Christmas comes early: Move Bank offers savers the highest bonus rate in over a decade at 5.70%

Key Points

• MOVE Bank takes the lead as bonus rate leader, with the highest ongoing bonus savings rate since October 2012, at 5.70% p.a..
• Since the 0.25% November rate hike, only 31 banks have increased their ongoing bonus savings rates, and not all have passed on the 0.25% in full.
• Mozo analysis shows 1 in 4 Australians (25%) have between $3,000 and $6,000 in an emergency savings fund, and close to 1 in 5 (18%) have between $9,000-$20,000.
• Switching from the average savings rate of 3.48% p.a. to the highest bonus savings rate of 5.70% p.a. could see you earn $1,391 more in interest over five years on a $10,000 balance. 

Today, MOVE bank has increased the savings rate on its Growth Saver account to 5.70% p.a., now offering savers the highest rate since October 2012.

“Banks have been quick to pass on the 425 basis points of cash rate hikes to mortgage holders since May 2022, but so far savers have been missing out,” said Rachel Wastell, Mozo finance expert.

“Only 31 banks have increased ongoing bonus savings rates in line with the RBA’s November rate rise, and in some of those cases, increases have been less than the 25 basis point hike.”

“An ongoing bonus rate of 5.70 percent hasn’t been seen for over a decade. For savers, Christmas has come early.”

The average savings rate of 3.48% p.a. is a whopping 2.22% lower than MOVE bank's new 5.70% p.a. ongoing bonus rate. Savers with account balances up to $25,000, who deposit $200 and make no withdrawals in a month will be able to claim this high interest rate.

Previous rate leader ME Bank’s bonus rate of 5.55% p.a. on the HomeME Savings account is also 2.07% lower than the average savings rate, however, the 5.55% p.a. rate is only available to savers who deposit $2,000 a month in a joint SpendME transaction account, and grow their savings balance each month.

“MOVE Bank is offering a very high interest rate to savers, and asking for little in return. Most high bonus rate savings accounts expect depositors to open joint transaction accounts to secure these high rates, but this rate is available to savers without the need to open another account.”

Earn interest on your emergency fund in 2024

Recent Mozo research showed that 1 in 4 Australians with an emergency savings fund (25%) currently have between $3,000 and $6,000 stashed away, and close to 1 in 5 (18%) have an emergency fund of $9,000-$20,000.

ASIC suggests having enough in your emergency fund to cover three months of expenses is a good target, so for those Australians who don’t have that much saved up, high interest savings accounts can help to grow that balance, as long as savers meet the conditions.

“This decade-high savings rate is a timely reminder to Australians planning their savings goals for 2024, to make sure they’re earning the highest interest they can on their rainy day funds,” Wastell said.

On a $10,000 balance, switching from the average savings rate of 3.48% p.a. to the highest bonus savings rate of 5.70% p.a. could see them earn $1,391 more in interest over five years.

And, for those Australians with $20,000 stashed in the bank, the interest earned by switching from the average rate to the new highest rate could earn them an extra $2,782 interest over that same time period.

“If you’ve got your savings stashed in an account that’s paying less than 5 percent, you could be missing out on earning hundreds of dollars in potential interest” Wastell observed.

“Just make sure that you can meet the conditions attached to the bonus rate on offer, otherwise you might end up earning a much lower base rate of interest.” 

This is not the first time MOVE Bank has been recognised by Mozo for its generosity to savers, winning a coveted Mozo Experts Choice Awards for their high interest savings account earlier this year.

High interest rate savings accounts