ANZ Ups Ante for Savers with New Balance Condition
ANZ Ups Ante for Savers with New Balance Condition
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
In a move that has left many Australians reevaluating their savings strategies, ANZ, one of the nation's largest banks, has significantly altered the interest rates on its savings accounts.
The bank has introduced a stipulation that demands customers grow their balance by at least $100 each month to avoid a drastic reduction in interest rates.
The standard rate on ANZ's Plus Save accounts has been cut from 4.9% to a mere 0.5%. However, those meeting the new condition will be rewarded with a bonus 4.5%, bringing the total rate up to 5%.
This shift follows a similar strategy employed by Westpac last month. Westpac decreased its base rate by 0.15% but countered it by increasing its bonus rate by the same margin. Consequently, Westpac Life customers could still attain a maximum rate of 5%, on the condition that their balances increased each month.
An Australian Competition and Consumer Commission (ACCC) study indicated that about 71% of bonus interest accounts failed to secure bonus interest in any given month. This statistic casts a shadow over those hoping to benefit from ANZ's new terms without ensuring they meet the additional requirements.
According to Laine Gordon, Money Editor at RateCity.com.au, ANZ’s new policy presents a mixed bag for savers. “Those who can stash away an extra $100 or more each month will enjoy a boost in their interest rates,” said Gordon. “On the flip side, those unable to save an additional amount will find their savings progress severely hindered.”
Despite the potential for more attractive ongoing rates of 5% or higher, Gordon recommends that consumers scrutinize the terms closely. “Many high-interest accounts are fraught with specific conditions that can easily disrupt your monthly interest,” she cautioned.
Sally Tindall, Data Insights Director at Canstar, provided further insights, highlighting the volatility in savings rate structures. Over the past three months, there have been 12 instances where existing account rates decreased, while only three saw an increase.
“The changes to the ANZ Plus Save accounts will benefit some customers with higher interest rates,” Tindall noted. “However, the rest will experience a substantial drop if they fail to meet the new terms.” She also pointed out that ANZ Plus initially attracted savers looking to avoid complex conditions, making this shift particularly jarring for long-term customers.
Though most high-interest savings accounts come with specific requirements to secure the top rate, Tindall mentioned there are a few exceptions. “Some banks still offer rates above 5% with minimal to no monthly conditions, while others hover around 4.75%,” she explained.
For dedicated savers who can consistently meet the conditions, these bonus schemes might be worthwhile. Conversely, those who find it challenging to adhere to monthly terms might benefit more from a simpler, more straightforward account with a competitive rate.
The key takeaway, as Tindall advises, is to find a savings account that aligns with your saving habits and lifestyle to make the most of your financial gains.
This article was originally published by NewsWire under the headline "ANZ slashes interest rate on customers’ savings accounts unless they meet new conditions".
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
In the third quarter of 2025, investor lending in Australia reached a record-breaking $72 billion, marking a 12% increase from the previous quarter. This surge has prompted the Australian Prudential Regulation Authority (APRA) to implement new measures to mitigate potential risks associated with high levels of investor borrowing. - read more
The Australian Prudential Regulation Authority (APRA) has announced a significant policy change aimed at mitigating risks in the housing market. Effective 1 February 2026, APRA will implement a cap on high debt-to-income (DTI) home loans, limiting banks to issuing no more than 20% of new home loans with DTI ratios of six times or higher. This measure applies to both owner-occupier and investor loans, excluding new housing developments. - read more
The Australian business lending landscape has witnessed significant growth, with the total lending to non-financial businesses reaching $1.2 trillion as of January 2026. This marks a 9.3% increase over the year and a substantial 53.9% rise compared to January 2020, according to the Australian Prudential Regulation Authority (APRA). - read more
In a significant transformation, Westpac Banking Corporation is undertaking a strategic shift to bolster its presence in Australia's business lending sector. The bank plans to replace traditional in-branch tellers with dedicated bankers specialising in home and business lending. This move is part of a broader initiative to enhance customer service and streamline operations. - read more
The Australian small and medium-sized enterprise (SME) sector is experiencing a notable shift in financing preferences, with non-bank lenders gaining significant traction. This trend is driven by SMEs seeking more flexible and accessible funding options to support their growth ambitions. - read more
For new borrowers, stepping into the world of loans can be overwhelming. There are numerous options available, and each comes with its own set of terms, interest rates, and features. - read more
For many Australians, taking out a loan is a key step towards achieving personal and financial milestones, whether it's purchasing a home, investing in education, or starting a business. However, the excitement of these life events can be overshadowed by the complexity of loan agreements. Understanding the terms of a loan is not just about ticking off legal requirements—it's about ensuring financial stability and making informed decisions that align with one's financial goals. - read more
Smart borrowing is crucial for individuals and businesses in Australia to manage their financial goals effectively. With a well thought-out borrowing strategy, you can optimize your finances, minimize costs, and achieve your financial objectives. - read more
Acquiring a loan as a self-employed individual in Australia can often feel like navigating a labyrinth. Without the regular pay cheques and conventional financial documentation typically provided by salaried employees, self-employed Australians face unique challenges in proving their creditworthiness to lenders. - read more
