NAB adds to savings account woes while neobanks hit their stride
In a surprise move announced yesterday and implemented today, NAB has reduced interest rates on two popular savings accounts by up to 0.15%
NAB cut the maximum interest rate available on its iSaver account from 1.70% to 1.55% (-0.15%), while the maximum rate on offer with the Reward Saver account was reduced from 1.61% to 1.50% (-0.11%).
Today’s cuts were the fifth time the major bank has reduced interest rates on both savings accounts in the past year, with Mozo Banking Expert, Peter Marshall, surprised by NAB’s decision.
“It’s unusual for a change to be coming through right at the moment. It's been a long time since the last RBA rate cut and while there could be another in a couple of weeks when we get to the February meeting, that’s far from a certainty,” he said.
“So why they’d be chopping any key savings rates right now is very surprising.”
In comparison to the ongoing savings account rates offered by the rest of the Big Four, the NAB Rewards Saver account is now the third highest, sitting behind Westpac’s Life account (1.65%) and ANZ’s Progress Saver account (1.60%), but well ahead of the Commonwealth Bank’s Goal Saver (0.90%).
For perspective, the average ongoing savings account rate in the Mozo database which includes both ongoing account rates with (e.g. minimum deposits) and without conditions currently sits at just 0.98%.
Neobanks take poll position
While NAB were preparing to drop savings rates yesterday, one of the newest banking players in Australia were in the process of launching a brand new savings account with one of the highest interest rates currently on the market.
Offering an ongoing rate of 2.25% for balances up to $245,000, the Stash savings account from neobank Xinja immediately claimed the position of equal-highest ongoing interest rate in the Mozo database.
As the table below shows, Xinja’s new account shares that position with two other neobanks: the Up Saver Account (2.25% for balances up to $50,00) and the 86 400 Save Account (2.25% for balances up to $100,000).
Highest ongoing savings account rates in the Mozo database (16/01/2020)
Interest Rate | Conditions* | |
---|---|---|
Xinja - Stash | 2.25% (Up to $245k) | No |
86 400 - Save Account | 2.25% (Up to $100k) | Yes |
Up - Saver Account | 2.25% (Up to $50k) | Yes |
Volt - Savings Account | 2.15% (Up to $245k) | No |
BOQ - Fast Track Saver | 2.15% (Up to $250k) | Yes |
However, unlike the accounts from Up and 86 400, the Xinja Stash account has no minimum requirements for savers to meet.
In that respect, along with the rate on offer, Xinja’s offer is similar to the account revealed by neobank Volt Bank last month. Once it fully launches in February, the Volt Savings Account will feature a 2.15% with no strings attached.
As Marshall explains, a savers ability to meet any rate requirements attached to their account can potentially have a sizeable impact on the interest rate they’re getting.
“For a while now banks have been offering ongoing bonus rates as their prime rates to reward people for doing things like depositing their salary or using their bank account regularly - really as a way to build that relationship,” he said.
“It’s a bit of a carrot and stick relationship where the carrot’s a great rate, but the stick, which is easy to lose sight of, is that if you fail to meet those conditions then you get hit with an extremely low rate.”
“That’s why it’s really great to see some of the newer players coming into the market without those kinds of arrangement and really just saying to savers that if you put your money with us, you're going to get that great rate month in, month out.”
RELATED: Neobank Volt has released its savings account rate and it could be a ‘game changer’
Ready to ditch your current savings account in favour of something more rewarding? Start your search by checking out some of the hot offers below, or take a trip to our handy savings account comparison tables for an even wider range of offers.
*Check out the linked reviews for full information about any conditions required to meet the maximum interest rate on offer.
Compare savings accounts - last updated 19 March 2024
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Mozo experts choice awards won:
- No Strings Savings - 2023
Savings Account
5.35% p.a. (for $0 to $250,000)
4.75% p.a.(for $0 to $1,000,000)
Yes up to $250,000
Bonus variable rate is available for the first four months.
Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.
CompareCompareSavings Account
Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.
- Maximum rate
- 5.35% p.a. (for $0 to $250,000)
- standard interest rate
- 4.75% p.a.(for $0 to $1,000,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus variable rate is available for the first four months.
- Access
- BPay, Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must have a Macquarie Transaction Account to link with.
Read our Mozo Review to learn more about the Macquarie Savings Account
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Reward Saver Account
5.25% p.a. (for $0 to $1,000,000)
0% p.a.(for $0 and over)
Yes up to $250,000
Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.
Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.
CompareCompareReward Saver Account
Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.
- Maximum rate
- 5.25% p.a. (for $0 to $1,000,000)
- standard interest rate
- 0% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.
- Access
- ATM, EFTPOS, Visa Debit, Cheque book, BPay, Branch access, Phone banking, Internet banking, Bank@Post
- Minimum balance
- $0.00
- Other restrictions
- -
Read our Mozo Review to learn more about the IMB Bank Reward Saver Account
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Mozo experts choice awards won:
- Kick Start Savings - 2023
- No Strings Savings - 2023
High Interest Savings Account
5.75% p.a. (for $0 to $250,001)
4.40% p.a.(for $0 to $250,001)
Yes up to $250,000
Bonus rate for the first 4 months from account opening
Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.
CompareCompareHigh Interest Savings Account
Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.
- Maximum rate
- 5.75% p.a. (for $0 to $250,001)
- standard interest rate
- 4.40% p.a.(for $0 to $250,001)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate for the first 4 months from account opening, reverting to standard variable rate. Rate shown is for Personal customers and is subject to change. Different rates apply to Business/SMSF customers.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read our Mozo Review to learn more about the Rabobank High Interest Savings Account
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High Interest Save Account
5.10% p.a. (for $0 to $250,000)
0.10% p.a.(for $0 and over)
Yes up to $250,000
Deposit at least $200 to either Spend or Save account from an external source each month.
No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.
CompareCompareHigh Interest Save Account
No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.
- Maximum rate
- 5.10% p.a. (for $0 to $250,000)
- standard interest rate
- 0.10% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Deposit at least $200 to either Spend or Save account from an external source each month.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Account can only be opened through iOS or Android app, but may be accessed through internet banking.
Read our Mozo Review to learn more about the ubank High Interest Save Account
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Hero Saver
4.60% p.a. (for $0 to $250,001)
1.00% p.a.(for $0 to $5,000,001)
Yes up to $250,000
Minimum deposit of $200 and no withdrawals in the month.
Earn a generous variable rate on balances up to $250,001 each month you deposit at least $200 (excluding interest) on or before the last business day each month and make no withdrawals during the month. $0 account maintenance fees. Create a goal, set up regular deposits and track your progress on the Bankwest app.
CompareCompareHero Saver
Earn a generous variable rate on balances up to $250,001 each month you deposit at least $200 (excluding interest) on or before the last business day each month and make no withdrawals during the month. $0 account maintenance fees. Create a goal, set up regular deposits and track your progress on the Bankwest app.
- Maximum rate
- 4.60% p.a. (for $0 to $250,001)
- standard interest rate
- 1.00% p.a.(for $0 to $5,000,001)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Minimum deposit of $200 and no withdrawals in the month.
- Access
- Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- -
Read our Mozo Review to learn more about the Bankwest Hero Saver
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^See information about the Mozo Experts Choice Savings Account Awards
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