ANZ Ups Ante for Savers with New Balance Condition
ANZ Ups Ante for Savers with New Balance Condition
2
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".
Published:Thursday, 3rd Oct 2024 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
The Reserve Bank of Australia (RBA) is anticipated to maintain its cash rate at 3.60% during the upcoming December 9 meeting, with projections indicating this rate will persist through 2026. This outlook marks a shift from earlier expectations of potential rate cuts in 2026, influenced by higher-than-expected inflation and a robust economic environment. - read more
In response to escalating property prices and accelerated credit growth, the Australian Prudential Regulation Authority (APRA) has announced a new regulatory measure to cap high debt-to-income (DTI) home loans. Effective February 2026, banks and authorized institutions will be restricted to issuing no more than 20% of new home loans with DTI ratios of six times or higher. - read more
The Australian Securities and Investments Commission (ASIC) has conducted a comprehensive review of the private lending sector, revealing significant inconsistencies and deficiencies. This scrutiny comes in response to the sector's rapid growth, with private credit extending approximately $200 billion in loans, primarily to higher-risk real estate players and property developers. - read more
The Australian Prudential Regulation Authority (APRA) has announced a significant policy change aimed at mitigating risks in the housing market. Effective 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 Commonwealth Bank of Australia (CBA), the nation's largest lender, has reported a modest increase in its first-quarter cash profit, driven by robust growth in home loans and household deposits. The unaudited cash profit for the quarter reached approximately A$2.6 billion, marking a 1% rise from the previous two-quarter average and a 2% increase compared to the same period last year. - 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
The loan approval process can often seem complex and daunting, but understanding what it entails is the first step toward boosting your chances. In essence, loan approval is the lender's process of assessing whether you are a viable candidate for the loan you have applied for. This involves evaluating your financial history, current financial status, and the potential risks involved in lending to you. - read more
Debt management involves strategies and practices designed to help individuals control their debt and maintain a healthy financial standing. It includes everything from budgeting and tracking expenses to negotiating better terms with creditors and consolidating debts for easier repayment. - read more
Personal loans are a financial tool that many young professionals consider when they need extra funds. Whether it's for consolidating debt, covering unexpected expenses, or making a big purchase, personal loans can provide the flexibility you need to manage your finances effectively. - read more
As Australians navigate their personal financial journey, understanding how to manage debt effectively becomes crucial. From dealing with various lines of credit to juggling personal loans, the concept of debt consolidation often emerges as a viable strategy to regain control of financial health. This guide delves deep into the heart of debt consolidation's landscape in Australia, offering a comprehensive examination of what it entails, its benefits, and its potential drawbacks. - read more
Need Help Finding a Loan?
Find out now if you qualify and
compare rates, offers and options from multiple lenders - without a credit check!
All finance quotes are provided free (via our secure server) and without
obligation. We respect your
privacy.
Knowledgebase
Yield: The income return on an investment, such as the interest or dividends received from holding a particular security.
