ANZ lifts interest rate on its Progress Saver Account to 2.40% p.a.

Alison Banney 29 October 2018 NEWS

The ANZ Progress Saver maximum interest rate has jumped a huge 69 basis points, from 1.71% p.a. to a competitive 2.40% p.a.

Some exciting news for anyone with an ANZ Progress Saver account; ANZ has today increased the interest rate on the account from 1.71% p.a. to 2.40% p.a. This is a jump of 69 basis points, and one of the biggest interest rate increases in a single move we've seen all year.

The ANZ Progress Saver previously offered a base rate of 0.01% p.a. and a bonus rate of 1.70% p.a. In the rate change today, the base rate has remained the same at 0.01% p.a. but the bonus rate has jumped to 2.39% p.a., which means the account now offers a maximum rate of 2.40% p.a. if the account conditions are met.

The account conditions to earn the bonus rate have not changed. To be eligible for the bonus rate account holders must make a single deposit of $10 or more each month and make no withdrawals from the account. If you fail to deposit $10 or more one month, or if you make a withdrawal from the account, you'll only earn the base interest rate of 0.01% p.a. for that month (which, unless you have an incredibly large balance, is practically nothing).

The $10 monthly deposit requirement is tiny compared to other high interest savings accounts in the market. ING's popular Savings Maximiser account for example requires customers to deposit at least $1000 each month to earn the bonus rate of up to 2.80% p.a. Although with ING, you're able to withdraw from the account as much as you need and still earn the bonus interest, compared to ANZ's Progress Saver which doesn't allow for any withdrawals.

The ME Online Savings account is another popular savings account, with a super-competitive maximum interest rate of 2.85% p.a. and no monthly deposit requirements at all. However, you do need to link the account to a ME Everyday Transaction account and make at least one tap-and-go purchase each week. ME's conditions are really easy to meet, but in a way they could actually be encouraging spending rather than saving, which might not be what you need if you're already an impulse shopper.

Because you can't make any withdrawals from the ANZ Progress Saver to be eligible for the attractive interest rate of 2.40% p.a., this is very much an account for serious savers who are confident they won't need to dip into their balance. The withdrawal restrictions do create a great incentive to save, if that's what you're looking for.

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