Home News NAB cuts term deposit rates

NAB cuts term deposit rates

After cutting mortgage rates last week NAB has now slashed term deposit returns in anticipation of an RBA cut next week.

By Harry O'Sullivan

First published on 10 Feb 2025

Fact Checked

The highest term deposit rate at NAB is now 4.60% p.a. for eight months after a 0.15% cut.

That's now 20 basis points behind Westpac's top rate of 4.80% p.a. and 15 bps short of the 4.75% p.a. available at ANZ, both also on eight month terms.

However these banks are yet to cut, and all majors tend to follow each other on the term deposit merry-go-round.

NAB follows the lead of CommBank after Australia's biggest bank cut TD rates last week, also to a new top rate of 4.60% p.a.

The major banks have generally lagged behind smaller outfits on TD rates over the past couple of years, and there are still several products out there offering 5% p.a. or more.

NAB rate cuts were better news for consumers last week when it slashed fixed rate mortgages.

New NAB term deposit rates

Term length	Deposit size	Payment frequency	Interest rate (Change)
Three months	$5,000-$1,999,999	End of term	3.00% p.a. (-0.15)
Four months	$5,000-$1,999,999	End of term	3.15% p.a. (-0.10)
Five months	$5,000-$1,999,999	End of term	3.25% p.a. (-0.10)
Eight months	$5,000-$1,999,999	End of term	4.60% p.a. (-0.15)
Nine months	$5,000-$1,999,999	End of term	3.60% p.a. (-0.20)
Ten months	$5,000-$1,999,999	End of term	3.70% p.a. (-0.10)
Eleven months	$5,000-$1,999,999	End of term	3.70% p.a. (-0.10)
One year	$5,000-$1,999,999	End of term	4.20% p.a. (-0.20)
Three/Four/Five years	$5,000-$1,999,999	Annually	2.90% p.a. (-0.20)

RBA cut a lock?

NAB cutting deposit rates is unsurprising considering its economists are seeing a cut from the RBA next week.

Most major economists agree the most likely outcome of the February monetary policy meeting is a 25 basis point cut after the encouraging fourth-quarter inflation numbers.

The ASX rate tracker shows markets are also nearly unanimous with trading activity suggesting a 95% chance of a cut.

Lending indicators for Q4, the NAB Business Survey and the Westpac Consumer Confidence Survey will all be released before next Tuesday's meeting, but NAB's economics team considers this data "unlikely to shape [RBA] views".

However, there are still arguments for the RBA opting against bringing rates down in February.

The labour market is still strong with the unemployment rate below forecast, there still isn't concrete evidence labour productivity is picking up, and discretionary spending also increased at the end of 2024.

Although NAB economist Taylor Nugent expects the RBA will cut, he feels there is a case for a 10th consecutive hold.

"There is option value in waiting to better assess the trajectory of the labour market and the extent of the pick up in growth," he said.

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Want to earn a fixed interest rate on your cash? The table below features term deposits with some of the highest interest rates on the market for a six-month term.

Deposit amount

Compare

Provider	Interest rate	Interest frequency	Term	Automatic Rollover	Maturity Alert	Early Withdrawal Available	Minimum Deposit	Joint Application	Online Application	as ofFebruary 11, 2025

	4.85^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	1000	$product[$field["value"]]	$product[$field["value"]]	More details
FEATURED	Personal Term Deposits - 6 months Competitive interest rates on all term lengths Deposits covered up to $250,000 under Government's Finance Claims Scheme Loyalty bonus at renewal
Disclosure
FEATURED Personal Term Deposits - 6 months Competitive interest rates on all term lengths Deposits covered up to $250,000 under Government's Finance Claims Scheme Loyalty bonus at renewal More details Disclosure
	5.00^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	5000	$product[$field["value"]]	$product[$field["value"]]	More details
	Term Deposit - 6 months
Term Deposit - 6 months More details
	4.99^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	25000	$product[$field["value"]]	$product[$field["value"]]	More details
	Term Deposit - 6 months
Term Deposit - 6 months More details
	4.90^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	25000	$product[$field["value"]]	$product[$field["value"]]	More details
	Term Deposit ($25,000+) - 6 months
Term Deposit ($25,000+) - 6 months More details
	4.55^%_p.a.	At Maturity	6_months	$product[$field["value"]]	$product[$field["value"]]	$product[$field["value"]]	5000	$product[$field["value"]]	$product[$field["value"]]	More details
	Macquarie Bank Term Deposit (<$1,000,000) - 6 months
Macquarie Bank Term Deposit (<$1,000,000) - 6 months More details

Personal Term Deposits - 6 months

Product Features

Competitive interest rates on all term lengths
Deposits covered up to $250,000 under Government's Finance Claims Scheme
Loyalty bonus at renewal

Minimum deposit$1,000

4.85%Interest rate p.a.

6Term

More details

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Harry O'Sullivan

Harry joined Infochoice Group in November 2022 as a financial journalist. He's fascinated by economics, having completed a Bachelors Degree in 2021, and enjoys helping other people try to make sense of the financial system.

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NAB cuts term deposit rates

New NAB term deposit rates

RBA cut a lock?

Personal Term Deposits - 6 months

Personal Term Deposits - 6 months

Term Deposit - 6 months

Term Deposit - 6 months

Term Deposit - 6 months

Term Deposit - 6 months

Term Deposit ($25,000+) - 6 months

Term Deposit ($25,000+) - 6 months

Macquarie Bank Term Deposit (<$1,000,000) - 6 months

Macquarie Bank Term Deposit (<$1,000,000) - 6 months

Harry O'Sullivan