No home loan under 2% yet ANZ cuts savings account to 0.5%

author-avatar By
on November 19, 2020
No home loan under 2% yet ANZ cuts savings account to 0.5%

Source: Wikimedia Commons

In another blow for savers, ANZ has cut its savings account more than the 15 basis point cut prescribed by the Reserve Bank.

ANZ's 'Progress Saver' account was cut by 20 basis points, for a maximum rate of 0.5% if $10 per month is deposited, with no withdrawals made.

Its standard five-month introductory rate was also cut by 20 basis points to 0.45%, which moves to an ongoing rate of just 0.05% after the introductory period ends.

ANZ also slashed various term deposits by 20 basis points, with the highest rates achievable 0.60% p.a. on a 60 month (5-year) term.

ANZ's savings account rate sits a full 100 basis points or more below some of the highest interest rates in the market, as seen below.

Lender

000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

Fast Track Saver Account ($1-$250k)

    000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

    Life (< 30 years) (Monthly deposit)

      001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

      Save Account (< $100,000)

        This table is includes a snapshot of the provider's products, not all of them. Refer to providers' websites for bonus rate conditions. Note that the base rate will apply once the introductory term has passed. Rates correct as of March 23, 2022. View disclaimer.

        The major bank was the only one of the big four to not introduce a home loan under 2% after the Reserve Bank's cash rate decision two weeks ago.

        CBA, Westpac, and NAB all introduced home loans under 2% for borrowers willing to fix for four years on a packaged home loan.

        The equivalent home loan ANZ offers is the 'Breakfree Package', fixed for four years at 2.29% p.a. (3.77% p.a. comparison rate*).

        ANZ also has a one-year Breakfree Package at 2.09% p.a. (4.13% p.a. comparison rate*).

        As it stands, this sits around 30 basis points higher than some of the more competitive home loan rates in the market, and its comparison rate is around a full 2 percentage points higher, as seen below.

        Lender

        Variable
        More details
        UNLIMITED REDRAWSSPECIAL OFFER
        • Fast turnaround times, can meet 30-day settlement
        • For purchase and refinance, min 20% deposit
        • No ongoing or monthly fees, add offset for 0.10%
        UNLIMITED REDRAWSSPECIAL OFFER

        Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

        • Fast turnaround times, can meet 30-day settlement
        • For purchase and refinance, min 20% deposit
        • No ongoing or monthly fees, add offset for 0.10%
        Variable
        More details
        ZERO APPLICATION FEESFEE FREE OFFSET
        • We lower your rate based off how much you’ve paid down your loan
        • Automatic rate match
        • No upfront or ongoing fees
        ZERO APPLICATION FEESFEE FREE OFFSET

        Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

        • We lower your rate based off how much you’ve paid down your loan
        • Automatic rate match
        • No upfront or ongoing fees
        Variable
        More details
        100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
        • No upfront or ongoing fees
        • 100% full offset account
        • Extra repayments + redraw services
        100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

        Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

        • No upfront or ongoing fees
        • 100% full offset account
        • Extra repayments + redraw services
        Variable
        More details
        • No upfront or ongoing fees
        • 100% full offset account
        • Extra repayments + redraw services

        Variable Owner Occupied, Principal and Interest (LVR < 80%)

        • No upfront or ongoing fees
        • 100% full offset account
        • Extra repayments + redraw services
        Variable
        More details
        NO ONGOING FEESFREE REDRAW FACILITY
        • No upfront or ongoing fees
        • 100% full offset account
        • Extra repayments + redraw services
        NO ONGOING FEESFREE REDRAW FACILITY

        Live-in Variable Loan (Principal and Interest) (LVR < 90%)

        • No upfront or ongoing fees
        • 100% full offset account
        • Extra repayments + redraw services
        Variable
        More details

        Home Value Home Loan (Principal and Interest) (LVR < 70%)

          Variable
          More details
          100% FULL OFFSET ACCOUNT
          100% FULL OFFSET ACCOUNT

          Ocean Owner Occupied (Amounts < $1m, LVR < 60%)

            Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 24, 2022. View disclaimer.

            November's RBA rate cut caused concern for pensioners, as the deeming rates are still at 0.25% on the low end, and 2.25% on the high end.

            They are the rates the government deems a pensioner's assets to be earning.

            National Seniors Australia chief advocate Ian Henschke told Savings.com.au two weeks ago the "double whammy" forces retirees to look to the more volatile sharemarket.

            “If the whole point of the Reserve’s decision today is to try to stimulate the economy, then why do we have pensioners and seniors still living with high deeming and PLS [pension loan scheme] rates?” Mr Henschke said.

            ANZ noted in its end of financial year 2019-2020 report that it had drawn down $13 billion under the Reserve Bank's low-cost Term Funding Facility (TFF) in the year to September.

            The TFF allows banks to use low cost funding from the Reserve Bank, previously at an interest rate of 0.25% over three years, now at 0.10%. 


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            author-avatar
            Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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