NAB and ANZ take the knife to savings rates post RBA cut

NAB and ANZ take the knife to savings rates post RBA cut

Australia’s 3rd and 4th largest banks, NAB and ANZ, have today dropped interest rates on savings accounts on the back of this month’s cut to the cash rate.


NAB iSaver

  Before Now Difference
Intro Rate (4 mths) 1.55% 1.30% 0.25%
Ongoing rate 0.11% 0.05% 0.06%

NAB reward saver

  Before Now Difference
Max Rate 1.50% 1.25% 0.25%
Base rate 0.11% 0.05% 0.06%

Conditions for max rate: make one deposit and no withdrawals per month.


ANZ online saver

  Before Now Difference
Intro Rate (3 mths) 1.55% 1.20% 0.35%
Ongoing rate 0.05% 0.05% 0.00%

ANZ progress saver

  Before Now Difference
Max Rate 1.60% 1.25% 0.35%
Base rate 0.01% 0.01% 0.00%

Conditions for max rate: make one deposit of at least $10 and no withdrawals per month.

ANZ progress saver for kids

  Before Now Difference
Max Rate 1.60% 1.25% 0.35%
Base rate 0.01% 0.01% 0.00%

Conditions for max rate: make one deposit of at least $10 and no withdrawals per month.

These changes come on the back of cuts to savings rates by both banks in January of this year:

NAB January cuts

iSaver: 0.15% off the introductory rate

Reward saver: 0.11% off the bonus rate

ANZ January cuts

Online saver: 0.05% off the ongoing rate research director Sally Tindall said: “Once again regular savers are being hit the hardest with up to 0.35 per cent shaved off their bonus rates, in the case of ANZ.

“This is a double whammy for many NAB and ANZ savings customers who already had their rates cut less than two months ago.

“Now three of the four big banks are offering an ongoing rate of just 0.05 per cent on their standard savings accounts. It’s really only a matter of time before Westpac follows suit with cuts to their savings rates.

“It’s disappointing to see CBA, and now ANZ, have both slashed the bonus rates on their kids accounts.

“Hopefully this will prompt some schools to reconsider their school banking offering and teach kids the value in finding a competitive rate,” she said.

Big four bank standard savings accounts – as of 13 March

Bank Product Intro rate Ongoing rate Intro term
CBA NetBank Saver 1.30% 0.05% 5 mths
Westpac eSaver 1.55% 0.10% 5 mths
NAB iSaver 1.30% 0.05% 4 mths
ANZ Online Saver 1.20% 0.05% 3 mths

Big four bank conditional savings accounts – as of 13 March

Bank Product Base Rate Max Rate Conditions
CBA Goal Saver 0.01% 0.65% Mthly deposit of $200, no withdraw
Westpac Life 0.45% 1.55% Mthly deposit, account bal must have increased
NAB Reward Saver 0.05% 1.25% Mthly deposit, no withdraw
ANZ Progress Saver 0.01% 1.25% Deposit $10 a mth, no withdrawal

Notes: Rates based on balances less than $50,000. CBA offers higher rates for larger deposits. Westpac still to adjust rates post RBA cut.

Highest ongoing savings rates on

Bank Max rate Conditions
86 400 2.25% Deposit $1K /mth into linked transaction account
Up 2.25% 5 or more transactions on linked account
Bank of Queensland 2.00% Deposit $1K into linked accounts and make 5+ transactions

Notes: excludes kids’ savers and introductory rates.

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Learn more about savings accounts

What is the interest rate on savings accounts?

As banks frequently change their rates, the most accurate way to look at interest rates on savings accounts is to use a savings accounts comparison tool. When you look at the savings rate check what the maximum and minimum rates are. Often banks will offer you a promotional rate for the first few months which is competitive, but then revert back to a base rate which can sometimes be less than inflation. Ongoing bonus rates are often a safer bet as they will keep rewarding you with the maximum rate, provided you meet their criteria

Can you set up a savings account online?

Yes. Several large and small banks offer online applications for savings accounts, and there are also online-only financial institutions to consider.

Online-only savings accounts are often less expensive than other savings accounts, though they may not offer the same flexibility, features, or face-to-face service as more traditional savings accounts.

Who has the highest interest rates for savings accounts?

As banks frequently change their rates, the most accurate way to know who currently has the highest interest rate is to use a savings account comparison tool.

What is a good interest rate for a savings account?

A good rule of thumb to keep in mind with savings accounts is to look for a rate that is higher than the CPI inflation rate. This number is constantly changing, so check the Reserve Bank of Australia’s page. If you aren’t earning interest above this then the value of your money will go backwards over time.

How does interest work on savings accounts?

The type of interest savings accounts accrues is called compound interest. Compound interest is interest paid on the initial deposit amount, as well as the accumulated interest on money you have. This is different from simple interest where interest is paid at the end of a specified term. Compound interest allows you to earn interest on interest at a higher frequency. 

Example: John deposits $10,000 into a savings account with an interest rate of 5 per cent that he leaves untouched for 10 years. At the end of the first year he will have $10,512 in savings. After ten years, he will have saved $16,470.

How to make money with a savings account?

Savings accounts make you money by earning interest on your savings. The more money you deposit, the longer you leave it in the account, and the higher the account’s interest rate, the more interest you’ll be paid by the bank or financial institution, and the more your wealth will grow.

To make sure your savings account makes money and doesn’t lose money, it’s important to maintain a large enough minimum balance that the annual interest earned exceeds any annual fees charged on the account.

Can you have a joint savings account?

Yes. Joint savings accounts can be useful for two or more people wanting to combine their savings to meet shared financial goals, including spouses, flatmates and business partners.

Some joint savings accounts require all parties to sign before they can access the money. While less convenient, this extra security can help encourage all parties to meet their shared financial goals.

Other joint savings accounts allow any of the account holders to access the money. These accounts can be convenient for financially responsible couples that trust one another implicitly. 

How can I get a $4000 loan approved?

While personal loans and medium amount loans don’t offer guaranteed approval, there are steps you can take to help increase the likelihood of your application being approved, including:

  • Fulfilling the eligibility criteria (providing ID, proof of residency, proof of income etc.)
  • Checking your credit history (you can order one free copy of your credit file per year, and make sure that there aren’t any errors that may be bringing down your credit score)
  • Comparing carefully before applying (making multiple loan applications can mean having your credit checked multiple times, which can look bad to some lenders and reduce your chances of being approved by them)

How to open a savings account for my child?

Some banks and financial institutions allow parents to open a bank account for their child as soon as it is born, and start depositing funds to go towards the child’s future.

Children’s savings accounts generally don’t have fees, and are structured to help develop positive financial habits by limiting withdrawals, encouraging regular deposits, and earning interest on the savings, similarly to standard savings accounts.

Can you set up direct debits from a savings account?

It’s not usually possible to set up a direct debit from your savings account to cover ongoing expenses or bills, as savings accounts are structured around growing your wealth by earning interest on regular deposits, and discouraging withdrawals.

Some transaction accounts allow you to set up direct debits and also earn interest, though you may not enjoy as much flexibility as a dedicated transaction account, or get as high an interest rate as a dedicated savings account.

Can I overdraft my savings account?

A lot of savings accounts won’t let you overdraw. Some will allow this feature but you’ll need to apply first. It’s best to read the fine print and check with your lender whether this is a feature they offer. It can be a helpful addition, but as your lender can charge you a fee as well as interest for going into negative numbers, it’s best to avoid overdrafting when possible.

How do I open a savings account?

Opening a savings account is a relatively simple process. If you’ve found an account with a suitable interest rate, you’ll just need to get in contact with your chosen lender via a branch, phone call or hop online to begin the process. 

You may be required to provide:

  • Personal details, including identification (driver’s license, passport etc.)
  • Tax file number
  • Employment details

What is a savings account?

A savings account is a type of bank account in which you earn interest on the money you deposit. This makes it one of the easiest and safest investment tools.

Can you direct deposit to a savings account?

Yes. You can make one off payments or set up regular direct deposits into a savings account. This can be organised easily through online banking or by making deposits in a branch. Talk to your lender to find out the easiest way for you to set up direct deposits.