ANZ cut the bonus and introductory interest rates on its savings accounts on Thursday by 0.20 percentage points each. The new rates are:
- 0.50% – Progress Saver (0.01% base rate + 0.49% bonus rate when you meet certain conditions each month)
- 0.45% – Online Saver (0.05% base rate + 0.40% introductory rate for the first three months)
The bank also lowered some pensioner passbook rates and cash investment account rates.
ANZ’s Online Saver account started the year at 1.60% (made up of 0.10% base interest and 1.50% introductory interest) and has since fallen by a total of 1.15 percentage points after six cuts.
The bank’s latest round of cuts comes just six days after one of its main rivals and Australia’s largest bank, the Commonwealth Bank, cut its savings rates, and about a fortnight following the Reserve Bank’s call to reduce the official cash rate to 0.10%.
Canstar finance expert Steve Mickenbecker said ANZ’s cuts followed hot on the heels of 18 other providers on Canstar’s database that had already reduced savings rates since the cash rate move on 3 November, as part of a broader trend of falling interest rates.
“Scrooge has turned up early this year, with some banks leaving smaller savings interest rates under the tree,” Mr Mickenbecker said.
“The low savings rates will leave a bad taste in the mouths of savers who are relying on interest to supplement their living.
“Hopefully stock markets are filled with more festive cheer for those seeking alternative ways to invest their money.”
Where to find the highest savings account interest rates
The maximum rate you can earn from the major banks on a regular savings account (including those with introductory bonus rates) is currently 0.75% at Westpac and National Australia Bank, and on bonus accounts (where you’re required to meet certain conditions to earn bonus interest) it’s also 0.75%, from Westpac. Younger savers aged 18 to 29 can access up to four times that amount, however, with Westpac offering a rate of 3% on balances below $30,000, for customers able to meet certain bonus conditions.
ANZ has the lowest regular savings account rate out of the big four at 0.45%, while the Commonwealth Bank currently has the lowest bonus saver rate at 0.45%.
There are higher rates to be found for regular and bonus savers from other financial institutions, however, according to Canstar’s database.
Top 3 regular savings account rates on Canstar’s database
|Company||Account||Base Rate||Promo Rate||Promo Period||Total Rate|
|Rabobank Australia||High Interest Savings Account||0.30%||1.45%||4 months||1.75%|
|Bank of China||Online Saver||0.60%||1.00%||4 months||1.60%|
|Macquarie Bank||Savings Account||1.20%||0.15%||4 months||1.35%|
Source: www.canstar.com.au – 19/11/2020. Based on a deposit of $10,000. Top rates selected, and table sorted, in descending order by total rate. Total rate includes the base rate plus any promotional bonus rate. Flexible accounts (regular savings accounts) include those accounts with no conditional bonus rate. Excludes products that are only available to people of a certain age. Conditions may apply to bonus and promotional rates; contact the relevant company for full terms and conditions.
Top 3 bonus savings account rates on Canstar’s database
|Company||Account||Base Rate||Bonus Rate||Bonus Conditions||Total Rate|
|MyState Bank||Bonus Saver||0.15%||1.35%||Deposit $20 and make 5 settled VISA Debit card transaction each month||1.50%|
|ING||Savings Maximiser||0.05%||1.30%||Deposit $1,000 and make 5 settled card purchases each month||1.35%|
|UBank||USave Savings Bonus||0.25%||1.06%||Link a USpend account & deposit $200 each month||1.31%|
Source: www.canstar.com.au – 19/11/2020. Based on a deposit of $10,000. Top rates selected, and table sorted, in descending order by total rate. Total rate includes the base rate plus any conditional bonus rate. Bonus accounts include those accounts where a bonus rate is payable when certain conditions are met. Excludes products that are only available to people of a certain age. Conditions may apply to bonus and promotional rates; contact the relevant company for full terms and conditions.
The comparison table below shows some of the Savings Accounts on Canstar’s database for a regular saver in NSW with links to the providers’ websites. The results shown are based on an investment of $100,000 in a personal savings account and are sorted by Star Rating (highest to lowest), then provider name (alphabetically). For more information and to confirm whether a particular product will be suitable for you, check upfront with your provider and read the Product Disclosure Statement before making a decision.