The major bank made cuts of 0.10 percentage points to the introductory and bonus rates on its iSaver and Reward Saver accounts.
The new rates, effective Tuesday, 29 September, are:
- 0.85% – NAB iSaver (0.05% base rate + 0.80% introductory rate for the first four months)
- 0.80% – NAB Reward Saver (0.05% base rate + 0.75% bonus rate if you meet the bonus conditions)
NAB is the seventh provider on Canstar’s database to cut savings rates over the last week, with others including Bank of Queensland and ING.
Out of the four major banks, Commonwealth Bank now has the highest savings rate at 0.90%, while Westpac, NAB and ANZ’s highest rates are all sitting at 0.85%.
NAB still classifies both the iSaver and Reward Saver as “high interest” savings accounts, although there are rates as high as 2% available on Canstar’s database from non-major banks.
The average savings rate is now 0.63% on regular savings accounts (including those with introductory bonus rates) and 1% on bonus savings accounts where you’re required to meet certain conditions to earn bonus interest, according to Canstar’s database.
↓ Keep reading to see where to find the highest-interest savings accounts
Canstar finance expert Steve Mickenbecker said savers needed to get control of their accounts if they wanted to maximise their interest.
“Savers have to micromanage their money by qualifying for bonus rates or switching savings accounts every few months to earn introductory rates, unless they’re willing to settle for rates around 0.05%,” Mr Mickenbecker said.
“Even if it’s just to lift meagre interest rates to mediocre returns, savers today have to manage their money actively or make do with much more modest remuneration than they could be getting.
“With the Reserve Bank offering 0.25% loans to help banks raise money, the banks are under less pressure to raise funds from savers and we have seen savings interest rates continue to slide through the pandemic. This is perhaps an unanticipated consequence of the measures to fund businesses through the crisis.”
NAB also reduced a number of term deposit interest rates today, by between 0.05 and 0.15 percentage points. A 12-month term deposit with the bank now earns just 0.70%, down from 0.85%.
What are the top savings account rates on Canstar’s database?
- 2% – Rabobank’s High Interest Savings Account (0.55% base rate + 1.45% introductory rate for the first four months)
- 1.90% – Heritage Bank’s Online Saver (0.80% base rate + 1.10% introductory rate for the first four months)
- 1.70% – Bank of China’s Online Saver (0.60% base rate + 1.10% introductory rate for the first four months)
- 1.65% – MyState Bank’s Bonus Saver (0.15% base rate + 1.50% conditional bonus rate)
- 1.60% – UBank’s USave Savings Bonus (0.54% base rate + 1.06% conditional bonus rate)
Source: www.canstar.com.au – 29/09/2020. Based on savings account rates on Canstar’s database for a deposit amount of $10,000. Includes flexible savings accounts that allow flexible access to balance whilst paying an interest rate and bonus savings accounts that pay a bonus rate when conditions are met each month. Top 5 products selected and listed in descending order based on Total Rate, followed by Base Rate. Total Rate includes the base rate plus any applicable conditional bonus rate or promotional rate. 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.