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.
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.
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 July 4, 2025. 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.
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.
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.
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.
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.
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.
Special offer: Savings Accelerator (Kick Starter offer).
For a limited time, new ING customers can get a bonus 0.75% p.a on their savings rate balances of $150,000 up to $500,000 for the first 4 months. T&Cs apply.
If your balance is over $500,000 (but less than $5 million) you will earn the ongoing variable rate of 4.20%
Disclosure
Savings Accelerator
Special offer: Savings Accelerator (Kick Starter offer).
For a limited time, new ING customers can get a bonus 0.75% p.a on their savings rate balances of $150,000 up to $500,000 for the first 4 months. T&Cs apply.
If your balance is over $500,000 (but less than $5 million) you will earn the ongoing variable rate of 4.20%
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 July 4, 2025. View disclaimer.
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Bernadette Lunas
Harry O'Sullivan
Denise Raward
