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Big 4 bank cuts retirement savings rate

  • April 22 2020
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Borrow

Big 4 bank cuts retirement savings rate

By Cameron Micallef
April 22 2020

One of Australia’s largest banks has reduced the savings rate given to retirement accounts as the COVID-19 pandemic reduces interest rates around the world.

Big 4 bank cuts retirement savings rate

Big 4 bank cuts retirement savings rate

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  • April 22 2020
  • Share

One of Australia’s largest banks has reduced the savings rate given to retirement accounts as the COVID-19 pandemic reduces interest rates around the world.

Big 4 bank cuts retirement savings rate

NAB has announced a reduction on its retirement account rate for balances over $50,000 by 0.25 per cent, in line with a reduction of NAB’s Reward Saver, which has also been reduced by 0.25 per cent.

Canstar’s finance expert, Steve Mickenbecker, believes retirees who need to rely on the income have been particularly hurt by the bank changing its rates.

“Retirees are particularly hard hit by NAB’s latest rate changes, with the interest rate for savings between $50,000 and $249,999 down to only 0.36 per cent,” Mr Mickenbecker said.

Mr Mickenbecker also highlighted that retirees need to check the fine print on their savings accounts due to many terms and conditions surrounding withdrawals.

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“With a total rate of 1 per cent, NAB’s Reward Saver may be an option for savers who are able to meet the bonus conditions every month. However, a no withdrawal condition may rule it out for many savers and certainly retirees,” Mr Mickenbecker explained.

With lower rates across the board, savers looking to get ahead need to get creative and potentially look at switching providers to take advantage of introductory rates.

“Savers have to work hard to achieve a decent return. At the major banks, it means segregating your savings between money needs coming up and money you can tie up for 10 months or a year if you want to earn higher returns in a term deposit,” Mr Mickenbecker said.

 

Canstar has put together the top rates retirees can currently get on the market

5-Star Rated Bonus Saving Accounts with the Top Rates

Company

Account

Base Rate

Bonus Rate

Total Rate

MyState Bank

Bonus Saver

0.30%

1.70%

2.00%

BOQ

Fast Track Saver

0.20%

1.80%

2.00%

Suncorp Bank

Growth Saver Account

0.20%

1.60%

1.80%

ING

Savings Maximiser

0.10%

1.70%

1.80%

ME

Online Savings Account

0.10%

1.70%

1.80%

Big 4 bank cuts retirement savings rate
Big 4 bank cuts retirement savings rate
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About the author

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Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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