National Australia Bank (NAB) has become the second of the big four banks to cut its savings interest rates, delivering a significant blow to depositors just days after the Reserve Bank of Australia (RBA) announced a reduction in the official cash rate. <\/p>\n\n\n\n
NAB lowered rates on its Reward Saver and iSaver accounts by 25 basis points, with returns now at 4.4% and 4.65% respectively. This move comes amid broader market expectations of continued rate cuts through early 2026.<\/p>\n\n\n\n
Westpac was the first of the big four to act, cutting savings rates by the same margin\u2014also 25 basis points\u2014four days before adjusting mortgage rates. Industry analysts warn this could be the start of a wider trend, with more banks expected to follow. <\/p>\n\n\n\n
The RBA’s latest decision brought the cash rate down from 4.10% to 3.85%, marking the second rate cut in the current cycle, following a similar reduction in February and a pause in May.<\/p>\n\n\n\n
Sally Tindall<\/a>, research director at Canstar, described NAB\u2019s move as \u201cjust the tip of the iceberg\u201d for Australian savers. She noted that it’s become common for banks to cut savings rates ahead of mortgage rates, impacting customers who rely on deposit interest. \u201cIt\u2019s disappointing to see some banks chop savings rates ahead of their mortgage rates,\u201d she said. \u201cOne day, it would be fantastic to see a bank reverse this order.\u201d<\/p>\n\n\n\n Tindall also highlighted that the era of savings rates starting with a five may soon be over, with the highest offers shrinking rapidly. Macquarie Bank, for instance, now offers an ongoing rate of 4.50% with no monthly conditions\u2014a figure that could soon stand as one of the best in the market, once all banks adjust post-RBA rate announcements<\/a>.<\/p>\n\n\n\n RBA has officially CUT rates by 0.25%. NAB’s decision is in line with forecasts predicting that the cash rate could fall to 2.6%<\/strong> by early 2026, as stated by NAB CEO<\/a> Andrew Irvine. He described the current period as one of economic uncertainty, citing global instability but expressing confidence in Australia’s economic fundamentals. <\/p>\n\n\n\n \u201cWe enter this period of instability in a strong position,\u201d Irvine said. \u201cWe have unemployment that\u2019s very low. I believe we will see three or four base-rate reductions that will stimulate the domestic economy.\u201d<\/p>\n<\/blockquote>\n\n\n\n The RBA\u2019s current easing path reflects its broader effort to manage inflation and support growth. Market analysts now expect at least three more rate cuts before February 2026<\/strong>, and NAB itself had previously forecast as many as five. While these changes could offer relief to mortgage holders, they come at a cost to savers, who continue to face diminishing returns.<\/p>\n\n\n\n
NAB is the First of the Big 4 to slash rates by the Full amount.
Australians have been warned not to potentially see another Rate Cut this year due to the Global Outlook and that the RBA will remain 'prudent' – Relating to bond markets pic.twitter.com\/yF8zT0RNpx<\/a><\/p>— Mickamious (@MickamiousG) May 20, 2025<\/a><\/blockquote>\n\n\n\nBroader Economic Implications and Forecasts <\/h2>\n\n\n\n
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