NAB cuts savings rates: Where can you find the top rates?

TAMIKA SEETO
Finance Journalist · 22 October 2021
In bad news for savers, National Australia Bank (NAB) today lowered the interest rates on its savings accounts and some term deposits. With savings rates from many banks continuing to drop, find out where you can find the best rates on Canstar’s database.
NAB savings cut
NAB has cut savings account interest rates. Image source: Nils Versemann/Shutterstock.com.

NAB cut the interest rates on both its iSaver and Reward Saver accounts by 0.05 percentage points on Friday. This is the third time NAB has lowered its savings rates this year, with rates falling a total of 0.30 percentage points on both the iSaver and the Reward Saver.

If you have your savings parked in a NAB iSaver account, you’ll now earn a maximum interest rate of 0.30% (0.05% base rate + a 0.25% introductory rate for the first four months). If your cash is in a NAB Reward Saver account, you’ll earn a total of 0.25% (0.01% base rate + a 0.24% bonus rate each month you make at least one deposit and no withdrawals).

The cut comes just days after Commonwealth Bank dropped interest rates on its NetBank Saver, GoalSaver and Youthsaver accounts.

NAB, CommBank and ANZ are now all offering bonus savings accounts with interest rates as low as 0.25%. Westpac’s bonus savings rate is marginally higher at 0.30%.

With interest rates from many banks at wafer-thin levels, it’s perhaps more important than ever to shop around. In fact, you may be able to earn up to ten times more interest if you are eligible to switch to one of the top savings rates on Canstar’s database.

Where can you find the best interest rates?

Westpac and Bank of Queensland are currently offering the top savings rates on our database, although not everyone can access them.

The Westpac Life account for 18- to 29-year-olds currently offers a 2.50% bonus interest rate. To secure that rate, you’ll need to grow your account balance and make five purchases each month with a linked Westpac debit card. The total bonus rate only applies to the first $30,000 in your account. For the rest of your balance, the bonus rate drops to 0.30%.

BOQ’s Fast Track Starter account for 14- to 24-year-olds also offers a 2.50% bonus interest rate. To get this, you’ll need to deposit $200 or more into a linked transaction account each month and make five or more eligible transactions – such as Visa Debit or eftpos card purchases, ATM withdrawals or direct debits – per month. The total bonus rate is available for balances up to $10,000; the bonus rate then drops to 1.05% for balances between $10,000 and $250,000.

Here’s a round-up of the top five savings rates on Canstar’s database at the time of writing:

  1. Westpac’s Life account for 18- to 29-year-olds – 2.50% (0.15% base rate + 2.35% conditional bonus rate)
  2. Bank of Queensland’s Fast Track Starter account for 14- to 24-year-olds – 2.50% (0.05% base rate + 2.45% conditional bonus rate)
  3. Virgin Money’s Boost Saver account – 1.50% (0.10% base rate + 0.30% promo rate for three months + 1.10% conditional bonus rate)
  4. Rabobank Australia’s High Interest Savings Account – 1.35% (0.25% base rate + 1.10% promo rate for four months)
  5. ING’s Savings Maximiser account – 1.35% (0.05% base rate + 1.30% conditional bonus rate)

Source: www.canstar.com.au – 22 October 2021. Savings account interest rates based on a deposit balance of $10,000 for accounts listed on Canstar’s database. Top 5 selected based on highest total rate. Total rate includes the base rate plus introductory and conditional bonus rates, where applicable. List sorted in descending order by total rate, followed by base rate. Check with banks directly for more details.


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This content was reviewed by Sub Editor Tom Letts and Senior News Journalist Ellie McLachlan as part of our fact-checking process.


Tamika covers personal finance for Canstar, specialising in banking and general insurance. She joined the team after completing a Bachelor of Journalism and Bachelor of Laws (Honours) at QUT. She has previously written for a range of news, music and arts publications.

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