AMP drops interest rate on its Bett3r Save account
AMP today slashed its market-leading 3.00% interest rate on the Bett3r Save account down to just 2.25% p.a.
Bad news if you've currently got your savings stashed with AMP. The bank today dropped the maximum variable interest rate offered on its Bett3r Save savings account from 3.00% p.a. down to just 2.25% p.a. The move reflects a drop of 75 basis points, bringing the previously market-leading interest rate down to not much more than the rate of inflation.
This move by AMP will hurt savers who currently have their money sitting in AMP's Bett3r Save account. AMP Bett3r is a unique, three-account bundle that comes with linked Spend, Save and Pay accounts, designed to help customers budget effectively and manage their spending.
The Bett3r Save account offers an ongoing, standard interest rate of 1.5%. If customers deposit $2000 into the linked Bett3r Pay account from an external source (that is, not from an existing AMP account) they'll also be eligible to receive a bonus interest rate of 0.75%, down from the previous 1.50%. The new maximum rate of 2.25% is certainly stronger than some accounts. However, it's also a lot lower than many others in the market.
Almost all bonus saver accounts come with some form of deposit requirement to achieve the bonus interest rate, but $2000 each month is quite high for what is now a not-so-great interest rate. For comparison, the popular ING Savings Maximiser account offers a maximum variable interest rate of 2.80% with a monthly deposit requirement of $1000. The ME Online Savings account offers a maximum variable interest rate of 2.85% and no monthly deposit requirement, but instead requires customers to make at least one weekly tap and go payment with their linked ME transaction account.
AMP isn't the only bank to drop its interest rate on a savings product of late, though the large drop of 75 basis points at once rather than staggered over several months certainly makes this move a lot more noteworthy.
If you're not happy with the interest rate on your savings account, compare your options for a better rate.
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