NAB joins CommBank and Westpac by trimming its savings rates

Finance Journalist · 29 January 2021

National Australia Bank has followed in the footsteps of rival majors CommBank and Westpac by taking the knife to its savings account interest rates this month.

NAB super class action
Source: TK Kurikawa (Shutterstock)

NAB has made cuts of 0.15 percentage points to the bonus and introductory rates on its Reward Saver and iSaver accounts.

The new rates, effective Friday, 29 January, are:

  • NAB Reward Saver – 0.40% (0.05% base rate + 0.35% bonus rate if you meet certain bonus conditions each month)
  • NAB iSaver – 0.45% (0.05% base rate + 0.40% introductory rate for the first four months)

Canstar finance expert Steve Mickenbecker said today’s cuts by NAB continued the bad run savers have experienced with interest rates over the last couple of years, with many rates now  precariously close to zero.

“Savers have been the big losers, with the big bank savings rates falling by an average of 1.11 percentage points in a 12-month period, while the Reserve Bank cash rate has only fallen by 0.65 percentage points in that time,” Mr Mickenbecker said.

Major Banks’ Savings Account Total Rates

Provider Account 29-Jan-2020 29-Jan-2021 Change
Flexible Savers ANZ Online Saver 1.55% 0.45% -1.10%
Commonwealth Bank NetBank Saver 1.65% 0.50% -1.15%
NAB iSaver 1.55% 0.45% -1.10%
Westpac eSaver 1.66% 0.40% -1.26%
Bonus Savers ANZ Progress Saver 1.60% 0.50% -1.10%
Commonwealth Bank GoalSaver 1.25% 0.45% -0.80%
NAB Reward Saver 1.50% 0.40% -1.10%
Westpac Life 1.65% 0.40% -1.25%

Source: – 29/01/2021. Based on the total rates of the major banks’ savings accounts for a deposit of $50,000. Total rate refers to the base rate plus any applicable promotional rate for a flexible saver or conditional bonus rate for a bonus saver. Conditions may apply to ongoing bonus rates, while promotional rates may only last for a limited time. Refer to the provider for more details.

While the savings rates of the major banks have continued to inch closer to zero, Mr Mickenbecker said there were still interest rates above 1% on Canstar’s database, including a maximum rate of 1.75% and up to 3% for savers aged 18 to 29.

“Savers owe it to themselves to cash in on these rates while they can,” he said.

In addition to the news that NAB would be slashing its savings rates, the major bank also revealed today it had agreed to acquire neobank 86 400 through a merger with its digital bank, UBank, in a $220 million deal.

What are the top 5 savings account rates on Canstar’s database?

Provider Account Base Rate Bonus Rate Promo Rate Promo Period Total Rate
Rabobank Australia High Interest Savings Account 0.30% 1.45% 4 months 1.75%
Macquarie Bank Savings Account 1.20% 0.15% 4 months 1.35%
ING Savings Maximiser* 0.05% 1.30% 1.35%
Heritage Bank Online Saver 0.65% 0.65% 4 months 1.30%
Bank of China Online Saver 0.40% 0.90% 4 months 1.30%

Source: – 29/01/2021. Based on savings accounts on Canstar’s database, with rates based on a deposit of $10,000. Table sorted in descending order by total rate, followed by base rate. Total rate includes the base rate plus any conditional bonus or introductory promotional rate. Conditions may apply to bonus and promotional rates, refer to the provider for more details. *The ING Savings Maximiser account’s bonus interest conditions will change from 1 March, 2021.

This article was reviewed by our Sub Editor Tom Letts before it was updated as part of our fact-checking process.

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