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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 Rate | New Rate | Change % 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 | ||
| Account | Max rate | Conditions for max rate |
| CBA GoalSaver | 4.65% | Grow balance each mth |
| Westpac Life | 4.75% | Grow balance each mth |
| NAB Reward Saver | 4.75% | 1 deposit, no withdraw / mth |
| ANZ Progress Saver | 4.25% | $10+ dep, no withdraw/mth |
| ONLINE SAVERS | ||
| Account | Rate | Conditions for max rate |
| CBA NetBank Saver | 4.75% for 5 mths then 2.20% | No conditions |
| Westpac eSaver | 4.75% for 5 mths then 1.10% | No conditions |
| NAB iSaver | 4.75% for 4 mths then 2.00% | No conditions |
| ANZ Online Saver | 3.30% for 3 mths then 1.50% | No conditions |
| OTHER | ||
| Account | Max rate | Conditions 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)
| Account | Max ongoing rate | Max balance for max rate | Conditions to achieve maximum rate |
| ME Bank HOMEMe | 5.65% | $100,000 | Deposit $2k+ into linked account and grow savings balance each month. |
| ING Savings Maximiser | 5.50% | $100,000 | Deposit $1k+ and make 5 transactions in linked bank account, plus grow savings balance each month. |
| BOQ Future Saver
(ages 14 – 35) | 5.50% | $50,000 | Deposit $1k+ and make 5 transactions in linked bank account per month. Conditions waived if under 18. |
| MOVE Bank Growth Saver | 5.50% | $25,000 | Deposit $200 and make no withdrawals per month. |
| Teachers Mutual Bank Target Saver | 5.50% | $5,000,000 | Deposit $1k+ into linked banked account, make no withdrawals per month. |
| Great Southern Bank Goal Saver (ages 18 – 24) | 5.35% | $50,000 | Deposit $500+ and make 5 transactions in linked bank account per month. |
| Virgin Money Boost Saver | 5.35% | $250,000 | Deposit $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.
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Product database updated 04 May, 2024
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