ANZ chops savings account and term deposit interest rates

author-avatar By on June 12, 2020
ANZ chops savings account and term deposit interest rates

Photo by Anthony Cantin on Unsplash

One of Australia's biggest banks has lowered the interest rates on both its savings account and term deposit products this week.

ANZ yesterday took the proverbial axe to its two main savings account products, the non-introductory Progress Saver account and the introductory Online Saver account.

These savings accounts had their maximum interest rates cut by 15 basis points, in a month where no Reserve Bank rate cut took place. 

ANZ also cut a huge number of term deposit interest rates by as much as 25 basis points yesterday. 

The moves come at a time when Australian Prudential Regulation Authority (APRA) statistics for April 2020 show all four major banks increased their deposit books by more than 4% compared to the same month in 2019, potential in response to financial uncertainty created by COVID-19. 

ANZ savings account rate cuts 

According to ANZ's website, both of these savings account products were cut by 15 basis points, both to below 1.00% p.a. 

ANZ's non-introductory account, the Progress Saver, has had its maximum interest rate reduced from 1.00% p.a. to 0.85% p.a: This change applies to the bonus interest rate, cut to 0.84% p.a, while the base interest rate is a miniscule 0.01% p.a. 

To earn the bonus rate customers must make no withdrawals and deposit at least $10 in any given month. 

ANZ's Online Saver meanwhile now has an interest rate of 0.80% p.a, down from 0.95% p.a, and is an introductory rate for three months before reverting to just 0.05% p.a. 

ANZ now has the second-lowest non-introductory rate among the big four banks' savings accounts:

  • The Westpac Life account has a total interest rate of 1.05% p.a. 
  • The NAB Reward Saver has a total interest rate of 1.00% p.a. 
  • The Commonwealth GoalSaver has a total interest rate of 0.50% p.a. 

Outside of the big four banks there are some introductory savings accounts on offer with much higher interest rates.

Macquarie Bank and Rabobank, for example, offer four-month introductory interest rates of 2.26% p.a and 2.25% p.a. respectively, before reverting to lower interest rates (rates that are still on par or higher than those of the big four). 

These types of accounts might not be the best choice for long-term savings, but they could be useful for savers that have a short-term savings goal, like saving for a holiday. 

The table below features introductory savings accounts with some of the highest interest rates on the market.

Provider
Total
interest
rate p.a.
Intro
interest
rate p.a.
Intro
term
Base
interest
rate p.a.
 
2.10% 2.10% 4 months 0.00% Go to site
2.26% 0.91% 4 months 1.35% More details
2.25% 1.45% 4 months 0.80% More details
2.20% 1.40% 4 months 0.80% More details
2.05% 1.70% 4 months 0.35% More details

*Data accurate as at 14 July 2020. Rates based on a savings balance of $10,000. Sorted by total interest rate. Refer to providers' websites for bonus rate conditions. Note that the base rate will apply once the introductory term has passed.

The only other notable savings account rate changes to occur in the last few weeks is RAMS, which on Monday 1 June cut the maximum interest rate on its RAMS Saver account from 1.65% p.a. to 1.20% p.a - a whole 45 basis points. 

ANZ term deposit rate cuts 

ANZ also cut a swathe of term deposit rates on Thursday, by as little as 10 basis points and as much as 25 basis points. 

It's the only one of the major banks to make changes to term deposit rates so far in June, as far as Savings.com.au has managed to find. 

These cuts apply to pretty much every term ANZ offers, ranging from a few months to five years. 

Term deposits among the big four banks are extremely low at the moment, with the highest rate advertised on ANZ's website being just 1.00% p.a.for an eight-month term. 

The average term deposit rate among all the big four banks, when comparing a broad range of their term deposits, is just 0.80% p.a. 

But outside of the big four, there are some banks offering significantly higher term deposit rates than this. 

The table below features term deposits with some of the highest interest rates on the market for a six-month term.

Provider
Advertised
interest rate
Interest
frequency
 
Term Deposit
0.90% End of term More details
1.50% End of term More details
1.46% Annually,
end of term
More details
1.45% Monthly,
end of term
More details
1.40% End of term More details

*Rates correct as at 13 July 2020. Rates based on a $50,000 deposit for 6 months.


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author-avatar
William Jolly joined Savings.com.au as a Financial Journalist in 2018, after spending two years at financial research firm Canstar. In William's articles, you're likely to find complex financial topics and products broken down into everyday language. He is deeply passionate about improving the financial literacy of Australians and providing them with resources on how to save money in their everyday lives.

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