Mozo Money Moves: Big Four ‘click and collect’ borrowers, ANZ slashes fixed rates and savings rates slide

Welcome back to Mozo Money Moves, your weekly interest rate wrap that keeps you up to date with what’s been going on in the world of personal finance.

This week, sticky unemployment figures didn’t do much to move the needle on the consensus that the Reserve Bank of Australia (RBA) will hold the cash rate at 4.10% at their next cash rate meeting.

Meanwhile, the Big Four banks made money moves in home loans and savings to ‘click and collect’ digital customers. It looks like the banks are switching focus, which could leave traditional banking customers in the dust.

Unemployment sticks at 4.1%

On Wednesday, the Australian Bureau of Statistics(ABS)  released the latest unemployment data, which showed the unemployment rate stuck at 4.1% (seasonally adjusted) for the month of February. Despite 52,800 people losing their jobs, 11,2000 gained employment.

So what does this mean for the RBA decision in two weeks and how could it impact interest rates? Well, according to the markets - not much. The ASX RBA Rate Tracker that is tracking market expectations of a cut at the next RBA meeting, increased by only 2%, from an 8% chance of a cut on the 19 March, to 10% after the release of the unemployment data.

“Markets are pricing in a very small chance of the RBA cutting the cash rate at their next meeting, and with the job market holding steady it’s likely the RBA will take a ‘wait and see’ approach,” says Rachel Wastell, Mozo’s money expert.

“The quarterly CPI release at the end of April will be the data that gives the RBA the crucial insight they need ahead of their May cash rate decision. If inflation starts to rear its ugly head again and shows signs of sticking around, that’s when the RBA may need to make some tough decisions.”

“Potentially they could continue to hold the cash rate for an extended period or, potentially, they could have to hike again to ensure that inflation doesn’t get out of control.”

Big Four ‘click and collect’ low-risk borrowers

This week, Westpac launched its Online Home Loan, following in the footsteps of Commbank and ANZ offering borrowers much lower variable rates than what’s on offer for traditional banking customers. Borrowers refinancing from a non-Westpac Group loan who apply online for Westpac’s new digital refinancing loan will receive an ongoing variable rate 0.35% p.a. lower than existing customers or those applying in branches on the Flexi First Option loan.

The new online home loan offers owner occupiers with 30% equity in their home (70% LVR) a rate of 5.84%p.a. (5.85%p.a. comparison rate*) and with 20% equity in their home (80% LVR) a rate of 5.94%p.a. (5.95%p.a. comparison rate*).

“The Big Four are in ‘click and collect’ mode when it comes to snapping up borrowers, offering cheaper rates for digital mortgages to lower-risk customers with more equity or larger deposits,” says Wastell.

“Rolling out these digital-only offerings for refinancers allows the banks to collect higher quality borrowers at a fraction of the price, as they cut out the overhead costs typically associated with brokers, branches and paperwork.”

Lowest Variable Rates from Big Four/Big Four Digital Brands (70% LVR)

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

Lowest Variable Rates from Big Four/Big Four Digital Brands (80% LVR)

Westpac is favouring lower-risk borrowers with their digital loans, offering 0.10%p.a. lower rates for borrowers with a 30% deposit or equity in their home. Commonwealth Bank also favours borrowers with an LVR of 70% (although the difference is a measly 0.02%) while NAB and ANZ offer the same rate for borrowers across 80 and 70% LVR tiers.

“Until now Westpac has been trailing behind in the digital mortgage wars,” says Wastell, “but they have finally joined the party by rolling out this online-only refinance loan with rates starting with five.”

Major Australian banks are not only rolling out digital home loans, but are also backing digital and app-only banks. Commbank backs digital lender Unloan, ANZ has its digital brand ANZ Plus, and NAB backs digital lender ubank. Bendigo and Adelaide Bank back Tiimely Home (Mozo’s Best Home Lender for 2025) and Up.

“The refinancer only digital rate means that the lowest variable rate on offer from Westpac is only available to refinancers,” says Wastell.

“It will be interesting to see whether Westpac will join the likes of the other Big Four banks in backing a digital lender under a different brand anytime soon, to extend the offer of lower variable rates to new buyers.” 

ANZ finally offers 1 year fixed rate starting with 5

Today, ANZ cut its one-year fixed rate home loans by 25 bps for owner occupiers and 15 bps for investors paying principal and interest. It also cut 10 bps off its one year fixed rates for investors paying interest only.

This is the first time ANZ has cut fixed rates since October 2024, and ANZ now has a 1 year fixed rate starting with 5. NAB, and Westpac both cut one year fixed rates prior to the RBA’s move in February, Commbank cut its one year fixed rate after the RBA decision. Today ANZ has joined the party, and sits in second place in the Big Four 1 year fixed rate rankings, just behind Westpac.

ANZ is offering owner occupiers one year fixed rates of 5.89% p.a. (6.66% p.a. comparison rate*) for borrowers with a loan-to-value ratio (LVR) of 80%  (with a deposit or equity of at least 20%) making principal and interest repayments. These 1 year fixed rates also offer access to the ANZ One Offset account, but for a $10 monthly fee.

Lowest 1 Year Fixed Rates of Big 4 - $500k, 80% LVR

ANZ’s move follows fixed rate cuts from IMB Bank, Illawarra Credit Union, Greater Bank and Newcastle Permanent, which cut between 5 - 30 bps off various fixed rate terms, and cuts from Macquarie on Thursday – that pushed Australia’s fifth biggest lender into the top tables for 2 year fixed rates. 

Macquarie slashed a range of fixed rate home loans for owner occupiers and investors making principal and interest payments. The 1 year fixed by 20 bps, 2 and 3 year fixed by 16 bps and the 4 and 5 year fixed by 10 bps.

A split loan could help borrowers have their cake and eat it too

In light of the multiple cuts to fixed rates this week, Mozo is urging homeowners to think about their refinancing options, and be proactive with their home loans – rather than relying on future cuts from the RBA.

“Just because the RBA kicked off the rate cutting cycle last month (and most lenders passed the cut on) doesn’t mean future RBA cuts will be passed on in the same fashion.”

There is a level of economic uncertainty ahead, especially with the risk that Trump’s tariffs could fuel inflation, or slow down the pace of the rate cutting cycle. A split loan, where borrowers lock part of their home loan into a fixed rate and the other into a variable rate, could work as a clever diversification tool, and help homeowners hedge their bets in times of economic uncertainty.

"Essentially, with a split loan, borrowers can have their cake and eat it too,” says Wastell.

“Borrowers would need to see around four rate cuts of 25 bps over the next two years for the average variable rate to drop down to the leading two year fixed rates on offer right now.”

The leading two year fixed rates are sitting around 1%p.a. lower than the average advertised variable rate on the Mozo database which is 6.41% for borrowers with an LVR of < 70% making principal and interest repayments on a $400,000 home loan.

Lowest 2 Year Fixed Rate Home Loans (70%LVR)

Savings rates slashed after RBA move

Since the RBA cut the cash rate last month, just over 90% of banks in Mozo’s database have either cut or announced cuts to savings rates. 

“Right  now, banks are promoting home loan rate cuts because they’re a win for borrowers, but savings rate cuts are happening in the background,” says Wastell.

“While banks are quick to announce the cuts to home loan rates when the cash rate drops, savings accounts don’t get the same fanfare. Instead, they quietly shave rates—often in ways that aren’t immediately obvious to customers.”

Looking at the depth of cuts and the types of rates being cut, Mozo analysis shows a few key trends emerging in savings accounts:

• Base rates are being gutted – Westpac, CBA, and ING have kept bonus rates high while slashing the base rate (what you earn if you don’t meet bonus conditions).
• The depth of cuts varies: some banks have cut deeper than 0.25%, some less, depending on their strategy and the brands or accounts they want to promote.
• Some banks are moving twice: both NAB and ANZ have changed savings rates twice since the RBA move, highlighting the importance of keeping an eye on interest rates.

“The devil’s in the details, and for savings accounts, that is mostly concerning the criteria savers need to meet in order to secure high bonus rates of interest,” explains Wastell. 

“Many savings accounts will advertise very high rates, but to actually earn them savers often have to jump through a number of hoops. If they don’t meet the requirements, they end up with the base rate of interest, which can in some cases mean savers end up earning no interest at all.”

NAB and ANZ cut savings rates twice after RBA move

On Monday, ANZ axed the 2.25% introductory bonus on its Online Saver account, bringing the total maximum rate down to just 1.15% p.a. This followed a 0.25% cut on February 28, reinforcing the trend of shrinking savings rates at the big banks. 

ANZ Progress Saver was also cut by 0.10%, and now offers a 3.75% p.a. bonus rate, which reverts to a 0.01% rate if the conditions are not met. Savers must deposit at least $10 in one transaction, and not make any withdrawals or transfers or incur any fees or charges during a calendar month.

“ANZ just pulled the rug out from underneath its savers by removing its intro rate to offer a measly 1.15% p.a. This is a far cry from what’s available elsewhere, including the rate on offer from ANZ’s digital brand ANZ Plus.”

ANZ Plus customers can still access a 4.75% p.a. bonus rate on their ANZ Save account when they grow their ANZ Save balance by $100 or more on top of any interest they receive each month. They can also get a 4.75% p.a. rate on the Flex Saver accounts for balances up to $5,000 without monthly qualifiers or needing to make minimum deposits.

“This move is a clear signal that ANZ is pushing customers toward ANZ Plus savings products, which offer far more competitive rates, especially for savers with less than $5,000 who can get a 4.75%p.a. rate without meeting any bonus conditions," explains Wastell.

“With interest rates varying so dramatically between banks it’s more important than ever for savers to shop around. The gap between a 1.15% and 4.75% per annum savings rate can really add up, and those sticking with sub-par rates could be missing out on hundreds of dollars in potential interest.”

Annual Interest - ANZ  & ANZ Plus Savings Accounts

Annual difference in Interest between ANZ & ANZ Plus

• $185 - between ANZ Online Saver and ANZ Plus accounts on a $5k balance
• $369 - between ANZ Online Saver and ANZ Plus ANZ Save account on $10k balance
• $52- between ANZ Progress Saver and ANZ Plus accounts on a $5k balance
• $103 - between ANZ Progress Saver and ANZ Plus’ ANZ Save account on a $10k balance

NAB cuts bonus rate but increases intro rate

Today, NAB followed ANZ by making a second change to its savings accounts after the RBA cut rates. NAB increased its iSaver introductory rate by 15 bps and decreased its Reward Saver ongoing bonus by 10 bps.

What is essentially a switch in the savings rates suggests that NAB is trying to lure in new customers to its digital savings product with the additional interest, rather than rewarding existing customers who meet bonus conditions.

“This is just another example of how the Big Four banks are pushing savers to go digital, and the focus on securing new savings account customers rather than rewarding existing customers,” says Wastell.

“The click and collect model these big banks are taking when it comes to home loan rates is also starting to emerge in the savings space, so now is the time for savers to double check their rate and if they can get a better deal outside the majors.”

Big Four not offering the best savings rates

“For savers still with the Big Four, now is the time to compare,” stresses Wastell. “Challenger banks, specialist banks and smaller regional lenders are leading the charge when it comes to deposit rates, and if you want to make the most of your hard earned money, you shouldn’t be settling for less.”

According to Mozo’s database, the Big Four are not offering savers the best returns:

• Best bonus rate: ING Savings Maximiser 5.40% p.a. (balances up to $100k), but base rate drops to 0.05% if conditions aren’t met
• Best introductory rate: Rabobank High Interest Savings Account 5.45% p.a. for 4 months, then reverts to 4.00% p.a.  (balances up to $250k)
• Best unconditional rate: Australian Unity 4.85% p.a. (balances up to $250k), followed by Heartland  (balances up to $350k) and Macquarie at 4.75% p.a. (up to $1m)

To see which banks are offering some of the lowest savings rates on the Mozo database, and whether you could be earning more interest, start comparing here.

As a part of Mozo’s commitment to making your money count for more, each month we “roundup” the rate changes, key banking trends and money moves in the Australian personal finance market. 

Make sure you don’t miss out on the latest in banking news by signing up for Moneyzone and if you’d like to see the analysis in full once it’s released, you can subscribe to receive the Mozo Banking Roundup here.

Disclaimer: Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice. Target Market Determinations can be found on the provider's website. While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.