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

NAB cuts savings rates again, now down over 1% in 2020
Staff reporterDecember 7, 2020

Australia’s third largest bank, NAB, has today cut rates on a range of savings, retirement and term deposit accounts.

NAB is the 30th bank to drop savings rates following the November 3 RBA rate cut. It’s also the third big four bank to cut savings rates in the space of a week, according to the database.

Someone with $50,000 in a NAB Reward Saver account was getting a max rate of 1.61 per cent at the start of the year, earning approximately $67 a month in interest. Today someone with the same balance would get a max rate of just 0.55 per cent and earn approximately $23 a month. research director, Sally Tindall, said: “Savings rates are dropping like flies. Thirty lenders have already cut rates with plenty more banks set to follow.”

“The big question now is how long will Westpac hold out, and will they cut their market-leading savings rate for young Australians?” she said.

“Westpac is currently offering 3 per cent for people aged between 18 and 29, although in the current climate, a rate like this has got to have a target on its back."

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