Home loan rates are up, but so are savings accounts! Is it time to switch?
Whenever the Reserve Bank of Australia (RBA) lifts the official cash rate, lenders and banks take it as a cue to hike their variable interest home loans, too. But while they’re normally a little slower to do the same with savings accounts, we’re finally beginning to see some welcome rises.
So if you’re stressing over the cost of housing finance and looking for ways to save, here are some amazing banking options to check out.
Term deposits
While no investment is 100% risk-free, term deposits make a pretty safe bet. Offered by most Australian banks and credit unions, a term deposit is basically a high interest savings account you agree not to touch or make withdrawals on for an agreed period of time. Afterwards, you get your money back with heckin’ high interest (unless the term rolls over – pay attention to the fine print!)
How does it work? Once you’ve found a term deposit offer you like, simply tuck a minimum sum of money away in the deposit for a locked-in term (usually between one month to five years), then watch it accrue interest at a fixed rate. This interest can be paid monthly or at the end of your term when your deposit “matures”. Typically the longer the term, the better the interest rate.
Like any financial product, term deposits come with plenty of pros and cons, but if you have a nest egg you don’t mind not touching for a while, they can be a great investment opportunity.
Looking for the best term deposits? Check out the 2022 Mozo Experts Choice Term Deposits Awards.
For the highest rates in our database, head over to our monthly term deposit recap.
Offset accounts
An offset account is essentially a bank account linked to your mortgage. You can deposit your monthly salary, make debit transactions, and accrue interest like a normal savings and transaction account, but this one has a pretty useful perk. Any amount of money you have in your offset account cancels out a percentage of your mortgage and reduces the amount of interest you have to pay.
How does it work? Say you have $200,000 left on your mortgage and $50,000 in an 100% offset account. The bank will subtract the $50k from your mortgage and only charge you interest on the remaining $150,000. While it doesn’t save you from eventually repaying the other $50k, it does save you interest, which can really add up over long periods of time!
But what if your lender doesn’t offer an offset with your home loan? No worries: browse offers that do. If you find an option that works better for your needs, it could be time to refinance.
Looking for the best offset account home loans? Check out the offset category for the 2022 Mozo Experts Choice Home Loan Awards.
Youth saver accounts
Maybe owning a house isn’t really on the cards at the moment because you’re still in school, learning to drive, or just being young and cute. Well good news: youth savings accounts often offer you extremely attractive interest rates. Huzzah!
How does it work? If you’re under 18, most banks will offer you a version of a ‘youth saver’ account with little to no provider fees and high bonus interest rates, provided you meet some monthly conditions (like a minimum deposit). Some banks will even offer these kinds of accounts to under 30s.
However, not every account out there is competitive, and some come with sneaky hidden catches like reverting to a lower interest rate after a year or even having crummier rates than regular savers. Be sure to read the terms and conditions when comparing options out there!
High interest savings accounts
These guys are the cream of the crop, worthy of a chef’s kiss of the highest order. High interest saving accounts prioritise interest rates above everything else, often in the form of bonus interest you can accrue over long periods of time given you meet certain conditions, like a minimum monthly deposit or transaction amount.
How does it work? Depends on the account. Whenever choosing a high interest savings account, make sure to pay attention to not just the interest, but the terms and conditions, any hidden fees, and other perks you might want like ethical or green investment options.
Neobanks
As their name suggests, neobanks can see the matrix. Okay, not really, but they’re still pretty future-minded! A neobank is simply a next generation banking platform with a digital twist.
How does it work? Neobanks are often online-only fintech websites or smartphone apps that offer competitive interest rates and exciting smart tool features, like AI budget tracking or open banking. A neobank isn’t exactly the same as a smart money app, nor is it the same as your bank’s mobile app, because the bank itself is branchless, new, and for the purposes of storing and managing your money.
Not sure if it’s right for you? We’ve weighed the pros and cons of neobanks in a helpful guide.
Found a better deal? Here’s how to switch bank accounts
Did you know you’re more likely to break up with your partner than your bank? It’s easy to settle into a routine, because let’s face it: finding a good deal can take a bit of work. But it’s actually surprisingly simple to switch to a new bank and can even be done in 4 easy steps.
- Compare bank accounts.
- Open a new bank account.
- Change your regular payments.
- Close your old account.
Voila! And best of all, many banks will happily put in the leg work for your business. So be sure to compare what’s on the market and see if you can get a better deal. After all, you’re worth it.
Head to our banking hub for more guides. Subscribe to our Moneyzone weekly newsletter for more cost crunching tips and tricks.
Compare high interest savings accounts
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Savings Account
5.35% p.a. (for $0 to $250,000)
4.75% p.a.(for $0 to $1,000,000)
Yes up to $250,000
Bonus variable rate is available for the first 4 months.
Enjoy a high interest savings account with no account keeping fees to pay. Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace. Multiple 2024 Mozo Experts Choice Award winner.
CompareCompareSavings Account
Enjoy a high interest savings account with no account keeping fees to pay. Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace. Multiple 2024 Mozo Experts Choice Award winner.
- Maximum rate
- 5.35% p.a. (for $0 to $250,000)
- standard interest rate
- 4.75% p.a.(for $0 to $1,000,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus variable rate is available for the first 4 months.
- Access
- BPay, Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must have a Macquarie Transaction Account to link with.
Read our Mozo Review to learn more about the Macquarie Savings Account
-
Mozo experts choice awards won:
- Kick Start Savings - 2024
High Interest Savings Account
5.75% p.a. (for $0 to $250,001)
4.40% p.a.(for $0 to $250,001)
Yes up to $250,000
Bonus rate for the first 4 months from account opening
Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account. No Account keeping fees. No minimum balance. Support Aussie farmers with every dollar you save.
CompareCompareHigh Interest Savings Account
Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account. No Account keeping fees. No minimum balance. Support Aussie farmers with every dollar you save.
- Maximum rate
- 5.75% p.a. (for $0 to $250,001)
- standard interest rate
- 4.40% p.a.(for $0 to $250,001)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate for the first 4 months from account opening, reverting to standard variable rate. Rate shown is for Personal customers and is subject to change. Different rates apply to Business/SMSF customers.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read our Mozo Review to learn more about the Rabobank High Interest Savings Account
-
Mozo experts choice awards won:
- High Interest Savings - 2024
Savings Maximiser
5.50% p.a. (for $0 to $100,000)
0.55% p.a.(for $0 and over)
Yes up to $250,000
Deposit $1,000 into a personal ING account, make 5 eligible transactions with a linked Orange Everyday account and grow the balance each month.
Great variable rate every month when you grow your balance each month in addition to other eligibility criteria. No ING fees to pay. Save even more with ING Everyday Round Up. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
CompareCompareSavings Maximiser
Great variable rate every month when you grow your balance each month in addition to other eligibility criteria. No ING fees to pay. Save even more with ING Everyday Round Up. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
- Maximum rate
- 5.50% p.a. (for $0 to $100,000)
- standard interest rate
- 0.55% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- For customers who deposit $1000 from an external source into a personal ING account (excluding Orange One and Living Super), make 5 eligible transactions and grow their nominated Savings Maximiser account each month so there is more in the account at the end of the month than there was at the start of each month (excluding interest). The total bonus interest rate is available on balances up to $100,000 on one Savings Maximiser the next month after meeting eligibility.
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must be linked to an Orange Everyday transaction account to receive the bonus rate. Where multiple Savings Maximiser Accounts are held, the bonus rate is only applied to one nominated account.
Read our Mozo Review to learn more about the ING Savings Maximiser
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MoneyMAX Account
No Current Offer
4.75% p.a.(for $1 and over)
Yes up to $250,000
Unlimited access 24/7 via Banking App, Phone & Internet Banking. Interest is calculated daily and paid monthly. No transaction fees or monthly service fees. No minimum balance or withdrawal restrictions. Online access only.
CompareCompareMoneyMAX Account
Unlimited access 24/7 via Banking App, Phone & Internet Banking. Interest is calculated daily and paid monthly. No transaction fees or monthly service fees. No minimum balance or withdrawal restrictions. Online access only.
- Maximum rate
- No Current Offer
- standard interest rate
- 4.75% p.a.(for $1 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- n/a
- Access
- BPay, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Branch access for deposits only.
Read our Mozo Review to learn more about the Unity Bank MoneyMAX Account
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Savings Accelerator
3.55% p.a. (for $0 to $50,000)
2.85% p.a.(for $0 to $50,000)
Yes up to $250,000
New customers receive an introductory bonus 0.70% p.a. variable kick starter rate for the first 4 months on balances up to $500,000.
Enjoy the flexibility to access your funds with no monthly deposit requirements or lock-in terms. No ING fees to pay. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
CompareCompareSavings Accelerator
Enjoy the flexibility to access your funds with no monthly deposit requirements or lock-in terms. No ING fees to pay. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
- Maximum rate
- 3.55% p.a. (for $0 to $50,000)
- standard interest rate
- 2.85% p.a.(for $0 to $50,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- New ING personal savings customers receive an introductory bonus 0.70% p.a. variable kick starter rate for the first 4 months on balances up to $500,000. Reverts to variable ongoing rate.
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read our Mozo Review to learn more about the ING Savings Accelerator
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^See information about the Mozo Experts Choice Savings Account Awards
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