ANZ is the last of the big four banks to cut their savings account rates, following the Reserve Bank’s decision to cut the cash rate earlier this month.
ANZ today reduced the rates on their Progress Saver and Online Saver accounts by 0.20 per cent – 2 basis points more than they passed onto their home loan customers on 14 June 2019.
As of today, ANZ still offers the highest ongoing savings rate out of the big four of 2.20 per cent, while Westpac offers the highest introductory rate of 2.31 per cent for a period of 5 months.
RateCity.com.au research director Sally Tindall said: “Introductory rates have become the white elephant of banking.”
“All four big banks have slashed their base rates to just 0.30 per cent interest, when inflation is sitting at 1.3 per cent. That’s a nightmare equation for anyone trying to save.
Conditional rate savings changes: Big4
Max Rate Pre RBA
Max Rate Post RBA
Dep $200/mth, no withdraw, for bal $50K-$250K
Make 1 dep/mth, balance higher at end of mth
1 dep/mth, no withdrawals
Deposit $10/mth, no withdrawals
Intro rate savings changes: Big4
Base rate Pre-RBA
Max rate Pre RBA
Base rate Post RBA
Max rate Post RBA
RateCity.com.au data shows that over 47 banks have dropped their savings rates since the RBA cash rate cut on June 4, including ING, AMP, Bank of Queensland, ME, Suncorp and Bendigo, in addition to the big 4 banks.
The average cut to savings account rates by banks who have moved is 0.23 per cent, while the maximum cut on the database is 0.50 per cent. As a result of all the changes, the average savings account rate on RateCity.com.au’s database is now 1.55 per cent*.
“There’s no sugar coating the outlook for savers right now. With at least one, if not two more cuts to the cash rate on the horizon, the average saving rate could fall to 1.30 per cent.
“Good saving rates might be hard to come by but it’s still worth shopping around,” she said.
Market leading saving account rates
Mthly deposit of $200, no withdraw
Deposit $1K into linked trans a month
Endeavour Mutual Bank
For people up to 35 years, monthly deposit of $400
1 tap & go payment/wk with linked account
UBank has not cut this rate since the RBA cash rate change on June 4.
These are savings accounts that require the customer to meet certain conditions every month in order to get the maximum rate of interest on an ongoing basis.
These are savings accounts where customers get a bonus interest rate for a short period of time when the account is first opened, typically between 3 and 5 months.
*RateCity.com.au’s average savings rate excludes kids accounts and intro rates. Where conditions are required to get the maximum interest, it assumes these conditions are met.