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Westpac, ANZ adjust savings rates

Laine Gordon avatar
Laine Gordon
- 4 min read
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Westpac has adjusted the rates on its Life savings accounts, dropping the base rates by 0.15 percentage points and lifting the bonus rates by the same amount.  

The Westpac’s eSaver and Bump rates remain unchanged.

Changes to Westpac Life

Old rate

New rate

Change

Max rate

5.00%

5.00%

No change

Base rate

2.00%

1.85%

-0.15%

Bonus rate

3.00%

3.15%

+0.15%

Source: RateCity.com.au. Note: conditions and balance caps apply for maximum rate on select accounts. 

Changes to Westpac Life Spend&Save for 18-29 year olds

Old rate

New rate

Change

Max rate

5.20%

5.20%

No change

Base rate

2.00%

1.85%

-0.15%

Bonus rate

3.00%

3.15%

+0.15%

Spend%Save bonus (up to $30K)

0.20%

0.20%

No change

Source: RateCity.com.au. Note: conditions and balance caps apply for maximum rate on select accounts. 

ANZ savings rate changes

Last Friday, ANZ adjusted the rates on its Online Saver account; increasing the introductory bonus rate by 0.10 percentage points for new customers, but only for 3 months.

The base rate, however, has dropped by 0.10 percentage points to 1.40 per cent ongoing. 

ANZ Progress saver rates remain unchanged. 

Changes to ANZ Online Saver – effective 13th September

Old rate

New rate

Change

Max rate (3 months)

3.65%

3.65%

N/A

Intro bonus rate (3 months)

2.15%

2.25%

+0.10

Ongoing rate

1.50%

1.40%

-0.10%

Source: RateCity.com.au. Note: intro rate for new customers only.

Analysis from RateCity.com.au shows since 1 January this year, 33 banks have cut at least one savings rate, including Westpac, ANZ, Macquarie, HSBC and BoQ.

However, there are still some decent ongoing savings rates for those willing to shop around.

The RateCity.com.au database shows over 60 banks have at least one ongoing savings rate above the monthly inflation indicator rate of 3.5 per cent.

  • 128 savings accounts have a rate over 3.5% for all adults
  • 6 savings accounts have a rate over 3.5% for young adults.

Money in the bank just hit a new record high in the latest APRA data for July 2024, with the total amount saved in the bank from households now at $1.50 trillion.

Note: deposits from households include term deposits, transaction accounts, mortgage offset accounts and savings accounts on the books of authorised deposit-taking institutions (ADIs). 

Total deposits by households, July 2024

Amount

Monthly change

Year-on-year change

Since start of hikes

$1.50 trillion

Record high

+$30.81 billion
  +2.1%

+$110.69 billion
  +7.8%

+$230.20 billion
  +18.13%

Source: APRA monthly authorised deposit-taking institution statistics.

 RateCity.com.au money editor, Laine Gordon, said: “When it comes to savings accounts, some of the biggest banks are battening down the hatches.” 

“The banks are getting smashed with ballooning deposit books. These cuts are designed to protect their profit margins,” she said. 

“Latest APRA data shows Australians have a record $1.50 trillion in household deposits in July. Banks will be trying to put a lid on how much interest they have to fork out. 

“It’s a grim outlook for Australians with savings in the bank, as they stare down the barrel of potential rate cuts next year. 

“There are still more than 60 banks offering ongoing savings rates above the monthly CPI indicator rate at 3.5 per cent. So if your hard-earned savings aren’t working hard enough for you, then consider switching to an account that will,” she said.

Highest ongoing savings rates

Excludes kids and young adult accounts 

Max rate

Base Rate

Balance cap for max rate

Max Rate Conditions

ME Bank HomeME

5.55%

0.55%

$100K

Deposit $2K into linked transaction account + grow savings balance.

MOVE Bank Growth Saver

5.50%

0.10%

$25K

Deposit $200 and make no withdrawals in savings account.

ING Savings Maximiser

5.50%

0.55%

$100K

Deposit $1K and make 5+ eligible transactions + grow savings balance

ubank Save Account

5.50%

0.00%

$100K

Deposit $500 into ubank savings or transaction account

Rabobank Premium Saver

5.45%

1.50%

$250K

Grow savings balance by $200 a month.

Source: RateCity.com.au.

Highest ongoing savings rates (no strings attached)

Excludes introductory rates, kids and young adult specific accounts

Bank

Max rate

Balance cap

The Mutual Bank Internet Saver

6.00%

$50K - $100K

Australian Unity Freedom Saver

5.20%

$50K

ANZ Plus Save

4.90%

$250K

BoQ Simple Saver

4.85%

$5M

Macquarie Savings account*

4.75%

$250K - $1M

Source: RateCity.com.au. * Includes an intro rate of 5.35% on balances up to $250K for first 4 mths.

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Product database updated 11 Oct, 2024

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