ANZ has cut both its standard and conditional savings rates for the second time this year
Savers have been dealt another blow with ANZ opting to slash deposit rates for the second time in 2021.
The major bank has cut its standard and conditional saving rates by five basis points, with both products now garnering a return of less than half a per cent.
ANZ’s Progress Saver now has a maximum rate of 0.35 per cent on the conditions of a minimum $10 deposit a month and no withdrawals.
The bank’s standard Online Saver attracts a three-month introductory rate of 0.3 per cent before it reverts to an ongoing rate of 0.05 per cent.
ANZ’s rate change comes despite the Reserve Bank of Australia making no changes to the official cash rate since November last year.
RateCity research director Sally Tindall said ANZ customers should consider looking at other banks to place their savings.
“If you’re earning less than half a per cent from your savings account, it’s time to shop around,” she said.
“There are still 13 banks offering ongoing savings rates over 1 per cent.”
Australia’s low interest rate environment, sparked by the Covid-19 economic downturn, has led to the big fall in savings rates across the financial sector.
Savings rates are an outward expense for a bank and fall as a response to the downward pressure on lending rates, which is a major revenue earner.
The RBA has set the official cash rate at 0.1 per cent, fuelling a number of mortgage lenders to drop interest rates to below 2 per cent.
According to RateCity, the average ongoing savings rate in Australia sits at 0.33 per cent, less than a third of the current inflation rate.
The leading comparison site has also found that 55 banks since the start of the year have sliced rates on deposit accounts.
The latest banking statistics from the Australian Prudential Regulatory Authority show household deposits have risen $106.1bn year-on-year.
“The banks are stuffed full of cash from households and they don’t want to pay any more than they have to for it,” Ms Tindall said.
“The big four banks are practically falling over themselves to get new mortgages onto their books, but when it comes to savings customers, it’s a completely different story.”
ING is offering the highest ongoing savings rate at 1.35 per cent.
However, young adults can obtain a 3 per cent rate at either Westpac or Bank of Queensland.
Originally published as ANZ has cut both its standard and conditional savings rates for the second time this year
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