Retirees, savers dealt another blow as NAB slashes interest rates

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on April 23, 2020
Retirees, savers dealt another blow as NAB slashes interest rates

Source: Wikimedia Commons

National Australia Bank cut its 'Reward Saver' and Retirement Account interest rates by 25 basis points on Tuesday.

This comes after the bank made a 25 basis point cut to its 'iSaver' account last week.

Through the 'Reward Saver', the base interest rate is just 0.05% p.a, while the bonus interest rate is now 0.95% p.a.

The bonus applies to account balances up to $50,000.

To get the bonus, customers must make at least one deposit and no withdrawals each month.

For the bank with the slogan 'more than money', NAB's Retirement Account has also seen a 25 basis point cut to its interest rate that applies to balances above $50,000.

That interest rate is just 0.36% p.a for balances between $50,000 and $249,999. 

Interest is calculated daily and paid quarterly on this account, as opposed to the more common monthly interest payment.

Market-wide, the cuts bring NAB in-line with other big four savings accounts:

  • ANZ Progress Saver: 1.00% p.a (0.99% p.a bonus, 0.01% p.a base rate)
  • CommBank Goal Saver: 0.50% p.a (0.40% p.a bonus, 0.10% p.a base rate)
  • Westpac Life: 1.30% p.a (0.90% p.a bonus and 0.40% p.a base)

Interestingly, with headline inflation at 1.80%, savers are effectively losing money over the course of a year if they receive a 1.00% interest rate.

Comparing the big four banks' interest rates on their savings accounts, they lag behind other market-leading competitors in the space, as seen in the table below.

Lender

4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

Online Saver (Amounts < $499999)

    4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

    High Interest Savings Account (< $250k)

      4001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

      Online Saver ($1-$100k)

        0100$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

        Mighty Saver

          000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

          Online Savings Account (<$250k)

            4001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

            Lifestyle Account (< $75k)

              000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

              Bonus Saver Account (Amounts < $100k)

                Rates based on a savings balance of $10,000. Introductory bonus interest rate products not included. Sorted by total interest rates. Refer to providers' websites for bonus rate conditions. Rates correct as of June 28, 2022. View disclaimer.

                There are also a bevy of introductory rate savings accounts out there, with higher interest rates for four to six months, however the rates after that period usually revert to something much lower.

                Lender

                4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                Online Saver (Amounts < $499999)

                  02000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                  PremiumSaver (Amounts < $250k)

                    3000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                    Serious Saver (<$1m)

                      0100$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                      mySaver < $50k

                        4001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                        WebSavings Account (New Customer) ($2,000+)

                          Rates based on a savings balance of $10,000. Sorted by total interest rate. Refer to providers' websites for bonus rate conditions. Note that the base rate will apply once the introductory term has passed. Rates correct as of June 28, 2022. View disclaimer.


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                          author-avatar
                          Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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