Save
How savers are feeling the pinch as popular banks drop rates
Savers, retirees in particular, will continue to feel the pinch as the big four begin cutting interest rates on cash accounts.
How savers are feeling the pinch as popular banks drop rates
Savers, retirees in particular, will continue to feel the pinch as the big four begin cutting interest rates on cash accounts.
ANZ and NAB have cut the rates today to 0.15 and 0.11 per cent, respectively, following introductory rates.
Canstar’s finance expert, Steve Mickenbecker, believes investors can shop around to find a better deal as some providers are still offering around 2 per cent on savings accounts.
“The introductory rate of 1.95 per cent on offer from ANZ and 2.11 per cent from NAB may sound appealing enough, but savers have to be aware the honeymoon is over after a few short months to be replaced with the reality of a 0.15 per cent or 0.11 per cent interest rate,” said Mr Mickenbecker.
“All four of the major banks reduced their online savings rates to 0.30 per cent in the aftermath of the June cash rate cut. There’s now an expectation that the other two banks will follow ANZ and NAB’s lead with similar cuts,” continued Mr Mickenbecker.
How low can it go?
Australia is facing the prospect of zero rates for savers, which would mean savers are paying the banks to hold cash reserves, according to Mr Mickenbecker.
“There are plenty of zero rates around the world and you think people are going to pay you to have money sitting in their vaults?” said Mr Mickenbecker.
“But apparently the wheels haven’t fallen off in Japan and some European countries when they have gone to zero rates, so it can happen,” continued Mr Mickenbecker.
This email address is being protected from spambots. You need JavaScript enabled to view it.
About the author
About the author
Savings account
COVID-19 sees Aussies reach record-high wealth
New stats have revealed that Aussies are now richer than ever, having stashed away their cash during a year marred by the COVID-19 pandemic and the resulting economic shutdown. ...Read more
Savings account
Saving more during the pandemic? Here’s where that money should go
If you’re finding that you’re saving more during the pandemic, you’re not alone. ...Read more
Savings account
Aussie savings goals put on hold due to COVID-19 pandemic
The COVID-19 pandemic has seen Australians being forced to dip into their life savings, which is impacting their ability to achieve financial goals, new research has found. ...Read more
Savings account
The 4 types of COVID-19 consumers: Which one are you?
Australians are still living in fear of worsening economic conditions, with a study revealing changed spending behaviours across the board despite varying levels of individual financial impact. ...Read more
Savings account
Are you a victim of financial abuse? 22 questions to consider
An “invisible” form of abuse, family violence that uses money as a method of control and coercion, is a real issue in Australia. ...Read more
Savings account
Another $750 payment on way for pensioners
From today, the second cash payment that has formed part of the Australian government’s economic response to the coronavirus will be made available. ...Read more
Savings account
Big 4 bank busts out 3 per cent savings interest rate
But not everyone is eligible for the new rate, which is far beyond anything else on offer from an Australian bank. Are you? ...Read more
Savings account
Bank balances reveal Aussies are prepping for life post-COVID
Australians are bunkering down for life post-COVID-19, with new analysis revealing median bank balances are up 45 per cent from the pre-pandemic period. ...Read more
Savings account
COVID-19 sees Aussies reach record-high wealth
New stats have revealed that Aussies are now richer than ever, having stashed away their cash during a year marred by the COVID-19 pandemic and the resulting economic shutdown. ...Read more
Savings account
Saving more during the pandemic? Here’s where that money should go
If you’re finding that you’re saving more during the pandemic, you’re not alone. ...Read more
Savings account
Aussie savings goals put on hold due to COVID-19 pandemic
The COVID-19 pandemic has seen Australians being forced to dip into their life savings, which is impacting their ability to achieve financial goals, new research has found. ...Read more
Savings account
The 4 types of COVID-19 consumers: Which one are you?
Australians are still living in fear of worsening economic conditions, with a study revealing changed spending behaviours across the board despite varying levels of individual financial impact. ...Read more
Savings account
Are you a victim of financial abuse? 22 questions to consider
An “invisible” form of abuse, family violence that uses money as a method of control and coercion, is a real issue in Australia. ...Read more
Savings account
Another $750 payment on way for pensioners
From today, the second cash payment that has formed part of the Australian government’s economic response to the coronavirus will be made available. ...Read more
Savings account
Big 4 bank busts out 3 per cent savings interest rate
But not everyone is eligible for the new rate, which is far beyond anything else on offer from an Australian bank. Are you? ...Read more
Savings account
Bank balances reveal Aussies are prepping for life post-COVID
Australians are bunkering down for life post-COVID-19, with new analysis revealing median bank balances are up 45 per cent from the pre-pandemic period. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
