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NAB, Westpac announce RBA hikes
NAB and Westpac are the first big four banks to announce they will pass on Tuesday’s 0.25 percentage point RBA hike to both mortgage and savings customers.
These increases will take effect on 17 March for NAB customers and Westpac savers, while Westpac home loan rates will increase the following Tuesday, 21 March.
Westpac variable rates for owner-occupiers – effective 21 March
| Old rate | New rate | Increase in repayments, $500K | |
| Lowest variable | 4.89% for 2 yrs then 5.29% | 5.14% for 2 yrs then 5.54% | $73 |
| Discounted variable | 6.44% | 6.69% | $78 |
| Standard variable rate | 7.73% | 7.98% | $82 |
Source: RateCity.com.au. Repayments are for an owner-occupier paying principal and interest with a $500,000 loan over 25 years.
NAB new customer variable rates for owner-occupiers – effective 17 March
| Old rate | New rate | Increase on $500K | |
| Basic variable | 5.24% | 5.49% | $74 |
| Discounted variable | 6.92% | 7.17% | $80 |
| Standard variable | 7.77% | 8.02% | $82 |
Source: RateCity.com.au. Repayments are for an owner-occupier paying principal and interest with a $500,000 debt and 25 years remaining. New rates effective 17 March 2023.
What are the big banks doing for savers?
Westpac has announced it will increase the rates on three of its savings accounts by 0.25 percentage points for its Life and eSaver accounts for new and existing customers, and by 0.35 percentage points on its Spend&Save account for young adults.
At this stage, its kids’ saver, Bump, remains unchanged.
NAB is passing on the 0.25 percentage point increase to its Reward Saver account and its iSaver accounts for new and existing customers.
Westpac savings changes – effective 17 March
| Old max rate | New max rate | Change | |
| Life | 4.00% | 4.25% | +0.25% |
| eSaver | 4.00% for 5mths then 0.85% | 4.25% for 5mths then 1.10% | +0.25% on both intro and ongoing rates |
| Spend&Save (ages 18-29) | 4.35% | 4.70% | +0.35% |
| Bump (ages under 18) | 4.00% | 4.00% | No change |
Source: RateCity.com.au. Note: conditions and balance caps apply for maximum rate on select accounts.
NAB savings rate changes – effective 17 March
| Old max rate | New max rate | Change % points | |
| Reward Saver | 4.00% | 4.25% | +0.25 |
| iSaver | 4.00% for 4 mths, then 1.35% | 4.25% for 4 mths, then 1.60% | +0.25% on both intro and ongoing rates |
Source: RateCity.com.au. Note: conditions and balance caps apply for maximum rate on select accounts.
RateCity.com.au research director, Sally Tindall, said: “It’s great to see Westpac and NAB pass on the full hike to each of their key savings accounts.”
“Westpac has gone one step further on its Spend&Save account, plating up a 0.35 percentage point boost for customers aged 18 to 29,” she said.
“As a result, both banks will soon offer ongoing rates of at least 4.25 per cent on their bonus saver accounts.
“While these kinds of rates aren’t even within cooee of inflation, considering where they were just 10 months ago, this isn’t a bad result at all.
“Westpac and NAB have pulled their socks up when it comes to passing on rate hikes to savers this month, however, across the 10 hikes, the banks haven’t opened up their wallets equally.
“When this latest hike takes effect, Westpac will have increased its bonus saver by a total of 4 percentage points since last May – 0.50 percentage points more than the RBA – yet existing eSaver customers will have only seen an increase of just 1.05 percentage points.
“If you’ve got your hard-earned money sitting in a savings account, don’t just assume your rate has risen in line with the RBA hikes.
“Check your account and if it’s earning less than 4 per cent, it’s probably time to take action,” she said.
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Product database updated 19 Nov, 2024
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