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Savers squeezed again as ANZ cuts rates

Savers squeezed again as ANZ cuts rates

Australia’s fourth largest bank, ANZ, has today cut its bonus savings rates by 0.15 per cent and some term deposit rates by up to 0.25 per cent.

Analysis from RateCity shows almost 40 banks have cut at least one savings account rate since May 1, despite no move to the cash rate since March 19, 2020.

Seventy-six (76) per cent of all savings accounts on the RateCity.com.au database now have maximum rates under 1 per cent.

ANZ savings account rate cuts

  • ANZ’s online saver’s introductory rate has been cut by 0.15 per cent to 0.80 per cent.
  • ANZ’s Progress Saver’s bonus rate has been cut by 0.15 per cent. The maximum ongoing rate is now 0.85%.
  • This is the third time ANZ has cut savings rates since March.
ANZ online saver Old rate New rate Difference 
Intro rate (3 months) 0.95% 0.80% -0.15% 
Ongoing rate 0.05% 0.05% No change 

ANZ progress saver Old rateNew rate Difference 
Max rate (if conditions are met) 1.00%  0.85%-0.15% 
Base rate 0.01% 0.01% No change

Note: deposit $10+ and no withdrawals to qualify for max rate each month.

ANZ term deposit rate cuts

  • ANZ’s term deposit rates have been shaved today by up to 0.25 per cent.
  • ANZ’s maximum term deposit rate is now 1.00% per cent for 8 months.
  • A list of key cuts are outlined at the end of this release.

RateCity research director Sally Tindall said the banks are looking towards deposit rates to help balance their books.

“The latest APRA monthly banking statistics recorded a notable rise in deposits from households as people in lockdown put the brakes on their spending. This puts less pressure on the banks to put competitive deposit rates on the table,” she said.

“It’s disappointing to see deposit rates fall at a time when households are increasingly focused on building up rainy day funds, but the lack of competition between the bigger banks isn’t helping.

“People can still find decent returns for their savings if they look for them. The highest ongoing savings rate on RateCity's database is 1.85 per cent, offered by BOQ, 86 400 and Up.

“If enough people moved their savings to more competitive banks, the big four would probably be forced to take notice,” she said.

Big four bank standard savings accounts

Bank Product Intro rate Ongoing rate Intro term 
CBANetBank Saver1.05%0.05%5 mths
Westpac eSaver 1.05% 0.05% 5 mths 
 NABiSaver 1.05% 0.05% 4 mths 
ANZ Online Saver 0.80% 0.05% 3 mths

Big four banks conditional savings accounts

BankProductBase rate Max rateConditions
CBAGoal Saver

0.10%

0.50%

Deposit $200+/mth, no withdrawals.
WestpacLife

0.40%

1.05%

Balance needs to be higher every mth
NABReward Saver

0.05%

1.00%

1+ deposit and no withdrawals per mth
ANZProgress Saver

0.01%

0.85%

Deposit $10+/mth, no withdrawals

Note: based on a balance of less than $50K. CBA has higher rates for higher amounts.

Highest standard savings account rates on RateCity database

BankAccountIntro rateIntro termOngoing RateNotes
Macquarie BankSavings Account2.26%4 months1.35%On balances up to $250K
RabobankHigh Interest Savings2.25%4 months0.80%On balances up to $250K
AMP BankSaver Account2.20%6 months1.05%On balances up to $250K

Source: RateCity.com.au. Rates accurate as of 11.06.2020

Highest conditional savings account rates on RateCity database

BankMax rateBase rateConditions for max rate
Bank of Queensland1.85%0.20%Deposit $1k+ per month and make at least 5 eligible transactions
86 4001.85%0.25%Deposit $1k+ per month
Up1.85%0.10%Make at least 5 eligible transactions

Source: RateCity.com.au. Rates accurate as of 11.06.2020

ANZ advance notice term deposit changes(select changes only)

TermOld rateNew rateChange
6 months

0.90%

0.75%-0.15%
12 months

1.00%

0.85%-0.15%
24 months

1.00%

0.85%-0.15%
36 months

1.00%

0.85%-0.15%
48 months

1.00%

0.85%-0.15%
60 months

1.01%

0.90%-0.11%

ANZ standard term deposit changes(select changes only)

TermOld rateNew rateChange
6 months

0.40%

0.20%-0.20%
12 months

0.45%

0.25%-0.20%
24 months

0.70%

0.45%-0.25%
36 months

0.70%

0.45%-0.25%
48 months

0.70%

0.45%-0.25%
60 months

0.80%

0.55%-0.25%

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

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