Competition in savings pays dividends for Australians

Huge numbers of Australians are taking advantage of increased savings rates, with term deposits surging in popularity.

NAB insight reveals that there has been a 1,200% increase in the number of 12-month term deposits opened in the past three months compared to the same period last year.[1]

The bank has also seen a 29% increase in the number of new NAB savings accounts being opened in the past three months. [2]

More than 1,000 new iSaver or Reward savings accounts a day have been opened since 1 July, 2022. [3]

The new data comes as NAB today announced the following changes to its savings products from Friday 11 November:

• • NAB’s iSaver intro rate will increase by 0.50%p.a. from 3.00% to 3.50%
  • NAB’s Reward Saver bonus will increase by 0.25%p.a. from 2.50% to 2.75%

NAB Executive for Everyday Banking, Paul Riley said the savings market was particularly competitive and active right now.

“The fact we are seeing hundreds of new accounts opened every day by new and existing customers reflects how much customers are shopping around,” Mr Riley said.

“It’s always worth taking the time to check out what’s on offer – it’s a savers market.”

Recent NAB research also revealed savings aspirations among Australians remained very high, with 76% of adults trying to save.[4]

Mr Riley said the most competitive rate depends on how much a customer wants to put away in savings and how quickly they want to access their funds as cash.

“While account balances remain fairly steady, the rise in the cost of living has clearly prompted customers to be more price savvy and you can see banks across the board responding to that,” Mr Riley said.

“At NAB, we’ve made more than 40 increases on savings products since May.

“People often overlook term deposits as they can seem complex at first glance. Term deposits are ideal for longer term goals like saving for a house deposit as you earn a higher interest rate with a built-in incentive to stop you dipping into your savings.

“NAB’s 12-month term deposit is very popular right now and, from Friday, will offer 3.75% pa.”