NAB incentive doubles savings of low-income Aussies

Save and we will match that dollar for dollar, is NAB's message to encourage savings among lower-income Australians.

National Australia Bank or NAB provides an incentive for people to save $300 in their AddsUp Savings Plan, which is provided via NAB’s fee-free Concession Card Account. Once this goal is reached, the account holder becomes eligible to have their savings matched, dollar for dollar, by NAB.

NAB will match AddsUp Savings Plans once a year, to the total annual value of $500 per account. For example, a person who saves $400 in their account will receive an additional $400 from NAB, taking their savings balance to $800.

The matched savings program is available to people who have already accessed and repaid either a No Interest Loan Scheme or low interest loan called Step Up.

"AddsUP has been developed to help Australians living on low-incomes develop financial independence through savings," said Richard Peters, Head of NAB’s Community Finance & Development team.

"We know that 95 percent of NILS and StepUP clients repay their loans in full; and that means people have built budgeting and repayment skills that can be applied to a savings product.

Michael Yore, Executive Director, Good Shepherd Youth & Family Service added that AddsUp is an opportunity for people to save for the things that matter to them and be supported in the process.

"As we roll out the program in the coming year, across Australia, we expect the AddsUp Savings Plan will be available to over 1200 people and their families," he added.

NAB’s commitment includes a pledge of $130 million in capital to support lending to low-income groups. Within this pledge, NAB has allocated $15 million to expand the NILS network.

An extension of its microfinance program, AddsUp Savings Plan was launched in partnership with the Good Shepherd Youth & Family Service at the Echuca Indigenous Community in Victoria. It will be made available to over 30 community groups over the next 12 months.

Over the next three months, AddsUP will be implemented in Victoria, Northern Territory, New South Wales, South Australia and Queensland.