Seesawing rates: ANZ hikes Progress Saver to 2.40%, reduces Online Saver offer

ANZ has well and truly bucked the long term downwards trend among saving rates this morning after injecting a significant rate increase to one of its main savings accounts.

The major bank lifted the ongoing bonus rate on its Progress Saver account by a whopping 69 basis points from 1.71% to 2.40% for savers who are able to meet the minimum monthly deposit and withdrawal requirements.

That lifts the ANZ Progress Saver, which features no monthly account fee, above the average ongoing bonus saving account rate in the Mozo database of 2.24%.*

ANZ’s changes weren’t all rosy for prospective savers though, with the bank cutting its Online Saver three month introductory rate by 25 basis points from 2.55% to 2.30%.

RELATED: 3.00% and falling: Saving pain continues, but this is why the savings account you choose still matters

So what difference could the 0.69% increase actually make?

According to the Mozo savings calculator, an ANZ customer who is able to meet the ongoing bonus savings rate requirements, has a starting savings account balance of $10,000 and makes consistent deposits of $400 a month would end up with a final balance of $25,291 after three years on the former 1.71% rate.

However, the same saver would end up with a final balance of $25,661 - or $370 more - after three years under the new 2.40% bonus rate.

How does the ANZ Progress Saver compare?

While the Progress Saver account has leaped above the average ongoing bonus saving account rate in the Mozo database, it still remains well below some of the offers currently towards the top of the market.

According to Mozo figures at the time of writing, ANZ’s account falls 47 basis points short of the top rate in the Mozo database - the 2.87% bonus rate currently offered with the UBank USaver with Ultra Transaction Account.

Top ongoing bonus rates*

However, ANZ’s rate hike does mean the Progress Saver account is now nestled between the savings account rates offered by two of its major bank competitors in NAB and Westpac, and it sits well above the equivalent offer from the Commonwealth Bank.

Big 4 ongoing bonus rates

2.50%NAB Reward Saver
2.40%ANZ Progress Saver
2.30%Westpac Life
1.65%Commonwealth Bank GoalSaver

According to Mozo Data Manager, Peter Marshall, while ANZ’s saving account offer may prove more attractive with the new rate, savers shouldn’t become complacent.

“The new 2.40% bonus rate offer on the Progress Saver account is quite a rise from the previous rate, but just because it’s a decent rate now doesn’t mean it’s always going stay that way,” he said.

“There’s always the potential for volatility with savings accounts as banks shift rates up and down, so it could not only pay off to keep a close eye on the rate you're getting, but to be prepared to switch if the offer you’re getting isn’t up to scratch.”

RELATED: ANZ and Commonwealth Bank launch new digital wallet features as adoption levels soar

Interested in looking at a full range of savings account offers? At Mozo we compare over 200 accounts from 69 different banks, so start your search today by comparing long term, high interest and even kids savings accounts over at the Mozo savings account comparison hub.

*Accurate as of October 29, 2018.