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 Australian Securities and Investments Commission (ASIC) has conducted a comprehensive review of the motor vehicle finance sector, uncovering significant issues that adversely affect consumers. This investigation was initiated in response to a surge in complaints regarding high costs associated with car financing. - read more
In a bold move towards environmental sustainability, Bank Australia has ceased offering loans for new petrol, diesel, and hybrid vehicles as of February 2025. This policy change aligns with the bank's commitment to achieving net-zero carbon emissions by 2035. - read more
In a significant move to promote sustainable transportation, the Commonwealth Bank of Australia (CommBank) has introduced discounted loans for electric and hybrid vehicles, specifically targeting essential workers and individuals earning less than $100,000 annually. This initiative aims to make environmentally friendly vehicles more accessible to a broader segment of the Australian population. - read more
In a significant move to promote sustainable transportation, the Australian government has introduced a new loan scheme offering low-interest financing for electric vehicles (EVs). This initiative targets Australians earning less than $100,000 annually, as well as essential workers such as police officers, teachers, firefighters, and nurses, regardless of their income level. - read more
Recent data indicates a sharp increase in car repossessions across Australia, signaling escalating financial distress among households. Automotive auction house Pickles has reported a 13% rise in repossessed vehicles over the past six months, with an 11% increase in the last quarter alone. - read more
In this article, we are embarking on a guided journey that we believe will help immensely in navigating the intricacies of the car loan process. - read more
Before taking the plunge into car ownership, it's crucial to have a clear view of your current financial health. Start by evaluating your income, monthly expenses, and any savings you may have set aside. This assessment will give you a realistic picture of how much you can allocate towards buying a car without straining your finances. - read more
Stepping into the world of auto financing can be as daunting as it is exciting. The commitment of a new car loan demands more than just desiring your dream car; it necessitates a balanced budget and a solid financial plan. Understanding how to prepare before signing on that dotted line is not only wise, it’s imperative for your financial health. - read more
When it comes to owning a car in Australia, many of us view it as a symbol of freedom, an essential convenience, or even a reflection of our personal style. Yet, for all the road trips planned and errands run, the cost of owning a car extends well beyond the sticker price. - read more
Buying a car is an exciting milestone, but it's crucial to approach the process with a clear financial plan in place. Before you get swept away by the shiny showroom models or the thrill of a test drive, understanding the financial implications of purchasing a vehicle can save you from future stress and unwanted debt. Preparing before applying for a car loan is not just recommended; it's a necessary step that directly influences loan terms and your chances of approval. - read more
Need Help Finding a Loan?
Get a free car loan eligibility assessment and compare offers tailored
specifically to your circumstances.
All finance quotes are provided free (via our secure server) and without
obligation. We respect your
privacy.
Knowledgebase
Securities: Financial instruments that represent ownership in a corporation (stocks), a creditor relationship with a corporation or government (bonds), or rights to ownership (options).
