Compare Savings Accounts in Australia

A lot of people find themselves divided between investing their money in a savings account or a term deposit. Here are some key factors to consider if you are making a choice between the two:

Interest rates: With a term deposit your interest rate will be fixed for the term of your investment. Term deposits are available for 3 months to 5 years and traditionally offer better interest rates the longer the term. With a savings account your money is at call (which means you can withdraw it at any time) and your interest rate is a variable rate which means that it can change at any time. Generally savings accounts have higher introductory interest rates so these are a good option if you are planning on saving your money for a shorter duration of time (3 or 6 months).

Withdrawals: Term deposits have less flexibility as your interest rate and money are locked away for the fixed term. In the situation where you did have to make a withdrawal there would be penalties for breaking the TD before the set date. In a savings account, you have the option to withdraw money at any time. The downside is that you may not get the high interest rate for the month that you make more than the allowed number of withdrawals.

Bonus rates: With a savings account, you also have the option to earn higher bonus rates on monthly deposits, which is not possible with term deposits. But because savings accounts have variable interest rates, in case the Reserve Bank slashes the cash rate, your rate of interest can also drop.

We've covered off how to choose the best savings account in the market but to really make sure you're getting maximum value out of your money, it's also important to adopt good savings habits. Here are a few money-savvy tips from team Mozo to keep in mind:

Have a goal: Plan out a savings goal for yourself and think about setting up an automatic deduction from your bank account each month to go towards your savings. This automatic transfer can also help you maintain any requirements for minimum balance or monthly deposits. If you need help in figuring out how much you can save and how long it will take you, try Mozo's savings calculator. It will instantly show you what your balance will be and how long it will take to achieve your savings goal.

Draft a monthly budget: A key practice to achieve your goal is to plan a monthly household budget and then stick to it. Be realistic about your expenditure and share your strategy with your family and friends so they can encourage you to follow it through. You can use our budget calculator to understand where most of your money goes and where you can try to save.

Pay yourself first: One of the best tactics for growing your savings pile is to automate your savings. Set up a direct deposit into your account each pay day. Just like taxes that get taken out before you get to spend, if you automate your savings you won't even miss the money from your account.

Review your rates every 6 months. Today's best savings rate deal could become tomorrow's dud deal, so get into the habit of reviewing your account's interest rate against the market every 6 months, and switch if you're not getting the best deal.

Have a plan for your kids: It's never too early to get your kids into saving. Open a kids savings account which offers high interest and has no fees, then get your children involved in banking their pocket money into the account each week.

• the interest rate offered by your bank
• your interest payment schedule
• your savings balance
• deposits
• the length of time you keep the account active.

In order to earn more interest on your savings, make sure you’re getting a high interest rate (but be mindful there may be conditions like minimum deposit and withdrawal restrictions). 

For some help crunching the numbers, check out Mozo’s Savings Calculator and find out exactly how much you will make in interest with your savings plan. 

Yes, joint savings accounts can be opened for both long and short time periods. A joint savings account may be a convenient way for two people, say a married couple, to pool their finances and only face one set of banking fees rather than two. Combining savings can also mean that your balance is higher, meaning you make more in interest and can also make it easier to fulfil minimum requirements, like deposits, for bonus interest. 

But there are a few disadvantages to a joint account. The road can be bumpy, and you may face issues that may have you wishing you kept your money separate, like your partner misusing the account for themselves or even a relationship breakdown. So, if you are considering opening a joint savings account, make sure that you’re doing it with someone you trust first and foremost. Money can be a difficult thing to share with someone else, so weigh up the risk before you seal the deal. 

There are a whole bunch of savings accounts designed specifically for kids. Because kids don’t save in the same way as adults (as they generally don’t have access to as much money) there are some key features that you want to look for when choosing a kids savings account. These include: 

• no fees
• bonus interest rate
• no maximum monthly deposit
• child-friendly facilities (like special tools or online graphs) 

Keep in mind that some kids savings account have specific access options that may only apply to children over 12 (like ATM withdrawals). 

In some cases, it may be more suitable to open a regular savings account for your child as opposed to a kids savings account. If you choose this option, the account will likely be held in your name, meaning any interest made is included on your taxable income. Ultimately you’ll most likely be the one dealing with the finances on the account for a little while so do what suits your savings habits as well. 

Don’t forget that kids need a little extra help to stay motivated about their money. So check out our top tips for opening a kids savings account. 

Generally, opening a savings account is as easy as jumping onto your bank’s website, heading down to your local branch or even via Australia Post. In order to create the account you’ll be required to provide documentation to confirm your identity and residency, like a licence, medicare card or passport that has all your current details.  

Once the bank is sure that you are who you say you are, your account will become active and will be ready to accept deposits whenever you want.