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NAB hikes variable mortgages and main savings accounts

NAB hikes variable mortgages and main savings accounts

Australia’s third largest lender, NAB, has announced it is passing on the full RBA hike to variable mortgages and its main savings accounts.

ING has also just announced it will be passing on the full hike to its variable home loan and Savings Maximiser customers. This takes ING’s popular savings account to a maximum rate of 3.10 per cent – the new highest ongoing savings rate for all adults.

NAB home loan hikes

From 12 August, NAB variable home loan rates for new and existing customers will go up by 0.50 percentage points. As a result, NAB’s lowest variable rate will rise to almost 4 per cent (3.94%). The last time NAB’s lowest variable rate was this high was in March 2019.

Unlike CBA and Westpac, NAB has not announced a cut to its lowest 4-year fixed rate.

NAB variable rates for owner-occupiers – effective 12 August

Old rateNew rateIncrease in repayments, $500K
Standard variable5.77%6.27%$153
Discounted variable4.92%5.42%$147
Lowest variable3.44%3.94%$135

Source: RateCity.com.au. Repayments are for an owner-occupier paying principal and interest with a $500,000 loan over 25 years. New rates effective 12 August 2022.

What is NAB doing for savers?

NAB has passed on the full 0.50 percentage point hike to its two main savings accounts: Reward Saver and iSaver.

NAB savings changes – effective 12 August

Old max rateNew max rateChange
Reward Saver1.25%1.75%+0.50%
iSaver1.30% for 4 mths then 0.35%1.80% for 4 mths then 0.85%+0.50%

Source: RateCity.com.au. Note: conditions and balance caps apply for maximum rate on select accounts. New rate effective 12 August 2022.

Big four banks: state of play

Home loan rates, post August RBA hike

Owner-occupiers paying principal and interest

Lowest variableDiscounted variableStandard variableLowest 4-year fixed
CBA

3.79%

5.60%

6.30%

4.99%

Westpac

3.64% for 2yrs then 4.04%

4.94%

6.23%

4.99%

NAB

3.94%

5.42%

6.27%

6.59%

ANZ

3.69%

4.74%

6.14%

5.99%

Source: RateCity.com.au. Note some loan-to-value ratios apply.

Savings rates, post August RBA hike

Bonus savers (max)Online saversHighest term deposit
CBA1.25%1.80% for 5 mths then 0.85%

3.00% for 18 mths

Westpac1.85%1.80% for 5 mths then 0.85%

3.00% for 12-23 mths

NAB1.75%1.80% for 4 mths then 0.85%

3.00% for 12 mths

ANZ1.15%1.05% for 3 mths then 0.30%

3.00% for 11 mths

Source: RateCity.com.au. Note: some conditions apply for maximum rates.

RateCity.com.au research director, Sally Tindall, said: “NAB has stepped up to the plate and passed on full hikes to its two main savings accounts.”

“This is fantastic news for these customers who have been earning next to nothing on their savings for years,” she said.

“ING has also announced it’s passing on the full hike to its Savings Maximiser account, taking this rate to a total of 3.10 per cent. When it comes into effect next Tuesday, it will be the highest ongoing savings rate for all adults.

“We’ve finally broken the 3 per cent barrier, which will be a great feeling for thousands of keen savers who diligently shop around for the best rates.

“CBA and ANZ need to take their official announcements back to the boardroom and start thinking about what they can do to help all of their savings customers.

“Even after these hikes filter through, many savings customers will still be on rates that are well below the cash rate.

“If your bank isn’t offering an ongoing savings rate of at least 2 per cent, then take your nest egg shopping for one that does,” she said.

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This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.

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