Ahead of the Reserve Bank's cash rate decision next month, ANZ has preemptively cut the interest rate on its popular Online Saver account. 

The base rate has been lowered from 0.10% p.a. to just 0.05% p.a. - the worst of the big four - taking the total rate on the account (including the 3-month introductory bonus rate of 1.5% p.a.) down to 1.55% p.a.

This means that after three months of holding the account, ANZ savers would only earn 0.05% p.a. which is the worst ongoing savings account rate of any of the big four. 

An ANZ spokesperson told Savings.com.au their rates remain "competitive".

“We regularly review our rates and look to balance the needs of our customers whenever we make any changes, while remaining competitive.”

Compare that with some of the interest rates being offered by neobanks like Xinja, who currently offer the highest non-introductory savings account interest rate on the market at 2.25% p.a. for their newly launched 'Stash' product.

Xinja has already attracted more than $30 million flowing into its Stash savings account, despite only launching one week ago. 

Xinja Bank founder and CEO Eric Wilson described it as a "ripper response" and said the feedback from customers showed how much support there is for a new way of banking.

"We're committed to the long game of staying lean and reducing costs and overheads to do the best by our customers," Mr Wilson said.

"Having happy customers will go a long way to helping us break the high-cost, high profit model of Australian banking."

The move from ANZ follows in the footsteps of NAB, who just last week cut their savings account interest rates on its popular iSaver and Reward Saver accounts. 

The out of cycle savings account rate cuts could suggest the banks are getting ready for a potential cash rate cut by the RBA when they meet for the first time this year in February.

Currently, the markets are tipping the chance of an interest rate cut at almost 60%, with many economists believing the cash rate could fall as low as 0.25% by the year's end. 

The chances of a cash rate cut next month hinge on the unemployment figures, to be released later today.

ANZ has also today cut home loan rates on its Simplicity Plus (loan-to-value ratio of at least 80%) product from 3.24% p.a. to 3.12% p.a.

The bank also reduced its Simplicity Plus home loan for borrowers with an LVR of over 80% from 3.58% p.a. to 3.38% p.a. 

Many of ANZ's term deposit rates have also today been slashed by up to 10 basis points. Its best term deposit rate is currently 1.15% p.a. for a standard five-year term deposit.