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- NAB hikes variable mortgages and one savings account by 0.25%
NAB hikes variable mortgages and one savings account by 0.25%
NAB is the last of the big four banks to announce it’s passing on the RBA rate hikes in full to variable rate mortgage customers, effective 12 May.
NAB variable rates for owner-occupiers
Calculations are based on a $500,000, 25-year loan.
| Old rate | New rate | Increase in repayments, $500K | |
| Standard variable | 4.52% | 4.77% | $72 |
| Discounted variable | 3.67% | 3.92% | $68 |
| Lowest variable | 2.19% | 2.44% | $62 |
Source: RateCity.com.au. Repayments are for an owner-occupier paying principal and interest with a $500,000 loan over 25 years. Rates effective 13 May.
Big four bank responses to RBA 0.25% hike
| Variable mortgage hikes | New lowest variable rate | Savings hikes | Effective date | |
| CBA | 0.25% | 2.44% | TBC | 20 May |
| Westpac | 0.25% | 2.34% | Up to 0.25% | 17 May |
| NAB | 0.25% | 2.44% | Up to 0.25% | 13 May |
| ANZ | 0.25% | 2.44% | TBC | 13 May |
Source: RateCity.com.au. Lowest rates are for owner-occupiers paying principal and interest. LVR requirements apply.
NAB increases one savings rate by 0.25%
NAB has also announced it will pass on the full hike to its 1.3 million customers with a Reward Saver account. The rates on its other savings accounts remain unchanged.
| Max current rate | Max new rate | |
| NAB Reward Saver | 0.25% | 0.50% |
| NAB iSaver | 0.30% for 4 months then 0.05% | No change |
| NAB Retirement Account | 0.01% - 0.25% | No change |
Source: RateCity.com.au. Conditions apply for max rate.
RateCity.com.au research director, Sally Tindall, said: “NAB has followed the pack and hiked its variable mortgage rates by the full 0.25 per cent.”
“As expected, the big four banks have moved in unison and passed on the RBA hike in full to their millions of variable home loan customers,” she said.
“Australians with a home loan should now brace for more pain, as this is only the beginning of a series of hikes ahead.
“So far, just Westpac and NAB have increased deposit rates, but not across the board, with only select accounts increasing by 0.25 percentage points.
“NAB and Westpac, like other banks, are bursting at the seams with cash. As a result, the banks are unwilling to pass on the hike to all savings customers.”
The latest APRA statistics for March show Australian households have a total of $1.26 trillion in the bank – an increase of over $272 billion since COVID.
“CBA and ANZ now have the chance to step up to the plate and pass on a rate hike to all of their savings customers, who’ve been on pitiful rates for far too long.
“Serious savers should find out what their bank intends to do. If your savings rate isn’t going up, shop around and see if you can get a better deal elsewhere,” she said.
Big four bank: current conditional savings rates
| Bank | Account | Max rate |
| CBA | GoalSaver | 0.25% |
| Westpac | Life | 0.50%* |
| NAB | Reward Saver | 0.50%* |
| ANZ | Progress Saver | 0.15% |
Source: RateCity.com.au. Conditions apply for max rate. Westpac rate effective May 17. NAB rate effective May 13.
Household deposits in banks: APRA
| Feb-2020 (pre-COVID) | Now (March 2022) | Change since COVID-19 | |
| Deposits by household | $989.2 billion | $1.26 trillion - record high | $272.4 billion 28% |
Source: RateCity.com.au. Deposits data released by APRA, 29 April 2022.
Find out who has moved at RateCity.com.au’s RBA rate tracker
Disclaimer
This article is over two years old, last updated on May 4, 2022. 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 home loans articles.
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