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Westpac and ANZ announce RBA hikes: what it means for homeowners and savers

Laine Gordon avatar
Laine Gordon
- 4 min read
Westpac and ANZ announce RBA hikes: what it means for homeowners and savers

Westpac and ANZ have today announced they will pass on Tuesday’s 0.25 percentage point RBA hike to mortgage customers. Both banks have also announced increases for select savings customers, but not all.

  • Westpac’s savings changes are effective 12 May, however, mortgages are moving on 16 May.
  • ANZ’s one savings change is effective 11 May, while its variable mortgage changes are effective 12 May. 

Westpac variable rates for owner-occupiers – effective 16 May

Loan type

Old rate

New rate

Lowest variable

5.24% for 2 yrs then +0.40% pts

5.49% for 2 yrs then +0.40% pts

Discounted variable

6.69%

6.94%

Standard variable rate

7.98%

8.23%

Source: RateCity.com.au. Note LVR requirements may apply. Above rates are for new customers and are the lowest for each loan type.

ANZ variable rates for owner-occupiers – effective 12 May

Loan type

Old rate

New rate

Lowest variable

5.54%

5.79%

Standard variable

6.49%

6.74%

Index rate

7.89%

8.14%

Source: RateCity.com.au. Note LVR requirements may apply. Above rates are for new customers and are the lowest for each loan type.

What are the big banks doing for savers?

Westpac is increasing the rate on its Life account by 0.25 percentage points, while it’s Spend&Save account for young adults will be increasing by 0.30 percentage points (5 percentage points more than the RBA rate rise).

The bank has increased the introductory rate on its eSaver account for new customers but left the ongoing rate for existing customers unchanged. At this stage, its kids’ saver, Bump, also remains unchanged.

ANZ is passing on the 0.25 percentage point increase to its Plus Save account. All other ANZ savings rates remain unchanged at this stage.

Westpac savings changes – effective 12 May

Account

Old max rate

New max rate

Change % pts

Life

4.25%

4.50%

+0.25%

eSaver

4.25% for 5 mths then 1.10%

4.50% for 5 mths then 1.10%

+0.25% to intro rate. No change to ongoing rate.

Spend&Save (ages 18-29)

4.70%

5.00%

+0.30%

Bump (ages under 18)

4.25%

4.25%

No change

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

ANZ savings rate changes – effective 11 May

Account

Old max rate

New max rate

Change % pts

Progress Saver

3.75%

3.75%

No change

Online Saver

2.90% for 3 mths then 1.10%

2.90% for 3 mths then 1.10%

No change

ANZ Plus Save

4.25%

4.50%

0.25%

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

RateCity.com.au research director, Sally Tindall, said: “Once again Westpac and ANZ are picking and choosing which savings accounts get a boost and which miss out.”

“Westpac is serving up a generous 0.30 percentage point hike for its young adult savers, to take this rate to an impressive 5 per cent, yet its existing eSaver customers are still stuck in neutral on just 1.10 per cent,” she said.

“ANZ has committed to hiking the rates on just one of its three savings accounts, which is a disappointing result, particularly for those customers with a Progress Saver or an Online Saver account.

“If you’ve got your cash sitting in a savings account, don’t just assume your bank is passing on these RBA hikes in full. 

“Check your rate and if it’s earning an ongoing rate of less than 4.5 per cent, then it could be time to switch. 

“Keen savers can get ongoing rates of 5 per cent, potentially higher once this latest hike filters through,” she said.

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Product database updated 28 May, 2024

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