ANZ cuts savings account rates; experts urge customers to look elsewhere

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ANZ has today cut its two main savings accounts by 0.05 per cent, and experts say it might be time for customers to look elsewhere.

This is second time ANZ has cut its savings rates this year, despite the fact the cash rate has not moved since November 2020.

The bank has cut savings rates on its ANZ Progress Saver and ANZ Online Saver accounts. research director, Sally Tindall, said ANZ savings customers should consider switching to a bank willing to pay them more for their money.

“ANZ isn’t the only bank offering next to nothing on their savings rates. The average ongoing savings rate on our site is now just 0.33 per cent. That’s less than one third of the current inflation rate,” she said.

“If you’re earning less than half a percent from your savings account, it’s time to shop around.

“There are still 13 banks offering ongoing savings rates over 1 per cent.

“ING is offering 1.35 per cent if you meet its terms and conditions, while Westpac and BOQ are still offering up to three per cent for young adults, which are astounding rates in this market.

“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.

“The banks are stuffed full of cash from households and they don’t want to pay any more than they have to for it,” she said.

The latest APRA Monthly Banking Statistics show that deposits from households have risen by $106.1 billion year-on-year.

According to the database, 55 banks have cut savings rates since March 1 this year.

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