NAB announces rate hikes

NAB has this afternoon announced it is passing on Tuesday’s cash rate hike to variable borrowers in full, effective 17 November.

NAB is the first of the big four banks to announce hikes following the RBA’s November meeting. The only other bank on RateCity.com.au’s database to announce its November rate changes so far is ME Bank, but only for home loan customers.

NAB is also passing on the 0.25 percentage point hike to its Reward Saver account, but has not announced any changes to its iSaver account.

NAB’s lowest advertised variable rates for owner-occupiers – effective 17 November

Source: RateCity.com.au. Rates are for owner-occupiers playing principal and interest. LVR requirements apply.

NAB’s savings changes – effective 17 November

Source: RateCity.com.au. Note: conditions and balance caps apply for maximum rate on select accounts

RateCity.com.au research director, Sally Tindall, said: “NAB’s variable home loan customers will be disappointed, but not surprised, to see the bank pass on the cash rate hike in full.”

“Banks big and small have been passing on the full rate hikes to variable home loan customers since the start of the increases, and we expect this will continue with rate hike number 13,” she said.

“If you want to dodge a rate hike, you’ll need to pick up the phone and ask. Banks are still handing out discounts, but only to those with the initiative to call.

“It is great to see NAB pass on the full hike to its Reward Saver customers. As a result, these savers can now earn an ongoing rate of 5.00 per cent if they meet the banks monthly terms and conditions.

“However, it’s disappointing to see iSaver customers once again miss out.

“These customers will be continuing on a rate of just 2.00 per cent, which is laughable considering the cash rate is more than double this.

“Let’s hope the other big three banks take a different approach and announce full increases to each and every one of their savings accounts,” she said.

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