This week in banking news - savings sadness, RBA aftermath, energy and a frugal festive season

- The bad energy habit that 22% of Aussies are guilty of.
- Have business loans been affected by the October RBA cut?
- Find out just how low the average ongoing savings rate has dropped.
- Why Aussies are struggling towards payday.
- Are you dreaming of a frugal festive season?
All in this week’s banking recap.
Have business loans been affected by the October RBA cut?
With the Reserve Bank of Australia deciding not to cut in November, interest rates have arguably had a bit of breathing space to settle down. And with that, the impact on business loans has become clearer.
Excluding a handful of lenders, almost every bank has decided to pass on a portion of the cash rate cuts from June, July and October to their business loans. In fact, according to the Mozo database, the average residentially secured, variable rate business loan has dropped 0.40% in the past five months, from 5.52% to 5.12%.
22% of Aussies are guilty of this bad energy habit, research finds
According to the recently released Mitsubishi Electric Australian Home Trends Report, 22% of Australians are guilty of turning the aircon on with the windows still open, while 20% admitted to leaving it on when no one was home.
Mozo’s energy expert Nathan Warne named habits such as these as the reason why your energy bill may wind up being bigger than expected this summer. Warne suggested keeping on top of what appliances you’re using and when, to make sure you don’t have any nasty surprises when it comes to billing time.
Average ongoing savings rate at a record low
For the first time since Mozo started tracking rates back in January 2012, the average ongoing savings rate has dropped below 1.00%. This figure is based on the combined data from 188 different personal savings accounts with an ongoing rate or ongoing bonus rate.
Five years ago, in November 2014, the average ongoing savings rate in the Mozo database was almost triple what it is today, at 2.53%. So it’s bad news for savings accounts, with possibly even more grimness to come as experts predict future cuts from the Reserve Bank of Australia either later this year or in early 2020.
Aussies struggling to make it to payday, research finds
With interest rates for savings accounts at an all time low, it’s no wonder more and more Aussies are struggling to save. In fact, according to recent research conducted by Mozo, 1 in 2 Australians save less than $200 a month, with 16% of those aged from 25 to 34 admitting to running out of money altogether, before payday.
As Mozo spokesperson Gemma Rasmussen suggested, increased costs of living and stagnant wage growth has most likely played a big part in Aussies finding it hard to get ahead of the game.
Reports find Aussies more frugal than festive this year
With this in mind, it shouldn't come as any surprise that Australians are planning to spend less this Christmas. Indeed, according to a report from St George Bank, 43% of Aussies are setting a budget for spending on family and friends this festive season.
ING also found that more and more Australians are leaning towards a greener Christmas, with 57% of the country saying that they would opt for more sustainable presents this year. This comes after an approximate 10 million unwanted gifts were given last Christmas.
Now if you are planning to save money and have a more eco-friendly Christmas this year, why not check out the savings accounts below, to find the best interest rate for your hard earned stash.
Compare savings accounts - rates updated daily
Save Account
Maximum rate
standard interest rate
Govt Deposit Guarantee
1.85% p.a. (for $0 to $250,000)0.10% p.a.(for $0 and over)Yes up to $250,000Deposit at least $200 to either Spend or Save account from an external source each month.
Earn up to 1.85% p.a in interest. No monthly fee to pay. Split your money in up to 10 Save accounts. Track your progress on each of your save accounts. Instant access to cash via PayID and Osko. Deposits guaranteed up to $250k per customer.
Save Account
Earn up to 1.85% p.a in interest. No monthly fee to pay. Split your money in up to 10 Save accounts. Track your progress on each of your save accounts. Instant access to cash via PayID and Osko. Deposits guaranteed up to $250k per customer.
- account fee per month
- $0.00
- Maximum rate conditions
- Deposit at least $200 to either Spend or Save account from an external source each month.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Bank and saving account only accessible through iOS or Android app.
Read our Mozo Review to learn more about the Save Account
Future Saver Account - 14 to 35 years
Maximum rate
standard interest rate
Govt Deposit Guarantee
3.00% p.a. (for $0 to $50,001)0.05% p.a.(for $0 and over)Yes up to $250,000Transfer a minimum of $1,000 into your linked Everyday Account and make 5 eligible transactions. Bonus interest criteria waived for account holders 14-17 years of age.
Enjoy bonus interest each month when you meet the criteria. No monthly fees. Open an account in minutes. Open up to 9 accounts. Transaction round-up for faster saving. Personalised insights and goal tracking. For customers aged 14-35 years.
Future Saver Account - 14 to 35 years
Enjoy bonus interest each month when you meet the criteria. No monthly fees. Open an account in minutes. Open up to 9 accounts. Transaction round-up for faster saving. Personalised insights and goal tracking. For customers aged 14-35 years.
- account fee per month
- $0.00
- Maximum rate conditions
- Ongoing bonus rate applied if in the previous month $1,000 or more is credited to the linked Everyday Account and 5 eligible transactions are made by the linked account. Bonus interest criteria waived for account holders 14-17 years of age.
- Access
- BPay, Branch access, Internet banking
- Minimum balance
- $1.00
- Other restrictions
- -
Read our Mozo Review to learn more about the Future Saver Account - 14 to 35 years
Youth eSaver
Maximum rate
standard interest rate
Govt Deposit Guarantee
No Current Offer3.25% p.a.(for $0 to $5,001)Yes up to $250,0003.25% p.a. interest rate on balances up to $5,000; 1.00% p.a. interest rate on balance over $5,000. $0 monthly account fees to pay. Add and withdraw your savings without affecting your interest rate. Comes with an Everyday Youth Account. Available to applicants aged 10 to 17 only.
Youth eSaver
3.25% p.a. interest rate on balances up to $5,000; 1.00% p.a. interest rate on balance over $5,000. $0 monthly account fees to pay. Add and withdraw your savings without affecting your interest rate. Comes with an Everyday Youth Account. Available to applicants aged 10 to 17 only.
- account fee per month
- $0.00
- Maximum rate conditions
- n/a
- Access
- BPay, Branch access, Phone banking, Internet banking
- Minimum balance
- $1.00
- Other restrictions
- Child must be aged 10-17 and sole account owner. Max 1 Youth eSaver account per eligible child. Must link to a transaction account.
Read our Mozo Review to learn more about the Youth eSaver
High Interest Savings Account
Maximum rate
standard interest rate
Govt Deposit Guarantee
2.10% p.a. (for $0 to $250,001)1.00% p.a.(for $0 to $250,001)Yes up to $250,000Bonus rate for the first 4 months from account opening
Kick start your savings with the 4 month introductory variable rate. No fees, no minimum balance, no minimum monthly deposit and no minimum term.
High Interest Savings Account
Kick start your savings with the 4 month introductory variable rate. No fees, no minimum balance, no minimum monthly deposit and no minimum term.
- 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 High Interest Savings Account
Boost Saver with Go Account
Lock Saver Feature
Maximum rate
standard interest rate
Govt Deposit Guarantee
2.00% p.a. (for $0 to $250,000)0.05% p.a.(for $0 and over)Yes up to $250,000Bonus rate of 2.00%. Deposit $2,000 each month, make 5 eligible payments from your Go Account and enable the Lock Saver feature. If you are between 18 and 25 deposit $1,000. 32 days notice for withdrawal and T&C's apply.
Enjoy a high interest savings account bundled with an everyday spending account. No monthly fees. And new customers can get a welcome bonus of 5,000 bonus Virgin Money Points (ends 31/8/22. Offer criteria & T&Cs apply).
Boost Saver with Go Account
Enjoy a high interest savings account bundled with an everyday spending account. No monthly fees. And new customers can get a welcome bonus of 5,000 bonus Virgin Money Points (ends 31/8/22. Offer criteria & T&Cs apply).
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus interest 2.00% is made up of the Base rate of 0.05%, Bonus rate of 1.45% and Notice Interest Rate of 0.50%. It only applies when you deposit $2,000 into your Go Account and make 5 debit card purchases, direct debit or BPAY payments in the previous month and enable the Lock Saver feature. If you are between 18 and 25 you need to also deposit $1,000. 32 days notice for withdrawal and T&Cs apply.
- Access
- BPay, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Bank and savings account only accessible through iOS or Android app.
Read our Mozo Review to learn more about the Boost Saver with Go Account
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.