ANZ reduces savings and home loan interest rates

ANZ has today cut the interest rates on multiple savings accounts and home loan products. Find out the changes and how they affect you.

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ANZ has today taken the axe to interest rates across many savings and home loan products.

The big bank has today cut rates across savings and home loan products, following in the footsteps of National Australia Bank who last week cut savings interest rates.

ANZ has today cut its Online Saver account rate from a paltry 0.1 per cent to just 0.05 per cent and reduced many term deposit products by up to 0.1 per cent.

It’s ANZ Online Saver has fallen from 1.6 per cent to just 1.55 per cent – an introductory rate that applies for the first three months.

The ongoing rate on this account has also reduced from just 0.1 per cent to just 0.05 per cent – a fall of 0.5 per cent.

The move comes after NAB dropped the rate on its popular iSaver and Reward Saver accounts by between 0.11 to 0.15 percentage points last week.

The big four bank’s ongoing standard savings account rates is now between just 0.05 per cent and 0.11 per cent.

ANZ has also today reduced its home loan rate on its Simplicity Plus (loan-to-value ratio 80 per cent of less) product from 3.24 per cent to 3.12 per cent – a fall of 0.12 per cent.

The bank has also cut its ANZ Simplicity Plus Home Loan (LVR over 80 per cent) from 3.58 per cent to 3.38 per cent – a reduction of 0.2 per cent.

These reductions are for new customers.

ANZ has reduced the interest rates across savings and home loan products.

It now has the second lowest ongoing variable rate out of the big four banks behind NAB’s base variable rate product at 3.09 per cent.

Westpac’s Flexi First Option rate is 3.18 per cent, while the Commonwealth Bank’ Extra Home Loan rate is 3.22 per cent.

Financial comparison website RateCity’s spokeswoman Sally Tindall said the ANZ savings cut would leave customers worse off.

“ANZ customers with an online saver account will now be getting a measly 0.05 per cent interest after the three month honeymoon rate expires,” she said.

“A person with one of these accounts would earn around $5 in the year after the bonus rate expires on a balance of $10,000.

“That’s barely a couple of loaves of bread.”

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Ms Tindall said several banks had cut some of their term deposits in the past week “which suggests they are getting their house in order ahead of a potential cash rate cut”.

An ANZ spokesman said, “We regularly review our rates and look to balance the needs of our customers whenever we make any changes, while remaining competitive”.

CommSec’s economist Craig James said another couple of cash rate cuts are likely in 2020, but a lot is dependant on job figures which are being released today and inflation figures next week.

“The Commonwealth Bank group is still factoring in a rate cut of 0.25 per cent in February,” he said.

“And also pencilling that rates could fall again later in the year perhaps in August.”

The Commonwealth Bank also reduced some rates across term deposit accounts while Westpac moved rates on six-month term deposits and some fixed interest rates.

@sophieelsworth

Originally published as ANZ reduces savings and home loan interest rates