NAB cuts term deposit rates as savings squeeze tightens
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.
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.