Just when many Australians were struggling to save money during the cost of living crisis, one of the country’s biggest banks has slashed the interest rate on customers’ savings accounts unless they meet new conditions. ANZ has dropped its ongoing rate on Plus Save accounts from 4.9 per cent to 0.
5 per cent unless customers grow their balance by at least a $100 each month. Customers who meet the new terms will receive a bonus 4.5 per cent, taking the maximum ongoing rate to 5 per cent.
The announcement follows a similar move by Westpac last month, which cut its base rate by 0.15 per cent and increased its bonus rate by the same amount. It meant Westpac Life customers could still earn a maximum rate of 5 per cent, but only if they increased their balance each month.
The Australian Competition and Consumer Commission found about 71 per cent of bonus interest accounts missed out on bonus interest in any given month. RateCity.com.
au money editor Laine Gordon said the move from ANZ was a double-edged sword for savers. “People who can squirrel away an extra $100 or more each month into their ANZ Plus Save account will be rewarded with a rate hike,” she said. “Others who can’t squeeze any extra savings from their budget, however, will see their savings goals take a major hit.
“Keen savers can now get ongoing rates of 5 per cent or even higher, however, customers would do well to read the fine print. “The majority of these high interest accounts are riddled with speci.