NAB has passed on the full Reserve Bank cash rate cut of 0.15 percentage points to introductory and bonus rates on its savings accounts. The new rates, at the time of writing, are:
- 0.55% – Reward Saver (0.05% base rate + 0.50% bonus rate when you meet certain conditions each month)
- 0.60% – iSaver Account (0.05% base rate + 0.55% introductory rate for the first four months)
The bank also reduced some retirement account rates and revealed cuts of between 0.03 and 0.20 percentage points to its term deposit rates.
NAB’s iSaver Account’s rate started the year at 1.70% (0.11% base rate + 0.59% introductory rate) and has since fallen by a total of 1.10 percentage points after seven rounds of cuts.
NAB joins two of its main rivals, Commonwealth Bank and ANZ, which both made cuts of up to 0.20 percentage points to their savings accounts since the Reserve Bank of Australia (RBA) cut the cash rate to the historic low of 0.10% on 3 November.
Savings rates from those three major banks are now sitting at or below 0.60%, while Westpac is yet to join the latest round of cuts, with its savings rates at 0.75%.
It’s not just the majors moving, though, with digital bank 86 400 having slashed its Save rate by 0.15 percentage points on 20 November, down to 1.20%. ING, Volt Bank and UBank are also among the 21 providers Canstar has seen reduce savings rates since the latest cash rate call.
Canstar finance expert Steve Mickenbecker said 2021 would probably start with most Australians’ savings at the big banks earning a “meagre” 0.45% to 0.60%, and that he thought these rates were unlikely to rise by much for at least three years.
The RBA has indicated it won’t be raising the cash rate during that period, and its movements are typically a signal to interest rate setting at banks for consumer interest rates like savings accounts.
“Any saver with a long-term horizon must be looking for alternative options for at least part of their savings if they are going to make them last,” Mr Mickenbecker said.
“While the cash rate might not fall below 0.10%, the RBA’s quantitative easing measures may encourage savings rates down even further, making it imperative that savers get the best deals around while they can.”
Where to find the highest savings account interest rates
Top 3 regular savings account rates on Canstar’s database
|Company||Account||Base Rate||Promo Rate||Promo Period||Total Rate|
|Rabobank Australia||High Interest Savings Account||0.30%||1.45%||4 months||1.75%|
|Bank of China||Online Saver||0.40%||1.00%||4 months||1.40%|
|Macquarie Bank||Savings Account||1.20%||0.15%||4 months||1.35%|
Source: www.canstar.com.au – 20/11/2020. Based on a deposit of $10,000. Top rates selected, and table sorted, in descending order by total rate. Total rate includes the base rate plus any promotional bonus rate. Flexible accounts (regular savings accounts) include those accounts with no conditional bonus rate. Excludes products that are only available to people of a certain age. Conditions may apply to bonus and promotional rates; contact the relevant company for full terms and conditions.
Top 3 bonus savings account rates on Canstar’s database
|Company||Account||Base Rate||Bonus Rate||Bonus Conditions||Total Rate|
|MyState Bank||Bonus Saver||0.15%||1.35%||Deposit $20 and make 5 settled VISA Debit card transaction each month||1.50%|
|ING||Savings Maximiser||0.05%||1.30%||Deposit $1,000 and make 5 settled card purchases each month||1.35%|
|UBank||USave Savings Bonus||0.25%||1.06%||Link a USpend account & deposit $200 each month||1.31%|
Source: www.canstar.com.au – 20/11/2020. Based on a deposit of $10,000. Top rates selected, and table sorted, in descending order by total rate. Total rate includes the base rate plus any conditional bonus rate. Bonus accounts include those accounts where a bonus rate is payable when certain conditions are met. Excludes products that are only available to people of a certain age. Conditions may apply to bonus and promotional rates; contact the relevant company for full terms and conditions.
The comparison table below shows some of the Savings Accounts on Canstar’s database for a regular saver in NSW with links to the providers’ websites. The results shown are based on an investment of $100,000 in a personal savings account and are sorted by Star Rating (highest to lowest), then provider name (alphabetically). For more information and to confirm whether a particular product will be suitable for you, check upfront with your provider and read the Product Disclosure Statement before making a decision.