NAB cuts term deposit rates as savings squeeze tightens

By Peter Terlato · · 2 min read
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Man walking past NAB logo in city

NAB has trimmed its term deposit rates once more, continuing a downward spiral that began even before the Reserve Bank of Australia’s first cash rate cut in February 2025.

Effective Monday 28 April 2025, NAB reduced interest rates across most of its term deposit options for balances between $5,000 and $1,999,999. The cuts impact both short-term and long-term deposits, further tightening returns for Aussie savers.

Here’s a quick look at the latest NAB term deposit rate changes:

Term
 New rate
 Previous rate
30 days
 1.25% p.a.
 –
60 days
 1.45% p.a.
 –
90 days
 2.90% p.a.
 3.00% p.a.
4 months
 3.05% p.a.
 –
5 months
 3.15% p.a.
 –
6 months
 3.20% p.a.
 3.30% p.a.
7 months
 4.20% p.a.
 4.25% p.a.
8 months
 3.40% p.a.
 3.50% p.a.
9 months
 3.40% p.a.
 3.50% p.a.
10 months
 3.50% p.a.
 3.60% p.a.
11 months
 3.50% p.a.
 3.60% p.a.
12 months
 3.90% p.a.
 4.00% p.a.
13–23 months
 3.80% p.a.
 4.00% p.a.

Customers choosing half-yearly, quarterly or monthly interest payments will also see cuts. However, NAB’s 24-month and longer term deposit rates remain unchanged.

Compare term deposit interest rates

Why term deposit rates are falling

The latest term deposit cuts are part of a broader shift that's been building since late 2024. Even before the Reserve Bank of Australia (RBA) trimmed the cash rate in February 2025, banks had been steadily winding back deposit rates in response to slowing inflation, and growing signs of economic softness.

Mozo’s live blog reported that the big four banks slashed savings and term deposit rates throughout January and February, with bonus savings accounts losing up to 0.50% p.a. in some cases. Regional and smaller banks followed, often cutting even more aggressively to stay competitive. Economists and markets also point to further RBA cuts this year, putting even more pressure on deposit returns.

In short: Banks are getting ahead of cheaper funding and depositors are feeling the pinch.

What savers can do now

If you’re facing shrinking returns, there are other options to explore:

  • Employ unique strategies: Term deposit laddering allows you to split your money across different terms to balance access and better rates.
  • Switch to savings: Some high-interest savings accounts still offer competitive rates, especially if bonus conditions are met.
  • Compare rates regularly: With banks adjusting offers quickly, checking interest rates could help you lock in a better deal.
Last updated 19 May 2025 Important disclosures

Term deposit comparisons on Mozo

Government Deposit Guarantee: Funds protected up to $250k
  • Promoted

    Term Deposit

    Best rate
    4.60 % p.a.
    for 6 months
    ($1,000 to $2,000,000)
    Next best option
    4.55 % p.a.
    for 3 months
    ($1,000 to $2,000,000)
    Go to site
    • 0.10% added loyalty bonus at renewal
    • Option to have interest paid to another bank
    • Winner of the Mozo Experts Choice Awards 2025^ for Term Deposits.
  • Promoted

    SMSF Term Deposit

    Best rate
    4.60 % p.a.
    for 6 months
    ($1,000 to $2,000,000)
    Next best option
    4.55 % p.a.
    for 3 months
    ($1,000 to $2,000,000)
    Go to site
    • Interest paid monthly, yearly, or at maturity
    • Choose from terms of 3 months up to 5 years
    • Only accessible to SMSFs with two or up to four individual trustees or one corporate trustee.
  • Promoted

    Term Deposit

    Best rate
    4.55 % p.a.
    for 4 months
    ($5,000 to $1,000,000)
    Next best option
    4.50 % p.a.
    for 6 months
    ($5,000 to $1,000,000)
    Go to site
    • Minimum $5K investment
    • Open account in as little at 5 mins
    • Interest paid at maturity for terms less than 1 year
  • Promoted

    6 Month Term Deposit Special

    • New deposits only
    Best rate
    4.65 % p.a.
    for 6 months
    ($50,000 to $1,000,000)
    Next best option
    No other rates match this filter
    Go to site
    • Limited time offer for 6 months
    • Available for personal and SMSF investors
    • Interest paid on maturity

  • 6 Month Term Deposit Special

    • New deposits only
    Best rate
    4.65 % p.a.
    for 6 months
    ($50,000 to $1,000,000)
    Next best option
    No other rates match this filter
    Go to site
    • Limited time offer for 6 months
    • Available for personal and SMSF investors
    • Interest paid on maturity
Showing 4 results from 92 term deposits. Use the filters to see more

* Different interest rates apply to different amounts or different interest payment frequencies.

^See information about the Mozo Experts Choice Term Deposit Awards

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