For millions of Australians diligently saving for a home deposit, every dollar counts.
But a quiet, yet significant, shift in the banking sector is making that property dream just a little bit harder to achieve, even as the Reserve Bank of Australia holds the official cash rate steady.
Major bank ANZ has this delivered a blow to its savings account customers, slashing rates on several popular products.
The bank has trimmed rates by 0.10 percentage points on its Progress Saver, Plus Growth Saver, and Plus Progress Saver accounts.
While its Online Saver product remains unchanged, the adjustments mean the Progress Saver now offers a maximum ongoing rate of 3.05 per cent.
The Plus Growth Saver and Plus Progress Saver both sit at 4.15 per cent, though the latter drops significantly to 1.15 per cent for balances exceeding $5000 – a critical detail for those accumulating substantial deposits.
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ANZ has cut interest rates on its Progress Saver, Plus Growth Saver and Plus Progress Saver accounts ahead of the RBA’s November meeting.
While rate cuts are generally celebrated – slashing rates on saver accounts generally leads to lower interest earnings, which erodes purchasing power over time, especially if inflation is high.
Savers may find it harder to reach their financial goals, such as saving for a down payment or retirement, because their money grows more slowly.
Canstar data insights director Sally Tindall told Yahoo Finance that the move showed banks were moving even if the RBA wasn’t.
“ANZ’s decision to trim savings rates ahead of the November RBA meeting is a timely reminder that even when the cash rate is on hold, banks can, and do, adjust their rates,” she said.
“While the latest round of cuts from ANZ may disappoint many of its savings customers, across the banks that have recently changed rates, it’s more of a mixed bag.”
More hurdles for savers
ANZ isn’t alone in recalibrating its savings offerings.
Westpac, along with its subsidiaries St.George, Bank of Melbourne, and BankSA, recently cut the base rate on their bonus accounts by 0.15 percentage points.
While the bonus rate increased by the same amount, it means customers who fail to meet monthly conditions will earn less – a common tactic to encourage specific customer behaviour.
More controversially, Westpac has also tweaked bonus conditions on its popular Spend & Save account for younger customers.
They will now need to make 20 purchases on their linked transaction account, a substantial increase from the previous five, to qualify for the maximum bonus interest.
Mozo personal finance expert Kylie Moss highlighted the increased effort required.
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RBA Governor Michele Bullock during a press conference. Picture: NewsWire / Nikki Short
“Westpac’s decision to bump up the purchase requirements from 5 to 20 is a substantial move designed to compel customers seeking their leading savings rate to funnel all their daily spending through the Westpac Choice account,” she told Yahoo Finance.
For young Australians striving to save for a deposit, this means more hoops to jump through just to maintain their earning potential.
Other digital banks, popular with younger demographics, have also made changes.
UBank now requires customers to grow their savings balance by at least $1 to qualify for the maximum rate, while Up Bank customers must make no withdrawals to secure their top rate. These conditions, while seemingly minor, add complexity and potential pitfalls for those trying to maximise their savings for a property purchase.
Looking ahead, ANZ’s economic team anticipates the RBA will hold interest rates in November, with a final rate cut predicted in the first half of 2026, most likely in February. Commonwealth Bank and NAB share this expectation for next month.
Westpac, however, believes the recent jump in unemployment keeps a 25 basis point cut “live” for November, pending crucial inflation data.
Any future RBA cuts would offer relief to mortgage holders, but for savers, it could signal further downward pressure on deposit rates.
The top ongoing rates available on Canstar’s database, along with their conditions
Westpac Life Spend & Save:
5 per cent maximum rate when you grow your balance and make five purchases a month (increasing to 20 from October 30, with the age range expanding from 18-29 to 18-34).
BOQ Future Saver:
4.85 per cent maximum rate when you deposit $1,000 and make five purchases per month. For 14 to 35 year olds and balances up to $50,000.
ING Savings Maximiser:
4.80 per cent maximum rate when you deposit $1,000, make five eligible purchases and grow savings balance. For balances up to $100,000.
Great Southern Bank:
4.60 per cent maximum rate when you deposit $500 and make five purchases a month. For 18 to 24 year olds.
Up:
4.60 per cent maximum rate when you make five transactions per month with no withdrawals.
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