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.
The latest Reserve Bank of Australia lending rate data gives small business owners a timely reminder: the cost of finance is still highly dependent on borrower profile, loan size, security and lender appetite. For May 2026, the average rate on new small business loans sat at 7.26% per annum, compared with 6.12% for medium businesses and 5.49% for large businesses. - read more
The latest Reserve Bank of Australia financial aggregates show that borrowing demand has remained resilient, with business credit again leading the way. Released on 30 June 2026, the May figures show total credit rising by 0.7% over the month and 8.2% over the year. Within that, lending to non-financial businesses rose 1.0% in May and 9.9% across the year, outpacing both housing and personal credit. - read more
The Reserve Bank of Australia has released a new framework explaining how it would approach additional monetary policy tools if the cash rate were again pushed close to zero and the economy still needed support. While that may sound distant from today’s lending market, the document matters for borrowers because it clarifies how the central bank thinks about future credit conditions, lender funding costs and the transmission of lower rates through the economy. - read more
The latest Reserve Bank of Australia credit figures show borrowers are still leaning on finance, even as elevated interest rates continue to test household budgets and business cash flow. The April 2026 data points to a lending market that is not retreating, but becoming more selective, with business credit remaining the strongest area of growth. - read more
The Reserve Bank of Australia (RBA) has decided to maintain the official cash rate at 4.35% during its June 2026 meeting. This decision comes amidst a backdrop of economic uncertainties and persistent inflationary pressures. - read more
For many self-employed Australians, securing a loan can feel like a daunting task. Unlike salaried employees, self-employed individuals often face unique challenges when it comes to proving their income stability and financial health. - 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
When applying for a loan in Australia, it's essential to have a clear understanding of the loan application process. Whether you are applying for a home loan, personal loan, or business loan, knowing the necessary steps and having all the required documents ready can save you time and frustration. - 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
Principal: The original sum of money invested or lent, on which basis interest and returns are calculated.
No comments yet. Be the first to share your thoughts.