Micro savings subsidised by NAB

National Australia Bank has added to its suite of microfinance products with the launch yesterday of a savings plan that offers a matching contribution from the bank.

The AddsUp Savings Plan, which is being offered in partnership with GoodShepherd Youth & Family Service, provides up to $500 in matching payments from NAB.

Once the account holder has saved $300 they are eligible for the matching payment. At the anniversary of the initial deposit NAB will match whatever is saved, up to $500, with a one-off payment.

NAB head of community finance and development, Richard Peters, said the account was designed for people who have used the bank's No Interest Loan Scheme or StepUP loan and are able to continue making payments.

Peters said there were cases of people paying off their loans and wanting a savings program.

Peters said the bank expected to pay matching contributions of between $500,000 and $1 million over the next year.

He said the No Interest Loan Scheme would provide finance to 5500 borrowers this year.

Since launching its first microfinance product six years ago NAB has developed programs with a dozen partners.