.30% | 2.30% | 0.25% | 4 mths |
ANZ | Online Saver | 0.50% | 2.30% | 0.30% | 2.10% | 0.20% | 3 mths |
RateCity.com.au data shows that over 47 banks have dropped their savings rates since the RBA cash rate cut on June 4, including ING, AMP, Bank of Queensland, ME, Suncorp and Bendigo, in addition to the big 4 banks.
The average cut to savings account rates by banks who have moved is 0.23 per cent, while the maximum cut on the database is 0.50 per cent. As a result of all the changes, the average savings account rate on RateCity.com.au’s database is now 1.55 per cent*.
“There’s no sugar coating the outlook for savers right now. With at least one, if not two more cuts to the cash rate on the horizon, the average saving rate could fall to 1.30 per cent.
“Good saving rates might be hard to come by but it’s still worth shopping around,” she said.
Market leading saving account rates
Account | Max rate | Conditions |
UBank | 2.87% | Mthly deposit of $200, no withdraw |
BOQ | 2.75% | Deposit $1K into linked trans a month |
Endeavour Mutual Bank | 2.75% | For people up to 35 years, monthly deposit of $400 |
ME Bank | 2.60% | 1 tap & go payment/wk with linked account |
UBank has not cut this rate since the RBA cash rate change on June 4.
Conditional rates:
These are savings accounts that require the customer to meet certain conditions every month in order to get the maximum rate of interest on an ongoing basis.
Introductory rates
These are savings accounts where customers get a bonus interest rate for a short period of time when the account is first opened, typically between 3 and 5 months.
*RateCity.com.au’s average savings rate excludes kids accounts and intro rates. Where conditions are required to get the maximum interest, it assumes these conditions are met.
Disclaimer
This article is over two years old, last updated on June 26, 2019. 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 28 Nov, 2024
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