Major blow for millions of Aussies with cash in a bank account

•  NAB slashes savings rates

By STEPHEN JOHNSON, ECONOMICS REPORTER FOR DAILY MAIL AUSTRALIA

Published: 04:32 BST, 23 May 2025 | Updated: 04:53 BST, 23 May 2025

Australian savers are getting punished following the Reserve Bank’s latest rate cut.

NAB, a Big Four bank, has slashed its Reward Saver rate by 25 basis points to 4.4 per cent.

The bank’s iSaver rate also fell by 25 basis points to 4.65 per cent but only for four months. 

NAB’s quarter of a percentage point drop in saving rates were in line with the Reserve Bank’s Tuesday rate cut of 25 basis points, that took the cash rate to 3.85 per cent for the first time since June 2023.

While RBA rate cuts are good news for borrowers, they are bad for savers who are either trying to save up for a mortgage deposit or live off the age pension.

Canstar data insights director Sally Tindall said savers were set for more punishment.

‘This is just the start of what will be an onslaught of rate cuts for savers,’ she said.

Macquarie Bank has also cut its savings account rate by 25 basis points to 4.85 per cent.

Australian savers are getting punished following the Reserve Bank’s latest rate cut

‘These cuts from big bank, NAB, and challenger bank Macquarie are just the tip of the iceberg,’ Ms Tindall said.

‘Savers need to stay alert as some banks are moving quickly following Tuesday’s RBA decision.’

Ms Tindall slammed the big banks for using RBA rate cuts to get publicity for reducing mortgage rates, only to provide relief for borrowers after punishing savers. 

‘It’s disappointing to see some banks chop savings rates ahead of their mortgage rates,’ she said.

‘One day, it would be fantastic to see a bank reverse this order to benefit its mortgage and savings customers, rather than themselves.’

The latest Reserve Bank rate cuts mean term deposit rates have fallen under five per cent. 

Heartland offers the highest rate of 4.75 per cent for six months.

Qudos offers 4.5 per cent for one year, 4.3 per cent for two years and 4.1 per cent for three years.

Judo Bank offers 4.35 per cent for four years and 4.45 per cent for five years. 

Canstar data insights director Sally Tindall said savers were set for more punishment

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Major blow for millions of Aussies with cash in a bank account

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