Home loan savers suffer slashed interest rates of the big...

Home loan savers suffer slashed interest rates of the big four: Ratecity

Staff reporterDecember 7, 2020

ANZ is the last of the big four banks to cut their savings account rates, following the Reserve Bank’s decision to cut the cash rate earlier this month.

They have reduced the rates on their Progress Saver and Online Saver accounts by 0.20% – 2 basis points more than they passed onto their home loan customers on 14 June 2019.

ANZ offer the highest ongoing savings rate out of the big four of 2.20%, while Westpac offers the highest introductory rate of 2.31% for a period of five months.

“Introductory rates have become the white elephant of banking,” RateCity.com.au research director Sally Tindall said.

“All four big banks have slashed their base rates to just 0.30% interest, when inflation is sitting at 1.3%. That’s a nightmare equation for anyone trying to save."

RateCity.com.au data shows that over 47 banks have dropped their savings rates since the RBA cash rate cut on June 4, including ING, AMP, Bank of Queensland, ME, Suncorp and Bendigo, in addition to the big four banks.

According to RateCity.com.au’s database the average cut to savings account rates by banks who have moved is 0.23%, while the maximum cut on the database is 0.50%.

As a result of all the changes, the average savings account rate is now 1.55%.