Saving Rates

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NAB cuts savings rates again, now down over 1% in 2020

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Savings rates continue to tumble, despite no move to the cash rate, with NAB the latest of the big four banks to cut its rates on Thursday by up to 0.10 per cent.
Australia’s fifth largest bank, ING, also dropped the maximum rate on its Savings Maximiser account today, while CBA cut the bonus rate on its GoalSaver earlier in the week for balances over $50,000.
Recent cuts:
NAB iSaver: introductory rate cut by 0.10% to 0.95% (first 4 mths). Ongoing rate unchanged at 0.05%.
NAB Reward Saver: bonus rate cut by 0.10%. Max rate is now 0.90%.
ING Savings Maximiser: max rate cut by 0.15%. Max rate is now 1.65%.
CBA GoalSaver: max rate cut by 0.05% for balances over $50K.
<img src="https://www.urban.com.au/images/2020/7/30/Savings%20RateCity.JPG" alt="">
Analysis of the RateCity.com.au database shows that 64 per cent of banks have cut at least one savings rate in the last two months, despite no move to the cash rate since March.
RateCity.com.au research director Sally Tindall said banks will continue to chip away at deposit rates to help balance their books.
“Banks are feeling the heat at the other end of the equation where there is immense pressure to put competitive home loan rates on the table,” she said.
“There’s little competition between the banks for deposits right now. As a result, banks can chip away at these rates, often without too much blowback.
“The exception here is Westpac. It’s offering 3 per cent on balances of up to $30,000 for anyone aged between 18 and 29.
“This is a remarkable offer from Westpac given the current environment. There’s daylight between this rate of 3 per cent and what’s on offer from its big four competitors,” she said.
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Savings rates keep falling with NAB & ING the latest to cut

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At call savings rates are continuing to fall ahead of the RBA’s meeting next week with the average interest rate cut recorded coming in at 0.17%, according to analysis by financial comparison site Mozo.com.au.
<a href="https://mozo.com.au/savings-accounts" target="_blank">Mozo</a> also found the average ongoing at call savings account rate is now sitting at just 0.97%, well below inflation at 1.80%.
The Big 4’s average rate for at call savings accounts is just 0.66%, 0.31% below the average. ANZ (-5bp), NAB (-11bp) and Westpac (-10bp) have all made significant cuts to their at call savings rates this year.
Mozo Director Kirsty Lamont said, "although the Reserve Bank has left official interest rates on hold since October, it hasn’t stopped some of our biggest banks slicing interest rates of most the popular savings accounts."
“The most recent interest rate cuts by the big banks is not great news for savers but if you are looking for a savings account currently the best ongoing bonus rate in our database today is 2.25%. That’s 1.28% higher than the average."
“If you don’t need to access your savings on a regular basis you could also consider hedging against a further official rate cut by switching to a fixed term deposit,” says Lamont.
Mozo found the average 6 month term deposit rate is 1.48%, with the highest 6 month term deposit rate being 1.95% through Judo Bank.
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Big banks continued with saving rate cuts: Mozo

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The National Bank of Australia (NAB), third largest bank in Australia has dropped interest rates on its savings accounts today. It has only been three months since it last cut rates for the same customers.
NAB’s iSaver account rate has been cut by 0.15 per cent to a maximum introductory rate of 1.55 per cent for four months.
While the maximum rate on NAB’s Reward Saver has dropped by 0.11 per cent to 1.50 per cent, if all conditions are met.
NAB has chosen not to reduce the base rate on either of its savings accounts.
NAB savings rate changes
<table style="width: 464px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td nowrap width="204">
NAB iSaver
</td>
<td nowrap width="87">
Old
</td>
<td nowrap width="87">
New
</td>
<td nowrap width="87">
 
</td>
</tr>
<tr>
<td nowrap width="204">
Base rate
</td>
<td nowrap width="87">
0.11%
</td>
<td nowrap width="87">
0.11%
</td>
<td nowrap width="87">
 
</td>
</tr>
<tr>
<td nowrap width="204">
Intro rate (4 mths)
</td>
<td nowrap width="87">
1.70%
</td>
<td nowrap width="87">
1.55%
</td>
<td nowrap width="87">
 
</td>
</tr>
</tbody></table>
Source: RateCity.com.au 
<table style="width: 372px; height: 47px;" border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td nowrap width="204">
NAB Reward Saver
</td>
<td nowrap width="87">
Old
</td>
<td nowrap width="87">
New
</td>
<td nowrap width="87">
 
</td>
</tr>
<tr>
<td nowrap width="204">
Base rate
</td>
<td nowrap width="87">
0.11%
</td>
<td nowrap width="87">
0.11%
</td>
<td nowrap width="87">
 
</td>
</tr>
<tr>
<td nowrap width="204">
Max rate (if conditions are met)
</td>
<td nowrap width="87">
1.61%
</td>
<td nowrap width="87">
1.50%
</td>
<td nowrap width="87">
 
</td>
</tr>
</tbody></table>
Source: RateCity.com.au 
Chief executive of <a href="http://ratecity.com.au/" target="_blank" data-auth="NotApplicable">RateCity.com.au</a>, Paul Marshall said, “NAB will stir the market with today’s decision to cut rates when the cash rate hasn’t budged”. 
“It’s a disappointing move from NAB to drop savings rates out of cycle, especially since the bank cut rates on these accounts by a quarter of a percent in October.
“For savers, this will be a bitter pill to swallow and many will be left wondering why they’ve had to endure yet another cut when rates were already close to zero. 
“Regular savers who strive for those maximum returns by meeting all the conditions will be the ones most impacted by these cuts, losing 0.11 per cent ongoing interest. 
“But ardent savers can find competitive rates if they are willing to look beyond the big banks, with neo banks 86 400, Up and Xinja leading the way with conditional rates of 2.25 per cent.”
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