Savings accounts offer an easy way for people to keep their money stored away safely, while also growing the amount over time through interest. With interest rates at record lows right now, finding the highest rate for your savings is important. Mozo can help! We compare more than 200 savings accounts from 60 banks to help you find the right home for your money. Why not try our comparison tool below to find a savings account to suit your needs.
Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Everyday or Glide transaction accounts.
Winner of a Mozo Experts Choice Award 2021 in the Regular Saver category. No monthly account fees and no minimum balance requirements.
Winner of a Mozo Experts Choice Award 2021 in the Regular Saver category. No monthly account fees and no minimum balance requirements.
Read our Mozo Review to learn more about the Bonus Saver Account
Minimum deposit of $200 and no withdrawals in the month.
Interest is calculated daily and paid monthly. Automatic payment feature. No minimum opening balance needed.
Interest is calculated daily and paid monthly. Automatic payment feature. No minimum opening balance needed.
Read our Mozo Review to learn more about the Hero Saver
Bonus rate for first 4 months, reverting to 0.15% rate after
$0 monthly account fee. Link to any Australian bank account.
$0 monthly account fee. Link to any Australian bank account.
Read our Mozo Review to learn more about the Serious Saver
Bonus rate for the first 4 months from account opening
No account keeping fees. No minimum balance required. Unlimited phone and internet transactions.
No account keeping fees. No minimum balance required. Unlimited phone and internet transactions.
Read our Mozo Review to learn more about the Online Saver
Increase balance by at least $300 in the month
No upfront or ongoing fees. Unlimited free transactions. Great for regular contributions.
No upfront or ongoing fees. Unlimited free transactions. Great for regular contributions.
Read our Mozo Review to learn more about the Flexi Saver
Ongoing bonus rate applied if in the previous month $1,000 or more is credited to the linked Day2Day Plus account and 5 eligible transactions are made by the linked account.
Earn 1.05% p.a. Bonus Interest in the following month on your Fast Track Saver Account balance. Earn Bonus Interest on your savings, with no minimum balance required.
Earn 1.05% p.a. Bonus Interest in the following month on your Fast Track Saver Account balance. Earn Bonus Interest on your savings, with no minimum balance required.
Read our Mozo Review to learn more about the Fast Track Saver Account
^See information about the Mozo Experts Choice Savings accounts Awards
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Written by: Tom Watson, Finance journalist, 1 April 2021
With the official cash rate sitting steady at an historic low 0.10% and unlikely to move higher anytime soon, the environment for Australians looking for a decent return on their savings remains tough. The general rate trend so far in 2021 has followed a downward trajectory, with plenty of banks cutting interest rates on their respective savings accounts.
However, the significant gap between the higher and lower savings account rates on the market might still provide strong motivation for savers not content to accept a lower return on their savings balance.
The major takeaway if you’re shopping around for an interest rate at the higher end of the market is that you’ll need to look beyond the major banks and more towards online and challenger banks. The exception here is the Westpac Life Account which is offering an ongoing bonus rate of 3.00% to 18-29 year olds.
For savers happy to meet monthly requirements (e.g. regular deposits), a savings account with an ongoing bonus rate could be one of the more rewarding places to park your savings. The likes of 86 400, AMP, ING, ME, MyState Bank and UBank have some of the most competitive rates on offer at present in this category - all of which are above the 1.00% mark.
Meanwhile, savers with a short term goal in mind may want to look at an account with an introductory rate. Rabobank (1.50%) and IMB Bank (1.20%) currently have the highest intro rates in our database, though bear in mind these rates only apply for four months.
Here are the current rate leaders in the Mozo database for three different types of savings accounts: those with an ongoing bonus rate, an introductory rate and a base rate.
Ongoing Bonus: 1.35% with the ING Savings Maximiser. In order to get the maximum rate savers will need to meet a number of monthly requirements though, including a minimum deposit of $1,000, at least 5 debit card transactions and they’ll need to grow the account balance in the month.
Introductory: 1.50% with the Rabobank High Interest Savings Account. The 1.50% rate is only valid for the first four months though, after which it will fall to an ongoing rate of 0.25%.
Base: 1.00% with the Volt Savings Account. This rate is unconditional, meaning there are no monthly requirements in order to earn it.
Saving money is hard enough so you want to make sure you're earning a decent interest rate and avoiding unnecessary fees. This is where we come in. Mozo can help you make the most out of your hard-earned money by finding the right savings account match for your needs.
But finding an account that's right for you depends on different factors such as whether you have a short or long term savings goal, whether you can make minimum monthly deposits to the account, and whether you would consider bundling your savings account and bank account together to access a higher interest rate.
We can help you weigh up all these factors as well as analyse the latest savings interest rates and fees across all the main financial institutions in Mozo's database. So whether you're looking for online saver accounts, kids accounts or a high interest savings account to maximise your savings, our nifty comparison tools let you compare accounts conveniently according to price as well as features.
You can also read savings account reviews from real customers around Australia to get the inside story on everything from convenience to customer service.
This page is all about personal saving. If you are after information on business saving, head over to our business banking section.
To help you understand the different types of accounts available, and their key differences, here is a list of popular savings accounts:
Online saver accounts: In a world that's moving from gadget to gadget, online saver accounts are ideal for technology-savvy savers. Online banking cuts out the hassle of visiting a branch and lets you access your account on the go. Lower bank overheads also mean higher interest rates for you and lower fees (in fact most online savings accounts have no account fees).
Most banks also have customised banking apps that let you access your account on your smartphone. In fact, some financial providers also allow you to use their banking app on your smartwatch so you can check your balance with a flick of the wrist.
Bonus saver accounts: These accounts offer a bonus interest rate if you fulfil certain criteria such as meeting monthly deposit or withdrawal requirements. Some of the hottest savings rates around are only available if you bundle your bank account and savings account together with the same provider.
While these conditions can seem limiting, they can also reinforce your savings habit. Knowing that you'll lose that top interest rate if you access your money is a great incentive to keep your savings on track.
Intro rate saver: As an incentive for switching accounts banks often offer bonus introductory rates for a period of 3 to 6 months from opening an account with them. Intro rates are usually quite high, but once the introductory period ends the interest goes back to the standard variable rate for the account. These accounts are ideal for people who are looking at a short term saving goal or are happy to switch banks every couple of months to get the highest rates in the market.
Long term savings account: If you are planning to save money over a sustained period of time, and don't want to switch accounts frequently, you should go for an account that offers the highest standard rate of interest.
Kids savings accounts: Introduce your children to the idea of banking and saving money with a kids savings account. These accounts usually don't have account fees and offer a competitive interest rate but often have conditions like limited or no withdrawals to get the highest rate.
While it may seem obvious that an account offering the highest interest rate would be the more ideal option, it might not always be that simple. Here are other important features that you should keep in mind while comparing the different savings accounts available:
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 right savings account for you, 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 payday. 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 top savings account 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.
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:
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.
I want to put my money where my values are, and Bank Australia lets me do this, as a bank that only invests in ethical options.
Read full reviewI want to put my money where my values are, and Bank Australia lets me do this, as a bank that only invests in ethical options.
If there are any problems they get it sorted within one business day. I'm always kept up to date with new changes.
Read full reviewIf there are any problems they get it sorted within one business day. I'm always kept up to date with new changes.
I had a Westpac rewards saver. During Covid the bonus for saving was less than for keeping the account. In effect I was losing money and every time I wanted to take money out it cost $5. Customer service was good and phone lines were open at most times. The local branch I banked at closed so I had to travel further to a branch. I ended up closing the account and putting savings into superannuation.
Read full reviewI had a Westpac rewards saver. During Covid the bonus for saving was less than for keeping the account. In effect I was losing money and every time I wanted to take money out it cost $5. Customer service was good and phone lines were open at most times. The local branch I banked at closed so I had to travel further to a branch. I ended up closing the account and putting savings into superannuation.
