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ANZ the second big bank to cut savings post RBA

ANZ the second big bank to cut savings post RBA

19 Nov, 2020 - 3 min read

ANZ the second big bank to cut savings post RBA

ANZ has today cut rates on its popular savings, term deposit and pensioner accounts by up to 0.20 per cent.

To date, 28 banks have cut savings rates on the back of the RBA cut on 3 November, including big four banks CBA and now ANZ.

The average ongoing savings rate on RateCity.com.au is now just 0.46 per cent and is set to fall further as cuts keep coming.

KEY ANZ CUTS

ANZ Online saver

	Before	Today	Difference
Intro Rate (3 mths)	0.65%	0.45%	-0.20%
Ongoing rate	0.05%	0.05%	0%

ANZ Progress Saver

	Before	Today	Difference
Max rate	0.70%	0.50%	-0.20%
Base rate	0.01%	0.01%	0%

Deposit $10+ and make no withdrawals per mth for max rate.

RateCity.com.au research director, Sally Tindall, said: “Today’s cuts from ANZ will be a hard pill to swallow for customers relying on the interest they earn from their savings accounts.”

“The bank has refrained from cutting its base rates, which is a small blessing, but regular savers who do the right thing to qualify for the maximum rates are going to find their interest has been slashed,” she said.

“It’s now only a matter of time before Westpac and NAB drop savings rates.

“It’s not easy operating in a low rate environment where profit margins are feeling the squeeze, but there aren’t many winners on the back of this month’s rate cut. Savers have taken a hit, most mortgage customers are unlikely to get relief and credit cards rates haven’t moved a muscle.

“If you have your savings with a big four bank, you’d do well to turn your back on their sinking rates and move to higher ground,” she said.

Big four banks conditional savings rates

Bank	Account	Max rate (if conditions met)
CBA	GoalSaver	0.45%
Westpac	Life	0.75%
NAB	Reward Saver	0.70%
ANZ	Progress Saver	0.50%

Source: RateCity.com.au. Note rates are for balances under $50K.

Big four bank: standard savings rates

Bank	Account	Intro rate	Ongoing rate
CBA	NetBank Saver (5 mths)	0.60%	0.05%
Westpac	eSaver (5 mths)	0.75%	0.05%
NAB	iSaver (4 mths)	0.75%	0.05%
ANZ	Online Saver (3 mths)	0.45%	0.05%

Source: RateCity.com.au

Highest ongoing savings rates

Bank	Max rate	Conditions
MyState	1.50%	Deposit $20+ and make 5 trans per mth
ING	1.35%	Deposit $1,000+ and 5 card purchases per mth
UBank	1.31%	Deposit $200+ per mth

Source: RateCity.com.au
Note: Excludes accounts specifically for younger Australians.

Disclaimer

This article is over two years old, last updated on November 19, 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 Apr, 2024

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

Laine Gordon

Head of Public Relations

Laine Gordon is the Head of Public Relations at RateCity and an experienced journalist and research specialist. With a background in news and feature writing, covering finance, media and even food (a passion of hers) at Reed Elsevier publications, Laine brings almost two decades of experience to the team. Having covered major areas of interest to the general public from hip pocket issues to rising and falling interest rates and the impact to mortgages, credit and saving in Australia, she is passionate about researching and telling people’s stories to help others make better decisions about their own finances.