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Westpac, ANZ adjust savings rates
Westpac has adjusted the rates on its Life savings accounts, dropping the base rates by 0.15 percentage points and lifting the bonus rates by the same amount.
The Westpac’s eSaver and Bump rates remain unchanged.
Changes to Westpac Life
Old rate | New rate | Change | |
Max rate | 5.00% | 5.00% | No change |
Base rate | 2.00% | 1.85% | -0.15% |
Bonus rate | 3.00% | 3.15% | +0.15% |
Source: RateCity.com.au. Note: conditions and balance caps apply for maximum rate on select accounts.
Changes to Westpac Life Spend&Save for 18-29 year olds
Old rate | New rate | Change | |
Max rate | 5.20% | 5.20% | No change |
Base rate | 2.00% | 1.85% | -0.15% |
Bonus rate | 3.00% | 3.15% | +0.15% |
Spend%Save bonus (up to $30K) | 0.20% | 0.20% | No change |
Source: RateCity.com.au. Note: conditions and balance caps apply for maximum rate on select accounts.
ANZ savings rate changes
Last Friday, ANZ adjusted the rates on its Online Saver account; increasing the introductory bonus rate by 0.10 percentage points for new customers, but only for 3 months.
The base rate, however, has dropped by 0.10 percentage points to 1.40 per cent ongoing.
ANZ Progress saver rates remain unchanged.
Changes to ANZ Online Saver – effective 13th September
Old rate | New rate | Change | |
Max rate (3 months) | 3.65% | 3.65% | N/A |
Intro bonus rate (3 months) | 2.15% | 2.25% | +0.10 |
Ongoing rate | 1.50% | 1.40% | -0.10% |
Source: RateCity.com.au. Note: intro rate for new customers only.
Analysis from RateCity.com.au shows since 1 January this year, 33 banks have cut at least one savings rate, including Westpac, ANZ, Macquarie, HSBC and BoQ.
However, there are still some decent ongoing savings rates for those willing to shop around.
The RateCity.com.au database shows over 60 banks have at least one ongoing savings rate above the monthly inflation indicator rate of 3.5 per cent.
- 128 savings accounts have a rate over 3.5% for all adults
- 6 savings accounts have a rate over 3.5% for young adults.
Money in the bank just hit a new record high in the latest APRA data for July 2024, with the total amount saved in the bank from households now at $1.50 trillion.
Note: deposits from households include term deposits, transaction accounts, mortgage offset accounts and savings accounts on the books of authorised deposit-taking institutions (ADIs).
Total deposits by households, July 2024
Amount | Monthly change | Year-on-year change | Since start of hikes |
$1.50 trillion Record high | +$30.81 billion | +$110.69 billion | +$230.20 billion |
Source: APRA monthly authorised deposit-taking institution statistics.
RateCity.com.au money editor, Laine Gordon, said: “When it comes to savings accounts, some of the biggest banks are battening down the hatches.”
“The banks are getting smashed with ballooning deposit books. These cuts are designed to protect their profit margins,” she said.
“Latest APRA data shows Australians have a record $1.50 trillion in household deposits in July. Banks will be trying to put a lid on how much interest they have to fork out.
“It’s a grim outlook for Australians with savings in the bank, as they stare down the barrel of potential rate cuts next year.
“There are still more than 60 banks offering ongoing savings rates above the monthly CPI indicator rate at 3.5 per cent. So if your hard-earned savings aren’t working hard enough for you, then consider switching to an account that will,” she said.
Highest ongoing savings rates
Excludes kids and young adult accounts
Max rate | Base Rate | Balance cap for max rate | Max Rate Conditions | |
ME Bank HomeME | 5.55% | 0.55% | $100K | Deposit $2K into linked transaction account + grow savings balance. |
MOVE Bank Growth Saver | 5.50% | 0.10% | $25K | Deposit $200 and make no withdrawals in savings account. |
ING Savings Maximiser | 5.50% | 0.55% | $100K | Deposit $1K and make 5+ eligible transactions + grow savings balance |
ubank Save Account | 5.50% | 0.00% | $100K | Deposit $500 into ubank savings or transaction account |
Rabobank Premium Saver | 5.45% | 1.50% | $250K | Grow savings balance by $200 a month. |
Source: RateCity.com.au.
Highest ongoing savings rates (no strings attached)
Excludes introductory rates, kids and young adult specific accounts
Bank | Max rate | Balance cap |
The Mutual Bank Internet Saver | 6.00% | $50K - $100K |
Australian Unity Freedom Saver | 5.20% | $50K |
ANZ Plus Save | 4.90% | $250K |
BoQ Simple Saver | 4.85% | $5M |
Macquarie Savings account* | 4.75% | $250K - $1M |
Source: RateCity.com.au. * Includes an intro rate of 5.35% on balances up to $250K for first 4 mths.
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Product database updated 29 Sep, 2024
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