ANZ savings cut leaves bank at bottom of pack

ANZ now has the lowest returns on savings for depositors among the big four banks, after its latest round of cuts.

ANZ’s move makes it the 37th bank in the last two months to cut savings rates.. Picture: NCA NewsWire / Naomi Jellicoe

ANZ has slashed its savings rates in the latest of several cuts for depositors despite the cash rate not budging since November 2020.

The move by ANZ now leaves the bank at the bottom of the pack for rates of return on savings among the big four banks.

ANZ cut its two main savings account by 0.05 per cent, the second time the bank has cut its savings rates this year.

The bank sliced the Bonus Interest Rate on its Progress Saver Account to 0.25 per cent.

This is well down on the 0.4 per cent ANZ was offering in June this year.

Savers only qualify for the bonus rate if they make at least one deposit of $10 and no withdrawals.

ANZ’s three-month bonus rate on the bank’s Online Saver account was cut by 0.1 per cent to 0.2 per cent for three months.

The move by ANZ makes it the 37th bank in the last two months to cut savings rates.

It also follows similar moves by CBA and Westpac to cut returns to savers.

Westpac and its three subsidiaries moved to cut returns across savings accounts in mid-September.

But NAB is yet to cut savings returns for depositors.

The average bank is offering a 0.3 per cent rate of return on savings accounts according to RateCity analysis.

However, RateCity notes there are 12 banks still offering savings rates of 1 per cent or more.

ING offers the highest ongoing savings rate of return at 1.35 per cent.

Virgin Money offers 1.5 per cent for three months, followed by 1.2 per cent.

Young adults can qualify for a higher savings rate, with 18-29 year olds at Westpac Life able to qualify for 2.5 per cent for balances up to $30,000.

RateCity research director Sally Tindall said ANZ’s moved put the bank at the bottom of the pack for rates of return for savers.

“However, ANZ is not acting in isolation. A total of 37 banks have cut at least one savings rate in the last two months, including big four banks CBA and Westpac,” she said.

“Most banks aren’t interested in attracting more savings customers because they just don’t want or need them.

ANZ chief executive Shayne Elliot in August noted the bank had been struggling to attract mortgage borrowers, with the bank’s home lending down $300m for the June quarter.

Ms Tindall said savers are suffering from the bank’s indifference.

“Savings rates are at an all-time low, yet money in the bank is at an all-time high. Savers are feeling the brunt of the banks’ complete nonchalance,” she said.

“The latest APRA statistics show there are $1.17 trillion in household deposits – an increase of $99bn in the last year and $204bn in the last two years.”