Analyst describes interest return as measly

0.1 per cent to 0.05 per cent — a fall of 0.05 per cent.

NAB dropped the rate on its iSaver and Reward Saver accounts by between 0.11 to 0.15 percentage points last week.

The big four bank’s ongoing standard savings account rates is now between 0.05 per cent and 0.11 per cent.

ANZ also reduced its home loan rate on its Simplicity Plus (loan-to-value ratio 80 per cent or less) product from 3.24 per cent to 3.12 per cent — a fall of 0.12 per cent.

The bank has also cut its ANZ Simplicity Plus Home Loan (LVR over 80 per cent) from 3.58 per cent to 3.38 per cent — a reduction of 0.2 per cent.

These reductions are for new customers.

It now has the second lowest ongoing variable rate of the big four banks behind NAB’s base variable rate product at 3.09 per cent.

Westpac’s Flexi First Option rate is 3.18 per cent, while the Commonwealth Bank’s Extra Home Loan rate is 3.22 per cent.

Financial comparison website RateCity’s spokeswoman Sally Tindall said the ANZ savings cut would leave customers worse off.

“ANZ customers with an online saver account will now be getting a measly 0.05 per cent interest after the threemonth honeymoon rate expires,” Ms Tindall said.

“A person with one of these accounts would earn around $5 in the year after the bonus rate expires on a balance of $10,000. That’s barely a couple of loaves of bread.”

She said several banks had cut some of their term deposits in the past week, “which suggests they are getting their house in order ahead of a potential cash rate cut”.

An ANZ spokesman said: