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 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 rate New 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 
CBA NetBank Saver 1.05% 0.05% 5 mths
Westpac  eSaver  1.05%  0.05%  5 mths 
 NAB iSaver  1.05%  0.05%  4 mths 
ANZ  Online Saver  0.80%  0.05%  3 mths

Big four banks conditional savings accounts

Bank Product Base rate Max rate Conditions
CBA Goal Saver



Deposit $200+/mth, no withdrawals.
Westpac Life



Balance needs to be higher every mth
NAB Reward Saver



1+ deposit and no withdrawals per mth
ANZ Progress Saver



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

Bank Account Intro rate Intro term Ongoing Rate Notes  
Macquarie Bank Savings Account 2.26% 4 months 1.35% On balances up to $250K  
Rabobank High Interest Savings 2.25% 4 months 0.80% On balances up to $250K  
AMP Bank Saver Account 2.20% 6 months 1.05% On balances up to $250K  

Source: Rates accurate as of 11.06.2020

Highest conditional savings account rates on RateCity database

Bank Max rate Base rate Conditions for max rate
Bank of Queensland 1.85% 0.20% Deposit $1k+ per month and make at least 5 eligible transactions
86 400 1.85% 0.25% Deposit $1k+ per month
Up 1.85% 0.10% Make at least 5 eligible transactions

Source: Rates accurate as of 11.06.2020

ANZ advance notice term deposit changes (select changes only)

Term Old rate New rate Change
6 months


0.75% -0.15%
12 months


0.85% -0.15%
24 months


0.85% -0.15%
36 months


0.85% -0.15%
48 months


0.85% -0.15%
60 months


0.90% -0.11%

ANZ standard term deposit changes (select changes only)

Term Old rate New rate Change
6 months


0.20% -0.20%
12 months


0.25% -0.20%
24 months


0.45% -0.25%
36 months


0.45% -0.25%
48 months


0.45% -0.25%
60 months


0.55% -0.25%

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Learn more about savings accounts

What is the interest rate on savings accounts?

As banks frequently change their rates, the most accurate way to look at interest rates on savings accounts is to use a savings accounts comparison tool. When you look at the savings rate check what the maximum and minimum rates are. Often banks will offer you a promotional rate for the first few months which is competitive, but then revert back to a base rate which can sometimes be less than inflation. Ongoing bonus rates are often a safer bet as they will keep rewarding you with the maximum rate, provided you meet their criteria

Who has the highest interest rates for savings accounts?

As banks frequently change their rates, the most accurate way to know who currently has the highest interest rate is to use a savings account comparison tool.

How to make money with a savings account?

Savings accounts make you money by earning interest on your savings. The more money you deposit, the longer you leave it in the account, and the higher the account’s interest rate, the more interest you’ll be paid by the bank or financial institution, and the more your wealth will grow.

To make sure your savings account makes money and doesn’t lose money, it’s important to maintain a large enough minimum balance that the annual interest earned exceeds any annual fees charged on the account.

Can you have a joint savings account?

Yes. Joint savings accounts can be useful for two or more people wanting to combine their savings to meet shared financial goals, including spouses, flatmates and business partners.

Some joint savings accounts require all parties to sign before they can access the money. While less convenient, this extra security can help encourage all parties to meet their shared financial goals.

Other joint savings accounts allow any of the account holders to access the money. These accounts can be convenient for financially responsible couples that trust one another implicitly. 

How can I get a $4000 loan approved?

While personal loans and medium amount loans don’t offer guaranteed approval, there are steps you can take to help increase the likelihood of your application being approved, including:

  • Fulfilling the eligibility criteria (providing ID, proof of residency, proof of income etc.)
  • Checking your credit history (you can order one free copy of your credit file per year, and make sure that there aren’t any errors that may be bringing down your credit score)
  • Comparing carefully before applying (making multiple loan applications can mean having your credit checked multiple times, which can look bad to some lenders and reduce your chances of being approved by them)

What is a good interest rate for a savings account?

A good rule of thumb to keep in mind with savings accounts is to look for a rate that is higher than the CPI inflation rate. This number is constantly changing, so check the Reserve Bank of Australia’s page. If you aren’t earning interest above this then the value of your money will go backwards over time.

Can I overdraft my savings account?

A lot of savings accounts won’t let you overdraw. Some will allow this feature but you’ll need to apply first. It’s best to read the fine print and check with your lender whether this is a feature they offer. It can be a helpful addition, but as your lender can charge you a fee as well as interest for going into negative numbers, it’s best to avoid overdrafting when possible.

What is a savings account?

A savings account is a type of bank account in which you earn interest on the money you deposit. This makes it one of the easiest and safest investment tools.

Can you set up a savings account online?

Yes. Several large and small banks offer online applications for savings accounts, and there are also online-only financial institutions to consider.

Online-only savings accounts are often less expensive than other savings accounts, though they may not offer the same flexibility, features, or face-to-face service as more traditional savings accounts.

How to open a savings account for my child?

Some banks and financial institutions allow parents to open a bank account for their child as soon as it is born, and start depositing funds to go towards the child’s future.

Children’s savings accounts generally don’t have fees, and are structured to help develop positive financial habits by limiting withdrawals, encouraging regular deposits, and earning interest on the savings, similarly to standard savings accounts.

How does interest work on savings accounts?

The type of interest savings accounts accrues is called compound interest. Compound interest is interest paid on the initial deposit amount, as well as the accumulated interest on money you have. This is different from simple interest where interest is paid at the end of a specified term. Compound interest allows you to earn interest on interest at a higher frequency. 

Example: John deposits $10,000 into a savings account with an interest rate of 5 per cent that he leaves untouched for 10 years. At the end of the first year he will have $10,512 in savings. After ten years, he will have saved $16,470.

Can you direct deposit to a savings account?

Yes. You can make one off payments or set up regular direct deposits into a savings account. This can be organised easily through online banking or by making deposits in a branch. Talk to your lender to find out the easiest way for you to set up direct deposits.

Can you set up direct debits from a savings account?

It’s not usually possible to set up a direct debit from your savings account to cover ongoing expenses or bills, as savings accounts are structured around growing your wealth by earning interest on regular deposits, and discouraging withdrawals.

Some transaction accounts allow you to set up direct debits and also earn interest, though you may not enjoy as much flexibility as a dedicated transaction account, or get as high an interest rate as a dedicated savings account.

How much money should I have in my savings account?

A good rule of thumb when working out a minimum balance for your savings account is to make sure that you’ll earn more in annual interest on your savings than what you’ll be charged in annual fees.

If you’re saving with a specific goal in mind, prepare a budget so the interest you earn on your deposits will help you efficiently reach this goal. Online financial calculators may be helpful here.