Australia’s third-largest bank, NAB, has today cut savings rates by 0.05%.
This is the third time the NAB has cut its savings rates this year, despite no movement from the RBA since November 2020.
It follows similar cuts in savings rates at CBA (October 20), ANZ (October 8) and Westpac (September 17).
Reward saver
| Old rate | New rate | Switch | |
| Maximum rate |
0.30% |
0.25% |
-0.05% |
| Basic rate
(if the monthly conditions are not met) |
0.01% |
0.01% |
0.00% |
Note: Make at least one deposit and no withdrawals per month for maximum rate.
iSaver
| Old rate | New rate | Switch |
|
0.35% for 4 months then 0.05% |
0.30% for 4 months then 0.05% |
-0.05% |
Analysis of RateCity.com.au shows:
- 42 banks have cut at least one savings rate in the past two months, including CBA, Westpac, ANZ and now NAB.
- 0.30% is the average permanent savings rate for adults.
- 1.35% is the highest current rate for all adults.
- 12 banks still have a permanent savings rate of 1% or more.
RateCity.com.au Research Director Sally Tindall said: “These NAB cuts were fully expected.”
“Over the past month, the Big Four banks have now cut their savings rates to ease the pressure on their profit margins,” she said.
“The fact that they are moving forward in unison is of little comfort to their clients, who will rightly be upset about why their savings rates continue to fall.
“Savers would do well to shop around. Banks such as ING and Virgin Money are still offering outstanding interest rates that are at least four times higher, ”she said.
The Big Four Banks: Conditional Savings Rates
| Bank | Account | Maximum rate |
| ABC | GoalSaver |
0.25% |
| Westpac | Life |
0.30% |
| NAB | Reward saver |
0.25% |
| ANZ | Progress saver |
0.25% |
Source: RateCity.com.au. Conditions apply for the max.
Standard savers of the big four banks
| Bank | Product | Introductory rate (3-5 months) | Current rate |
| ABC | NetBank Saver |
0.29% |
0.05% |
| Westpac | eSave |
0.30% |
0.05% |
| NAB | iSaver |
0.30% |
0.05% |
| ANZ | Online Saver |
0.20% |
0.05% |
Source: RateCity.com.au Introductory Rate Terms – CBA and Westpac 5 months, NAB 4 months, ANZ 3 months.
Highest open savings accounts (no age restriction)
| Bank | Maximum rate |
| ING |
1.35% |
| Virgin money |
1.50% for 3 months then 1.20% |
| 86,400 |
1.20% |
Source: RateCity.com.au Balance of $ 25,000. Conditions apply for the maximum interest rate.
Young adults: highest current savings rates
| Bank | Account | Maximum rate |
| Westpac life | 18 to 29 years old (up to $ 30,000) |
2.50% |
| BOQ quick starter | 14 to 24 years old (up to $ 10,000) |
2.50% |
Source: RateCity.com.au The conditions apply for the maximum interest rate.
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