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NAB the latest bank to cut savings account rates

NAB the latest bank to cut savings account rates

Liz Seatter

22 Oct, 2021 - 3 min read

Australia’s third largest bank, NAB, has today cut savings rates by 0.05 per cent.

This is the third time NAB has cut savings rates this year, despite no move from the RBA since November 2020.

It follows similar cuts to savings rates from CBA (20 October), ANZ (8 October) and Westpac (17 September).

Reward Saver

	Old rate	New rate	Change
Max rate	0.30%	0.25%	-0.05%
Base rate (if monthly conditions aren’t met)	0.01%	0.01%	0.00%

Note: make at least one deposit and no withdrawals in a month for max rate.

iSaver

Old rate	New rate	Change
0.35% for 4 months then 0.05%	0.30% for 4 months then 0.05%	-0.05%

RateCity.com.au analysis shows:

42 banks have cut at least one savings rate in the last two months including CBA, Westpac, ANZ and now NAB.
0.30% is the average ongoing savings rate for adults.
1.35% is the highest ongoing rate for all adults.
12 banks still have an ongoing savings rate of 1 per cent or more.

RateCity.com.au research director, Sally Tindall, said: “These cuts from NAB were entirely expected.”

“In the last month, all four big banks have now trimmed savings rates to relieve pressure on their profit margins,” she said.

“The fact they’re moving in unison is little comfort for their customers, who will be rightly miffed as to why their savings rates keep falling.

“Savers would do well to shop around. Banks such as ING and Virgin Money are still offering ongoing interest rates that are four or more times higher,” she said.

Big four bank: conditional savings rates

Bank	Account	Max rate
CBA	GoalSaver	0.25%
Westpac	Life	0.30%
NAB	Reward Saver	0.25%
ANZ	Progress Saver	0.25%

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

Big four banks standard savers

Bank	Product	Intro rate (3-5 mths)	Ongoing rate
CBA	NetBank Saver	0.29%	0.05%
Westpac	eSaver	0.30%	0.05%
NAB	iSaver	0.30%	0.05%
ANZ	Online Saver	0.20%	0.05%

Source: RateCity.com.au Intro rate terms - CBA & Westpac 5 months, NAB 4 months, ANZ 3 months.

Highest ongoing savings accounts (no age restrictions)

Bank	Max rate
ING	1.35%
Virgin Money	1.50% for 3 mths then 1.20%
86 400	1.20%

Source: RateCity.com.au $25k balance. Conditions apply for max interest rate.

Young Adults: highest ongoing savings rates

Bank	Account	Max rate
Westpac Life	Ages 18 to 29 (up to $30K)	2.50%
BOQ Fast Track Starter	Ages 14 to 24 (up to $10K)	2.50%

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

Disclaimer

This article is over two years old, last updated on October 22, 2021. 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 savings accounts articles.

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Product database updated 16 Jan, 2025

This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.

Liz Seatter

Senior Finance Writer

Previously a Senior Finance Writer with RateCity, Liz Seatter is an experienced journalist and producer with expertise across the wide media landscape. Her background has seen her covering finance, property, economics, current affairs, and world news since 2004, starting at Newstalk ZB radio in New Zealand, before migrating to Australia. For over a decade Liz has worked for some of Australia's biggest mastheads, including Sky News, Nine News, and heading up Nine’s weekend breakfast show, Today, before landing at RateCity.