Relief for savers as NAB and Westpac increase savings account rates

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on May 04, 2022 Fact Checked
Relief for savers as NAB and Westpac increase savings account rates

Following the RBA's decision to lift the cash rate, Westpac and NAB are breathing new life into savings accounts.

Mortgage rates aren't the only interest rates on the way up following the RBA's first cash rate increase in over a decade, with Westpac and NAB the first of the big-four to signal an increase to savings account rates.

Westpac

Westpac will lift rates on its 'Westpac Life', 'Westpac 55+ and Retired' products by 25 basis points from 17 May 2022.

Westpac's new savings account rates are as follows:

  • Westpac Life Savings Account will increase up to 0.50% p.a.
  • Westpac 55+ and Retired Savings Account with balances from $0 to less than $9,999 will increase up to 0.30% p.a.
  • Westpac 55+ and Retired Savings Account on the part of the balance from $9,999 to less than $49,999 will increase up to 0.30% p.a.
  • Westpac 55+ and Retired Savings Account on the part of the balance from $49,999 to less than $249,999 will increase up to 0.35% p.a.
  • Westpac 55+ and Retired Savings Account on the part of the balance from $249,999 and over will increase up to 0.50% p.a.

Westpac Chief Executive Consumer & Business Banking Chris de Bruin said this will provided much needed relief for savers following a lengthy period of record-low interest rates.

NAB

NAB will lift rates on its 'Reward Saver' product offering by 25 basis points from 13 May 2022.

This increase will see NAB's Reward Saver Savings Account rate lift up to 0.50% p.a.

"The historic low interest rates have been difficult for our savings and deposit customers, including more than 1.3 million customers with a reward saver account. We want to support them as interest rates rise again," said Rachel Slade, NAB's group executive of personal banking.

Savers lured by alternative methods

Despite a savings account rate increase, Aussies are tipped to continue to search for alternate savings methods to maximise their potential returns.

Charlie Karaboga, CEO and co-founder of blockchain powered fintech Block Earner, said for savers the RBA’s 25 base point increase won't close the 5.1% inflation gap.

"Unfortunately Australia’s inflation woes are largely being caused by factors outside of the country, like the Ukraine war, and so a rise in interest rates is unlikely to bring inflation down for some time," Mr Karaboga said. 

"Although the rate announcement is a step in the right direction, it shines a light on the archaic and outdated systems through which Australians are expected to save for major life milestones like retirement, breaking into the housing market or getting married.

"As inflation and interest rates continue to rise, now is the time for Australians to reconsider their investment strategies — by spreading their nest eggs more equally between the traditional and decentralised finance worlds.

"This is game changing particularly for millennials who have struggled to get a leg up on the property ladder, and who will continue to do so if they are not exposed to a more diverse set of savings and investment opportunities."


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      Online Saver ($1-$100k)

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        Reward Saver

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          BU Savings Account

            Rates based on a savings balance of $10,000. Sorted by total interest rates. Refer to providers' websites for bonus rate conditions and for any applicable fees and charges. Rates correct as of May 26, 2022. View disclaimer.


            Image by Joslyn Pickens via Pexels

            Disclaimers

            The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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            author-avatar
            Jacob Cocciolone joined the Savings team in 2021 as a Finance Journalist. Driven by a passion for keeping Australians up to date with the latest financial news and trends, his areas of interest include financial technology, investing, property and motoring.

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