ANZ cuts interest rates for savers in double-whammy following RBA cash rate call: ‘Pulled the rug out’
ANZ has “pulled the rug out” from underneath customers today by slashing its savings interest rates. The major bank already cut interest rates on its key savings account last month following the Reserve Bank of Australia (RBA) cash rate cut.
But ANZ axed the 2.25 per cent introductory bonus on its popular Online Saver account on Monday, taking the total maximum rate down to just 1.15 per cent. This follows a 0.25 per cent cut on February 28 following the RBA’s announcement.
The Big Four bank has also cut its Progress Saver interest rate by 0.10 per cent, bringing the total bonus rate to 3.75 per cent. The rate reverts to just 0.01 per cent if conditions are not met.
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Mozo money expert Rachel Wastell said the move was a “clear signal” the bank was trying to push customers towards its digital ANZ Plus savings product, which still offers a 4.75 per cent bonus rate for customers who grow their balance by $100 or more each month.
“ANZ just pulled the rug out from underneath its savers by removing its intro rate to offer a measly 1.15 per cent per annum,” Wastell said.
“This is a far cry from what’s available elsewhere, including the rate on offer from ANZ’s digital brand ANZ Plus.”
The other Big Four banks also lowered their savings rates following the RBA’s decision, which can be a "double-edged sword" for Aussies.
Commonwealth Bank cut its GoalSaver account by 0.25 per cent to 4.65 per cent and its NetBank Saver account by 0.20 per cent to 4.90 per cent.
Westpac cut its Westpac Life and eSaver accounts by 0.25 per cent to 4.75 per cent, while NAB cut its Reward Saver and iSaver by 0.25 per cent to 4.75 per cent.
Savers urged to shop around
Savings interest rates can vary “dramatically” between banks and Wastell has urged Aussies to shop around.
“The gap between a 1.15 per cent and 4.75 per cent per annum savings rate can really add up, and those sticking with sub-par rates could be missing out on hundreds of dollars in potential interest,” she said.
Mozo found someone with a $5,000 balance would be missing out on $185 interest over a year, while someone with a $10,000 balance would be forgoing an extra $369.
Even better returns can be found outside of the Big Four banks.
ING Savings Maximiser currently has a 5.40 per cent bonus rate for balances up to $100,000 with conditions attached, while Australian Unity has a 4.85 per cent unconditional rate for balances up to $250,000.
