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.â€
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.
Recent personal and vehicle loan rate updates are reinforcing a practical message for Australian borrowers: the reason you borrow, the asset involved and the strength of your application can still make a meaningful difference to the price you are offered. - read more
The latest Reserve Bank lending-rate data gives Australian small business owners another reason to look beyond the first offer on the table. While business credit has continued to expand through 2026, the price paid by smaller borrowers remains highly dependent on loan structure, security, trading history and lender appetite. - read more
The Reserve Bank’s latest financial aggregates add another chapter to the borrowing story that has been building through 2026. The July update indicates that private sector credit is still expanding, with business lending remaining an important source of momentum. For SMEs, sole traders and self-employed borrowers, this extends the pattern seen in the earlier June credit data: demand for funding has not disappeared, even while interest rates and lender scrutiny continue to shape approval outcomes. - read more
The Reserve Bank’s latest meeting minutes have added more detail to the message borrowers heard after the earlier August rate decision: policy makers are not yet ready to declare victory over inflation, even if some parts of the economy are clearly slowing. For households, sole traders and SMEs, that means borrowing plans still need to be built around current lending conditions rather than expectations of a quick fall in rates. - read more
The Reserve Bank of Australia’s August decision to leave the cash rate unchanged at 4.35% keeps a familiar message in place for Australian borrowers: relief may come eventually, but loan decisions still need to be made on today’s numbers. For households, sole traders and SMEs, the practical issue is not only where rates sit now, but how lenders assess affordability while policy remains restrictive. - read more
Financial health is a crucial aspect of overall well-being, particularly in the ever-evolving economic landscape of Australia. The capacity to manage personal finances effectively not only provides a sense of security but also opens doors to opportunities that might otherwise be out of reach. As such, mastering the art of money management is an indispensable skill for Australians from all walks of life. - read more
Understanding your borrowing power is an essential step for anyone looking to take out a loan. This concept represents the amount of money you're eligible to borrow from a lender, whether it’s for purchasing a home, a car, or investing in your future. Knowing your borrowing power not only sets realistic expectations but also guides you in financial planning and budgeting for your loan repayments. - read more
Australian borrowers have important protections when applying for and managing loans, but they also have responsibilities. This guide explains responsible lending, loan hardship assistance, credit reporting rights, complaints pathways and practical steps to help borrowers stay informed. - read more
Applying for loans online has become a convenient and efficient way to secure funds for various purposes. With just a few clicks, individuals can submit their applications and receive a decision within a short span of time. However, it is important to approach the online loan application process with caution to avoid common mistakes that could potentially affect the outcome of the application. - read more
Understanding your credit score is crucial, especially when you're looking to secure a loan. Whether it's for a home, a car, or personal use, a good credit score can make a significant difference in the type of loan you qualify for and the interest rates you'll be offered. - 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
Mutual Fund: An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and other assets.
No comments yet. Be the first to share your thoughts.