NAB becomes the third big bank to cut savings rates out-of-cycle

NAB has today cut two of its popular savings accounts by 0.15 per cent, despite no move from the RBA since November.

Analysis from RateCity.com.au shows 23 banks have cut savings rates already in 2021, including CBA and Westpac last Friday and NAB today.

These three banks and their subsidiaries hold 61.5 per cent of household deposits, according to the latest APRA statistics released today (see tables below for full details).

NAB Reward Saver cuts

Make at least 1 deposit on or before the second last day of the month and no withdrawals per mth for max rate.

NAB iSaver cuts

RateCity.com.au savings database analysis:

• 23 banks have cut at least one savings rate since January 1 this year.
• The average ongoing savings rates is now 0.38%.
• 1.35% is the highest ongoing savings rate for all Australians.
• A year ago, the highest ongoing savings rate was 2.25% (0.90% change).
• Currently 15 banks are offering ongoing savings rates of 1% or higher (excluding pensioner and youth accounts).

RateCity.com.au research director, Sally Tindall, said: “NAB’s decision to cut savings rates out-of-cycle comes as no surprise. It follows similar moves from rivals CBA and Westpac last week as the low rate environment continues to pressure profit margins.

“A distinct lack of competition in the market is allowing banks to quietly chip away at their rates without too much blowback,” she said.

“Despite record low rates, we’ve never had more money in the bank. The problem is the banks don’t particularly want it.

“Right now, around 60 per cent of Australians have their money with CBA, Westpac and NAB and their subsidiaries, even though some of these savers are getting rates as low as 0.05 per cent.

“NAB customers would do well to shop around, as there are 15 banks offering ongoing rates of 1 per cent or higher," she said.

Latest deposit statistics from APRA – released today

Source: Deposit data fromAPRA monthly banking stats released 29 Jan, 2021.

Big four banks: Market share of household deposits

Source: APRA Monthly Banking Statistics, December 2020, released 29 January 2021 Note: the totals above include banks' subsidiaries.

Highest ongoing savings accounts on RateCity.com.au

(excludes accounts specifically for younger Australians)

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

Big four banks conditional savings rates

Source: RateCity.com.au. Note rates are for balances over $50K.

Big four banks standard savings rates

Compare savings accounts