‘No strings attached’: Aussies urged to do one thing as banks cut rates

ANZ has become the latest bank to cut the interest rate offered to savers, even as the Reserve Bank of Australia has held the cash rate since August.

The big four bank has reduced interest rates across three of its products by 0.10 per cent.

ANZ will now offer a new maximum ongoing rate of 3.05 per cent on its Progress Savers account, 4.15 per cent on its Plus Growth Saver accounts and 4.15 per cent on its Plus Progress Savers for the first $5,000 saved before reverting to 1.15 per cent.

The move from the bank comes prior to an expected interest rate cut when the Reserve Bank of Australia meets on Melbourne Cup day.

Canstar data insights director Sally Tindall warned savers that Wednesday’s announcement is a timely reminder banks can do what they want with their interest rates.

“Even when the cash rate is on hold, banks can, and do, adjust their rates,” Ms Tindall said.

According to Canstar’s data, ANZ is not alone in reducing its savings offerings to customers over the last five weeks.

Bendigo Bank decreased its Reward Savers bonus rates by 5 basis points.

Westpac, St George, Bank of Melbourne, Bank SA cut the base rate on their bonus saver accounts by 0.15 per cent, but boosted the bonus rate by the same amount, so the changes impact only customers who don’t meet the monthly terms and conditions.

IMB cut the bonus rates for its main savers accounts by 0.25 per cent but increased its introductory offer for the first four months by the same amount.

NAB bucked the trend and marginally lifted ongoing savings rates for its Reward Savers account by 0.05 per cent.

Savers will now get 4.15 per cent if they meet the monthly criteria.

Ms Tindall urged Australians to read the fine print as “it’s never mattered more.”

“All of the highest ongoing savings rates on the Canstar database come with strings attached in order to qualify for the maximum rate, from making a certain number of transactions, to growing your savings balance – even a single withdrawal can tank some savings rates,” she said.

Despite the interest rate cuts, savers can still get interest rates above 4 per cent.

“For those that long for a less complicated savings account, know there are still some offering ongoing rates over 4 per cent with no strings attached,” Ms Tindall concluded.