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Dropping like flies: NAB joins growing list of banks cutting savings rates
Australia’s third largest bank, NAB, has today cut rates on a range of savings, retirement and term deposit accounts.
NAB is the 30th bank to drop savings rates following the November 3 RBA rate cut. It’s also the third big four bank to cut savings rates in the space of a week, according to the RateCity.com.au database.
NAB Reward Saver
| Before | Today | Difference | |
| Max rate | 0.70% | 0.55% | -0.15% |
| Base rate | 0.05% | 0.05% | 0% |
At least one deposit and no withdrawals per mth for max rate.
NAB iSaver
| Before | Today | Difference | |
| Intro Rate (4 mths) | 0.75% | 0.60% | -0.15% |
| Ongoing rate | 0.05% | 0.05% | 0% |
NAB Reward Saver – change in interest earned, 1 January 2020 to today
Someone with $50,000 in a NAB Reward Saver account was getting a max rate of 1.61 per cent at the start of the year, earning approximately $67 a month in interest. Today someone with the same balance would get a max rate of just 0.55 per cent and earn approximately $23 a month.
| Max rate | Monthly interest on $50K | Monthly interest on $100K | |
| 1 Jan 2020 | 1.61% | $67 | $134 |
| Today | 0.55% | $23 | $46 |
| Difference | 1.06% | $44 | $88 |
Note: assumes mthly conditions are met for max rate. Interest is calculated on an average mth.
RateCity.com.au research director, Sally Tindall, said: “Savings rates are dropping like flies. Thirty lenders have already cut rates with plenty more banks set to follow.”
“The big question now is how long will Westpac hold out, and will they cut their market-leading savings rate for young Australians?” she said.
“Westpac is currently offering 3 per cent for people aged between 18 and 29, although in the current climate, a rate like this has got to have a target on its back.
“Savers have to be on their toes if they want to keep their interest rate competitive. This typically means jumping through hoops to qualify for bonus interest each month, or bouncing from bank to bank chasing introductory rates,” she said.
Big four banks conditional savings rates
| Bank | Account | Max rate (if conditions met) |
| CBA | GoalSaver | 0.45% |
| Westpac | Life | 0.75% |
| NAB | Reward Saver | 0.55% |
| ANZ | Progress Saver | 0.50% |
Source: RateCity.com.au. Note rates are for balances under $50K.
Big four bank: standard savings rates
| Bank | Account | Intro rate | Ongoing rate |
| CBA | NetBank Saver (5 mths) | 0.60% | 0.05% |
| Westpac | eSaver (5 mths) | 0.75% | 0.05% |
| NAB | iSaver (4 mths) | 0.60% | 0.05% |
| ANZ | Online Saver (3 mths) | 0.45% | 0.05% |
Source: RateCity.com.au
Highest ongoing savings rates (excludes accounts specifically for younger Australians)
| Bank | Max rate | Conditions |
| MyState | 1.50% | Deposit $20+ and make 5 trans per mth |
| ING | 1.35% | Deposit $1,000+ and 5 card purchases per mth |
| UBank | 1.31% | Deposit $200+ per mth |
Source: RateCity.com.au
Disclaimer
This article is over two years old, last updated on November 20, 2020. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent savings accounts articles.
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Product database updated 23 Apr, 2024
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