ANZ today cut its standard and introductory savings account interest rates by 10 basis points, while Commonwealth Bank lowered its standard account rate by 5 basis points. 

These follow several other changes made by major banks out-of-cycle from any Reserve Bank rate cuts, with the cash rate holding steady on Tuesday


Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.

Provider

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  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance

High Interest Savings Account (< $250k)

  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance
010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

Savings Maximiser (<$100k)

    010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    • Earn up to 5.40% pa by depositing $1,000 in the previous month
    • No account fees
    • Easy access to your money

    Saver Account (<$250k)

    • Earn up to 5.40% pa by depositing $1,000 in the previous month
    • No account fees
    • Easy access to your money
    05001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    • Maximum Age - 24

    Goal Saver

    • Maximum Age - 24
    02000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    No monthly fees
    • Download the App to open your account
    • Get better visibility of your spending within App!
    • Deposit $200 per month to activate bonus interest
    No monthly fees

    Save Account

    • Download the App to open your account
    • Get better visibility of your spending within App!
    • Deposit $200 per month to activate bonus interest
    0200$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    • No fees or penalties for withdrawing money
    • Savings guaranteed up to $250,000
    • Maximise your savings and reach your goals faster with Auto-Savings

    Bonus Saver Account (Amounts < $250k)

    • No fees or penalties for withdrawing money
    • Savings guaranteed up to $250,000
    • Maximise your savings and reach your goals faster with Auto-Savings
    010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    For customers aged 14-35 years
    For customers aged 14-35 years

    Future Saver Account ( < $50k)

      010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

      Boost Saver

        Important Information and Comparison Rate Warning

        All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of May 26, 2024. View disclaimer.


        ANZ savings account rate cuts

        ANZ’s Online Saver account, which carries a three-month introductory rate, has been cut by 10 basis points to a total interest rate of just 0.35% p.a. 

        At the end of the introductory period, the interest rate reverts to a mere 0.05% p.a. 

        On a $10,000 balance, this base interest rate would earn $5 in interest over a whole year. 

        ANZ's conditional bonus account, the Progress Saver, has seen its maximum interest rate cut to 0.40% p.a.

        To earn this rate, customers must deposit more than $10 every month and also ensure the balance is higher each month. 

        Compare high-interest introductory savings accounts

        Commonwealth Bank savings account rate cuts 

        Commonwealth Bank (CBA) has cut the maximum interest rate on its bonus savings account by five basis points to 0.40% p.a and making the same cut to its Kids YouthSaver account (0.65% p.a for balances up to $50,000). 

        To earn the 0.40% p.a bonus rate with Commbank, customers simply need to make a deposit each calendar month into the account.

        CBA had previously cut the interest rate on this account by five basis points on 22 January, while also lowering the NetSaver account's five-month introductory rate to 0.50% p.a. 

        After the five months, the NetSaver account reverts to an ongoing rate of 0.05% p.a. 

        Provider

        00.010$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

        Life

          01010$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

          Progress Saver

            010$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

            Reward Saver

              5000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

              NetBank Saver

                Important Information and Comparison Rate Warning

                All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of May 26, 2024. View disclaimer.

                Savings account rates look worse by the day 

                These interest rate reductions by Commonwealth Bank and ANZ follow similar moves by Westpac and NAB in the past couple of weeks.

                NAB and Westpac lowered some savings account rates by 15 basis points each

                The average maximum interest rate offered by the big four is now just 0.45% p.a for savings accounts, with the highest being ANZ's 0.50% p.a Progress Saver account.

                Earlier this week, RAMS cut its Saver Account rate by a whopping 40 basis points to a total of 0.15% p.a. 

                Before the RBA's first rate cut in 2019, this account had an interest rate as high as 3.00% p.a.

                The highest interest rates around now - excluding restricted offers like Westpac's 3.00% p.a offer for under 30s - belong to the likes of ING and ME Bank, at around 1.20 - 1.30% p.a. 

                Term deposit customers - look away now 

                The situation looks even worse for term deposits.

                So far in 2021, more than 30 banks have slashed term deposit interest rates for customers looking at a secure place to save. 

                These banks include Commonwealth Bank and Westpac, as well as other retail banks such as Judo, Suncorp and Macquarie. , 

                According to Savings.com.au research, the average term deposit rate across all terms is just 0.45% p.a.

                The average 12-month deposit rate is about 0.55% p.a. At this rate, a $10,000 deposit would return just $55 in interest. 

                With the Reserve Bank once again confirming it would not look to raise the cash rate for several years, these rates are likely to remain low for quite some time. 

                Customers weighing up where to invest their money may need to consider if stashing it away for 12 months (or more) is worth the meagre interest potential. 

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