Gone are the days where savings had a one-suits-all approach and customers needed to be content with what the banks had to offer. Today, banks offer a number of products to suit various needs and customers have access to a wide variety of savings accounts and fixed deposits.
Interest rates are handed out like hotcakes as banks compete for the largest customer base. This is because the funding provided by savings especially fixed deposits, provide banks with the necessary capital to lend to customers again. National Australia Bank Savings accounts provide customers with the variety they need. This review takes a look to see whether they perform well among their peers.
Read here for a full review on one of the most comprehensive savings offerings on the planet.
About National Australia Bank
A child of the eighties, this bank enjoys the mindset of a modern banking system. Instead of only embracing the archaic practices of traditional banks, National Australia Bank has a healthy understanding of the best of both worlds. The result is a banking system that provides products and services for multiple generations. Currently, the bank is punting a cash free society where the need for cold hard cash becomes virtually obsolete. It is also looking to increase its footprint and reputation with its customers, as it awaits the outcome of the political tension in the country. Ratings agencies have threatened to downgrade the financial ratings until stability is restored. This means that all the financial institutions are hoping for a peaceful resolution to political differences.
Not All Savings Accounts Are Alike
Choosing a savings accounts is very similar to choosing a good jacket. There are customers that enter a department store and just choose the first thing that catches their fancy. Then there are those who want only the cheapest, most convenient product. Finally, there are customers who take a little extra time to make a decision on the right fit, cut, and price. They also decide whether they want a jacket for everyday use, or whether it’s only suitable for certain seasons.
Choose a Savings Account that Offers the Right Term
Term plays a very important role in savings, as customers have different needs to consider. For instance, customers who need to save up for their emergency funds may want to keep the funds flexible. There are also options for customers who don’t want to have access to the funds for a long time. Both these needs are covered when customers choose the term that suits their need best.
Flexibility and Rate of Return Often Go Hand in Hand
Customers who wish to have their funds ready and available, often have to relinquish some of the rate benefits. This is because funds that are fixed for a period of time allow the banks to make a few adjustments to their rates. However, this is not a hard and fast rule as some of the 7-day accounts also happen to have pretty terrific rates that would take some fixed deposits a year or two to beat.
Banks that offer customers savings account that functions like a current account, often provide them with a debit or ATM card, and a list of fees that go along with it. There is no notice period on the account and customers can do the majority of transactions through it. Those who perform many transactions and are billed per transaction might find a bundled current account to be a cheaper option.
Savings accounts are the first step to a wealth portfolio, and open the door for other products as well. Once customers have a surplus over and above their emergency savings, they can consider investments and other forms of wealth building.
National Australia Bank Savings Accounts Product Offerings
NAB Reward Saver
Customers who find it difficult to save consistently will find this account to be the ideal solution. It rewards customers for their regular savings. Furthermore, there are no transaction or monthly fees.
- This account provides customers with bonus interest for every month they make a deposit and no withdrawal. Customers receive this bonus as long as the deposit takes place on or before the second last banking day of the month.
- Also, the interest is calculated on a daily balance.
- Finally, customers don’t have to put down a minimum deposit.
This account is suitable for those who require flexible access to their savings. Furthermore, customers are not required to open the account with a minimum balance.
- Customers enjoy a variable interest rate with this account.
- Also, the interest is calculated on a daily balance and every dollar is taken into account.
- For the first 4 months of the first NAB iSaver account, customers earn a fixed bonus interest rate. This is for balances up to $20 million.
- Finally, there are no transaction or monthly account fees charged on the account.
NAB Cash Manager
This is a suitable account for those who wish to manage their investment cash flow, including SMSF. Furthermore, customers have flexible access to their money.
- Customers enjoy competitive interest on their money. Also, the interest is charged on daily balances.
- There are no monthly or transaction fees on the account.
- Finally, customers are not required to open the account with a minimum balance.
NAB Term Deposit
Customers who don’t want to have access to their funds for a period of time should consider a term deposit. Furthermore, the account allows them to earn competitive interest rates.
- The term deposit enjoys a fixed rate for the duration of the term. This interest is paid monthly, quarterly, or at maturity.
- Furthermore, customers can open term deposit accounts of up to $250,000 online. Higher amounts are opened in the branch.
- A term deposit requires a minimum balance of $5,000.
- There are no monthly account or interest fees charged on this account.
- Customers can choose any terms from 30 days to 5 years.
- Finally, customers can keep track of their term deposit through the NAB Internet Banking or Mobile App.
Customers who prefer a transaction account should consider the range offered by National Australia Bank.
What We Like About National Bank of Australia Savings Accounts
There are a few different options that will speak to the various needs of customers. Whether customers wish to go with the term options or those that provide immediate access
Best of all is the fact that this bank is very keen to promote their accounts to customers without costing them an arm and a leg. This allows them to keep costs low across the board.
Finally, these accounts provide customers with the means to build up their emergency savings reserves. The accounts are easy to open and don’t require large cash deposits, which makes it attractive to lower income clients as well. These accounts, therefore, encourage a savings culture.
What We Don’t Like About National Bank of Australia Savings Accounts
This seems to become the song of choice for this bank and once again, lack of choices makes its appearance. There are a number of reasons why we would like more variety in the savings options, and the opportunity for a number of different clients to meet their financial needs is just one of them.
If we didn’t pull the product through from the deposits section, there would have been even fewer options to choose from.
Critical Reviews Rating National Australia Bank Savings Accounts – 7 of 10
Once again National Australia Bank has a terrific platform where they could launch a number of fascinating products. The sad result is a tepid mix of accounts that don’t really pop out. Sure, the accounts offer some good rates and terms, however, there is nothing that will get me off my seat to rush into the bank to open it. In fact, I’m not even that excited to go through the online process. The accounts are just that underwhelming.
What we find a little sad is the amount of effort and product research that goes into one of the most impressive credit card lines on the planet. The sad truth is that the credit card giant is the same institution that seems to have added the savings accounts into the mix as an afterthought.
A Slight Reconsideration
However, we decided not to take off too many points because when you take the time to investigate these accounts a little further, they are quite special. One account has the ability to wear many different caps, and this we appreciate. There is also the fact that customers aren’t bombarded with massive demands for opening deposits, which make the accounts far more accessible to a larger portion of the population.
Finally, those who prefer the simple and straightforward will love this range and anything else this bank has to offer. What we hope to see in future, is that a little more excitement goes into the savings accounts in order to encourage customers to save. Unfortunately, the credit-heavy focus leads us to believe that the money currently enjoys the biggest focus, not necessarily the customer. We’re hoping National Australia Bank will redeem themselves and prove us wrong.
A bank that also offers some neat savings products, is National Bank of Abu Dhabi.