The major bank's full-year results released today revealed $175 billion out of $369 billion in bank deposits - that's transaction accounts, term deposits and savings accounts - are earning less than 0.25% p.a in interest. 

That's up significantly from a quarter of NAB's deposits last year. 

Want to earn a fixed interest rate on your cash? The table below features term deposits with some of the highest interest rates on the market for a six-month term. 

Provider

At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]5000$product[$field["value"]]$product[$field["value"]]More details
  • Easy online application
  • Interest can be paid to other institutions
  • Maturity alert by email and phone

Term Deposit - 6 months

  • Easy online application
  • Interest can be paid to other institutions
  • Maturity alert by email and phone
At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]10001$product[$field["value"]]$product[$field["value"]]More details
  • $1,000 minimum deposit
  • Easy online application
  • Let your money work for you

Term Deposit - 7 months

  • $1,000 minimum deposit
  • Easy online application
  • Let your money work for you
At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]5000$product[$field["value"]]$product[$field["value"]]More details
  • Guaranteed rate of return
  • Manage your term deposit online
  • Choose your own term - Options range from one month to five years

Term Deposit - 6 months

  • Guaranteed rate of return
  • Manage your term deposit online
  • Choose your own term - Options range from one month to five years
Annually, Semi-Annually, At Maturity, Monthly$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]5000$product[$field["value"]]$product[$field["value"]]More details

Term Deposit - 6 months

    At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]25000$product[$field["value"]]$product[$field["value"]]More details

    Term Investment ($25k-$100k) - 6 months

      At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]500031$product[$field["value"]]$product[$field["value"]]More details

      TDs Premier Investment ($5k - $250k) - 6 months

        Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]500031$product[$field["value"]]$product[$field["value"]]More details

        Term Deposit ($5000-$999999) - 6 months

          Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]25000031$product[$field["value"]]$product[$field["value"]]More details

          Term Deposit ($250k+) - 6 Months

            At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

            Term Deposit ($1000+) - 6 months

              Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

              Term Deposit ($1000+) - 6 months

                Annually, At Maturity, Monthly$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]1000031$product[$field["value"]]$product[$field["value"]]More details

                Term Deposit ($10000+) - 6 months

                  Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]1000031$product[$field["value"]]$product[$field["value"]]More details

                  Term Deposit - 6 months

                    Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]50007$product[$field["value"]]$product[$field["value"]]More details

                    Term Deposit - 6 Months

                      Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

                      Term Deposit - 6 months

                        At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]500031$product[$field["value"]]$product[$field["value"]]More details

                        Term Deposit - 6 months

                          At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]2500031$product[$field["value"]]$product[$field["value"]]More details

                          Term Deposit ($25k-$5m) - 6 months

                            At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]500000$product[$field["value"]]$product[$field["value"]]More details

                            Fixed Term Deposit ($500000+) - 6 months

                              At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]10007$product[$field["value"]]$product[$field["value"]]More details

                              Term Deposit ($1k-$1m) - 6 months

                                At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]250000$product[$field["value"]]$product[$field["value"]]More details

                                Fixed Term Deposit ($250000-$500000) - 6 months

                                  Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]50031$product[$field["value"]]$product[$field["value"]]More details

                                  Term Deposit ($500-$19999) - 6 months

                                    Important Information and Comparison Rate Warning

                                    All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of April 16, 2024. View disclaimer.

                                    Over one fifth (22%) of NAB's deposits earn less than 0.01% p.a - basically nothing - while 25% earns between 0.01% and 0.25%. 

                                    Only $42.5 billion, or 11.5%, earns above 1% p.a, something that would have seemed unfathomable just a few years ago. 

                                    As of September 2020, $121 billion of these deposits are in transaction accounts, which historically tend to earn little to no interest, but a further $217 billion is deposited in either savings accounts or term deposits, which do earn interest

                                    NABdpst1

                                    Source: NAB

                                    NAB's figures sum up a dismal deposit market 

                                    NAB's showcase of its deposits earning little to no interest could be emblematic of the market as a whole, as NAB has the third-most customer deposits in the entire market according to regulator monthly banking statistics.

                                    The second biggest, Westpac, revealed it has $550 billion in deposits in its own full-year results as at September 2020. 

                                    According to Westpac, 41% of these deposits are earning below 0.25% p.a, down from 33% in late March. 

                                    NABdpst2

                                    Source: Westpac

                                    ANZ meanwhile, the fourth biggest bank in terms of deposits, reported $179 billion worth of <0.25% p.a deposits in its full-year results, a near 20% increase from March to September 2020 and a more than 60% increase from September 2019. 

                                    NABdpst3

                                    Source: ANZ

                                    Australia's largest bank by deposit size, Commonwealth Bank, did not reveal an interest rate breakdown in its full-year results, but did say its deposit funding has increased from 69% in 2019 to 74% in 2020, now having more than $580 million in deposits as of September. 

                                    Deposits overall have increased among every major bank over the last several years, as well as across most other banks. 

                                    The COVID-19 pandemic exacerbated this trend. From March to June, when pandemic fears were at its peak, household deposits rose by 6.4%, or $64 billion, indicating a stockpiling of cash. 

                                    The household savings rate meanwhile increased immensely over the June quarter, rising from 2.5% of income to 19.8%

                                    This is a huge problem for those who rely on these deposits to earn an income, as deposit interest rates have plunged over the past year. 

                                    Prior to the June 2019's cash rate cut - the first in several years - the average term deposit rate across all terms offered on the market for a $10,000 deposit was around 2.30% p.a.

                                    Now, after comparing the market again, the average term deposit rate across all terms sits at roughly 0.75% p.a.

                                    After this week's 15 basis point cut, the cash rate now sits at an unprecedented 0.10%.

                                    This has made things even harder for savers, and Reserve Bank Governor Philip Lowe said those hardest-hit needed to carry a "heavy share of the burden for the collective good". 

                                    "In reaching today's decision, the Board also considered the effects on medium-term financial and macro stability as well as the impact on savers," Mr Lowe said. 

                                    "The Board recognises that low rates can encourage some additional risk-taking, as investors search for yield. It also recognises that low deposit rates can create difficulties for some people.

                                    “Lower rates will help support spending and ultimately will create jobs, so the broader community will benefit from today’s decision."

                                    Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest non-introductory interest rates on the market.

                                    Provider

                                    4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
                                    • Bonus rate for the first 4 months from account opening
                                    • No account keeping fees
                                    • No minimum balance

                                    High Interest Savings Account (< $250k)

                                    • Bonus rate for the first 4 months from account opening
                                    • No account keeping fees
                                    • No minimum balance
                                    010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                                    Savings Maximiser (<$100k)

                                      010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
                                      • Earn up to 5.40% pa by depositing $1,000 in the previous month
                                      • No account fees
                                      • Easy access to your money

                                      Saver Account (<$250k)

                                      • Earn up to 5.40% pa by depositing $1,000 in the previous month
                                      • No account fees
                                      • Easy access to your money
                                      4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
                                      • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
                                      • No withdrawal notice periods or interest rate penalties

                                      Savings Account (Amounts < $250k)

                                      • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
                                      • No withdrawal notice periods or interest rate penalties
                                      05001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
                                      • Maximum Age - 24

                                      Goal Saver

                                      • Maximum Age - 24
                                      02000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
                                      No monthly fees
                                      • Download the App to open your account
                                      • Get better visibility of your spending within App!
                                      • Deposit $200 per month to activate bonus interest
                                      No monthly fees

                                      Save Account

                                      • Download the App to open your account
                                      • Get better visibility of your spending within App!
                                      • Deposit $200 per month to activate bonus interest
                                      0200$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
                                      • No fees or penalties for withdrawing money
                                      • Savings guaranteed up to $250,000
                                      • Maximise your savings and reach your goals faster with Auto-Savings

                                      Bonus Saver Account (Amounts < $250k)

                                      • No fees or penalties for withdrawing money
                                      • Savings guaranteed up to $250,000
                                      • Maximise your savings and reach your goals faster with Auto-Savings
                                      010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
                                      For customers aged 14-35 years
                                      For customers aged 14-35 years

                                      Future Saver Account ( < $50k)

                                        010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                                        Boost Saver

                                          Important Information and Comparison Rate Warning

                                          All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of April 16, 2024. View disclaimer.