Banks do the dodgy on loyal customers – cuts to hit older Aussies
If you thought your loyalty to your bank would pay off with bumper interest rates, think again. Over the Christmas period, the Big Four banks offered the gift of interest rate rises to new customers while cutting those of its long-term savings account holders.
Loyal ANZ customers are now receiving a measly 0.5 per cent interest on their savings, while the CommBank, NAB and Westpac customers aren’t faring much better, earning just 0.8 per cent.
Although the cuts aren’t massive (nor surprising, given the record-low cash rate) they’re likely to have the most negative effect on older Australians who rely on the interest earned from their savings accounts.
The banks, which say the cuts are a necessary response to “credit growth expectations and competitive pressures”, are urging their customers to put their savings into term deposits instead.
Otherwise, you can open a new savings account (with the same or different bank) and take advantage of the introductory rate, then move your money to another when the rate expires.
How long have you been with your bank? Are you happy with the interest rate you're getting?