Savers’ rates get the chop
Big four bank, NAB, has today cut the rates on its two main savings accounts on the back of Tuesday’s cash rate decision
25 May 2025
Big four bank, NAB, has today cut the rates on its two main savings accounts on the back of Tuesday’s cash rate decision
Big four bank, NAB, has today cut the rates on its two main savings accounts on the back of Tuesday’s cash rate decision, seven days ahead of the bank’s cuts to variable mortgages.
Rate tracking shows NAB bank has cut the maximum ongoing rate to its Reward Saver by 0.25 percentage points down to 4.40%.
NAB’s iSaver account has also dropped by the same amount, down to an introductory rate of 4.65% and an ongoing rate of just 1.50%.
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| NAB savings rates – effective 23 May | |||
|---|---|---|---|
| Old max rate | New max rate | Change | |
| Reward Saver | 4.65% | 4.40% | -0.25% |
| iSaver | 4.90% for 4 mths then 1.75% | 4.65% for 4 mths then 1.50% | -0.25% |
Source: Canstar.com.au. Notes: conditions and balance caps apply for maximum rate on select accounts. Contact us for a breakdown on base and bonus rates.
Other banks slicing savings rates – some ahead of mortgages
Since the RBA cash rate decision on Tuesday afternoon, a handful of banks have already moved some savings rates, including challenger bank Macquarie.
Macquarie Bank’s savings changes have been made at the same time as its home loan rate reductions, which the bank brought forward to today to give its mortgage customers more immediate relief.
However, some banks have moved savings rates ahead of their scheduled mortgage changes, including NAB, AMP and Great Southern Bank.
Westpac is also making its savings rate changes four days ahead of mortgages, with select savings rates set to move next Friday and mortgages moving the following Tuesday (3 June).
CBA and ANZ savings rates are still under review.
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| Macquarie Bank savings rate changes today | |||
|---|---|---|---|
| Old max rate | New max rate | Net change | |
| Savings account | 5.10% for 4 months then 4.75% | 4.85% for 4 months then 4.50% | -0.25% to intro rate and ongoing rate |
| Transaction account | 2.50% | 2.25% | -0.25% |
Source: Canstar.com.au. Notes: Macquarie’s introductory rate is available on balances up to $250k, ongoing rate available on balances up to $1m.
Some savings rates starting with a ‘5’ remain, but for how long?
Our research shows there are currently 12 banks offering at least one ongoing savings rate at 5% or more. This includes accounts for young adults but excludes kids’ accounts.
However, if these 12 banks pass on the full cut in the coming weeks, this list will shrink to just four. With current ongoing savings rates of 5.25% or more, ING, MOVE Bank and BOQ could be three of the sole survivors, with Westpac already confirming it will retain one savings rate at 5%.
Term deposit rates tumble further
Big four bank, Westpac, has today cut a range of term deposit rates by up to 0.25 percentage points, while ANZ has cut one by 0.10 percentage points.
Canstar tracking shows eight banks have cut at least one term deposit rate since the RBA decision on Tuesday, including one of the market leaders, Judo Bank, while almost 50 banks have cut in the past month.
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| Highest term deposits on Canstar.com.au | ||
|---|---|---|
| Term | Bank | Rate |
| 6 mth | Heartland | 4.75% |
| 1-year | Qudos | 4.50% |
| 2-year | Qudos | 4.30% |
| 3-year | Qudos | 4.10% |
| 4-year | Judo Bank | 4.35% |
| 5-year | Judo Bank | 4.45% |
Source: Canstar.com.au – 23/05/2025 12:00 PM AEST. Notes: All payment frequencies included.
Latest rate cuts are just the start
Canstar’s data insights director, Sally Tindall says, “This is just the start of what will be an onslaught of rate cuts for savers.”
“These cuts from big bank, NAB, and challenger bank Macquarie are just the tip of the iceberg. Savers need to stay alert as some banks are moving quickly following Tuesday’s RBA decision.
“It’s disappointing to see some banks chop savings rates ahead of their mortgage rates. One day, it would be fantastic to see a bank reverse this order to benefit its mortgage and savings customers, rather than themselves.
“If you’ve already seen your savings rate drop, don’t get mad, get even by taking your savings rate shopping.
“The glory days of savings rates that start with a ‘5’ are dwindling, however, it’s still worth shopping around. Macquarie Bank’s new ongoing rate of 4.50 per cent, with no monthly terms and conditions to trip customers up, is likely to be one of the highest rates in this particular category once all the banks have declared their post-May RBA rates.
“If your savings rate has already changed, it could be worth holding steady for the next couple of weeks until the rest of the market has made their changes before you weigh up your options so that you’re comparing apples with apples.”
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Cover image source: Miljan Zivkovic/Shutterstock.com
This article was reviewed by our Finance Editor Jessica Pridmore before it was updated, as part of our fact-checking process.
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