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ANZ cuts the rate on its Online Saver for the first time in 19 months

Eden Radford avatar
Eden Radford
- 5 min read
ANZ cuts the rate on its Online Saver for the first time in 19 months

ANZ, the country’s fourth largest bank, has today cut the ongoing rate on its ANZ Online Saver account by 0.10 percentage points.

This means existing customers who have had their account for more than three months will now be earning just 1.50 per cent on their hard-earned cash.

This is the first time ANZ has cut the rate on this account since March 2022. It’s also the first time any big four bank has cut a rate on a savings account in this period.

Today’s change to ANZ’s Online Saver

Old RateNew RateChange % pts
3.40% for 3 mths then 1.60%3.30% for 3 mths then 1.50%-0.10

Source: RateCity.com.au

Today’s hike is at odds with the bank’s decision on 12th October to increase the rate on one of its other savings accounts, ANZ Plus Save, by 2.00 percentage points for balances over $250,000. That said, the rate for these customers with large balances is still a relatively lacklustre 3.50 per cent.

ANZ’s move today is somewhat out of the blue. Savings rates have been relatively quiet since the last cash rate hike, however the RateCity database shows more banks are now cutting rates than hiking them. In the past two months:

  • 14 per cent of banks have cut at least one savings rate, while -
  • 8 per cent of banks have hiked at least one savings rate.

ANZ’s cut to the ongoing rate on its Online Saver will be a blow to customers with this account, but it does not push Westpac off its pedestal for the title of the big four bank with the lowest ongoing rate. Unfathomably, Westpac’s eSaver account offers a lower ongoing rate at just 1.10 per cent.

While the big four banks’ online saver rates are fiercely uncompetitive, customers can, and should, do better.

Even among the big banks, Westpac is offering young adults savings rates as high as 5.20 per cent, while ANZ is offering rates of 4.65 per cent with no terms and conditions on its ANZ Plus Save account for balances under $250,000.

Beyond the big four banks, customers can achieve ongoing savings rates as high as 5.65 per cent.

Big four bank savings account rates

BONUS SAVERS
AccountMax rateConditions for max rate
CBA GoalSaver4.65%Grow balance each mth
Westpac Life4.75%Grow balance each mth
NAB Reward Saver4.75%1 deposit, no withdraw / mth
ANZ Progress Saver4.25%$10+ dep, no withdraw/mth
ONLINE SAVERS
AccountRateConditions for max rate
CBA NetBank Saver4.75% for 5 mths then 2.20%No conditions
Westpac eSaver4.75% for 5 mths then 1.10%No conditions
NAB iSaver4.75% for 4 mths then 2.00%No conditions
ANZ Online Saver3.30% for 3 mths then 1.50%No conditions
OTHER
AccountMax rateConditions for max rate
ANZ Plus Save (15 yrs+)4.65%None
Westpac Spend&Save

(18-29 yrs)

5.20%Grow bal each mth. 5+ purchases on linked account.

Source: RateCity.com.au.

Highest ongoing savings rates (excludes kids accounts)

AccountMax ongoing rateMax balance for max rateConditions to achieve maximum rate
ME Bank HOMEMe5.65%$100,000Deposit $2k+ into linked account and grow savings balance each month.
ING Savings Maximiser5.50%$100,000Deposit $1k+ and make 5 transactions in linked bank account, plus grow savings balance each month.
BOQ Future Saver

(ages 14 – 35)

5.50%$50,000Deposit $1k+ and make 5 transactions in linked bank account per month. Conditions waived if under 18.
MOVE Bank Growth Saver5.50%$25,000Deposit $200 and make no withdrawals per month.
Teachers Mutual Bank Target Saver5.50%$5,000,000Deposit $1k+ into linked banked account, make no withdrawals per month.
Great Southern Bank Goal Saver (ages 18 – 24)5.35%$50,000Deposit $500+ and make 5 transactions in linked bank account per month.
Virgin Money Boost Saver5.35%$250,000Deposit $1k+ into linked account, make 5 transactions each month, and provide 32 days’ notice to withdraw money.

Source: RateCity.com.au

RateCity.com.au research director, Sally Tindall, said: “ANZ has sliced its Online Saver rate today in a move that is likely to leave thousands of customers completely stumped.”

“The cash rate has risen by 4 percentage points in the last year and a half. If the RBA moves in the next few months, it is likely to be up, not down, and yet, ANZ is cutting the ongoing Online Saver rate from a paltry 1.60 per cent to an even more ridiculous 1.50 per cent,” she said.

“The one silver lining to a high cash rate is that many savings rates have risen out of the doldrums. That’s not the case for anyone with an ANZ Online Saver, or anyone with a big bank online saver account for that matter.

“At a time when every dollar makes a difference, customers should make sure their savings rate starts with a ‘5’ not a ‘1’,” she said.

Compare savings accounts

Product database updated 22 Jun, 2024

This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.