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NAB the latest bank to cut savings account rates

NAB the latest bank to cut savings account rates

Australia’s third largest bank, NAB, has today cut savings rates by 0.05 per cent.

This is the third time NAB has cut savings rates this year, despite no move from the RBA since November 2020.

It follows similar cuts to savings rates from CBA (20 October), ANZ (8 October) and Westpac (17 September).

Reward Saver

Old rateNew rateChange
Max rate

0.30%

0.25%

-0.05%

Base rate

(if monthly conditions aren’t met)

0.01%

0.01%

0.00%

Note: make at least one deposit and no withdrawals in a month for max rate.

iSaver

Old rateNew rateChange

0.35% for 4 months then 0.05%

0.30% for 4 months then 0.05%

-0.05%

RateCity.com.au analysis shows:

  • 42 banks have cut at least one savings rate in the last two months including CBA, Westpac, ANZ and now NAB.
  • 0.30% is the average ongoing savings rate for adults.
  • 1.35% is the highest ongoing rate for all adults.
  • 12 banks still have an ongoing savings rate of 1 per cent or more.

RateCity.com.au research director, Sally Tindall, said: “These cuts from NAB were entirely expected.”

“In the last month, all four big banks have now trimmed savings rates to relieve pressure on their profit margins,” she said.

“The fact they’re moving in unison is little comfort for their customers, who will be rightly miffed as to why their savings rates keep falling.

“Savers would do well to shop around. Banks such as ING and Virgin Money are still offering ongoing interest rates that are four or more times higher,” she said.

Big four bank: conditional savings rates

BankAccountMax rate
CBAGoalSaver

0.25%

WestpacLife

0.30%

NABReward Saver

0.25%

ANZProgress Saver

0.25%

Source: RateCity.com.au. Conditions apply for max rate.

Big four banks standard savers

BankProductIntro rate (3-5 mths)Ongoing rate
CBANetBank Saver

0.29% 

 0.05%

WestpaceSaver

0.30%

0.05%

NABiSaver

0.30%

0.05%

ANZOnline Saver

0.20%

0.05%

Source: RateCity.com.au Intro rate terms - CBA & Westpac 5 months, NAB 4 months, ANZ 3 months.

Highest ongoing savings accounts (no age restrictions)

BankMax rate
ING

1.35%

Virgin Money

1.50% for 3 mths then 1.20%

86 400

1.20%

Source: RateCity.com.au $25k balance. Conditions apply for max interest rate.

Young Adults: highest ongoing savings rates

BankAccountMax rate
Westpac LifeAges 18 to 29 (up to $30K)

2.50%

BOQ Fast Track StarterAges 14 to 24 (up to $10K)

2.50%

Source: RateCity.com.au Conditions apply for max interest rate.

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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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