What is an ANZ locked savings account?
22 July 2022
Considering a locked savings account? Find out what is on offer from ANZ.
What is a locked savings account?
A ‘locked savings account’ is a term used to describe an account that you can’t withdraw from. This could encourage you to not touch your savings and help you grow your balance.
Two common examples are savings accounts with withdrawal conditions and term deposits.
- Savings accounts with withdrawal conditions typically offer you bonus interest each month you save money and make no withdrawals.
- Term deposits lock away your money for a set period of time (usually between one month and five years) and in return you can earn a fixed interest rate.
Savings accounts are more flexible than term deposits. A savings account with withdrawal conditions allows you to withdraw your money whenever you need, but you’ll earn less interest.
With a term deposit, you may need to give notice to withdraw your money and you may be charged fees and earn a reduced rate of interest.
What is an ANZ locked savings account?
ANZ offers a savings account with withdrawal conditions. The ANZ Progress Saver rewards you with bonus interest if you deposit $10 or more and make no withdrawals during the month. If you don’t meet these conditions, you will earn the base rate only. This is currently just 0.01%.
ANZ also offers two term deposit options: ANZ Advance Notice Term Deposit and ANZ Term Deposit. With the ANZ Advance Notice Term Deposit, you need to give 31 days notice if you want to withdraw money before the end of the term. Fees and charges also apply. The ANZ Term Deposit does not require a notice period, but fees and charges will apply for early withdrawals.
What other savings accounts does ANZ offer?
ANZ also offers the ANZ Online Saver account, which has no withdrawal restrictions. New customers can currently earn a bonus rate for the first three months of having an account. This then drops to the base rate only.
A locked savings account could suit you if you don’t need access to your savings. But if you think you will dip into your savings, you might be better off with a savings account with no withdrawal conditions. You can compare savings accounts with Canstar and see some of the highest interest rates on our database.
Cover image source: Chim/Shutterstock.com
This article was reviewed by our Deputy Editor Sean Callery and Sub Editor Jacqueline Belesky before it was updated, as part of our fact-checking process.
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