86 400 and Up's rates the latest casualties of savings account slump
Compare high interest savings accounts - last updated 20 September 2021
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Mozo experts choice awards won:
- Regular Saver - 2021
Bonus Saver Account
Maximum rate
standard interest rate
Govt Deposit Guarantee
1.10% p.a. (for $0 to $250,000)0.05% p.a.(for $0 and over)Yes up to $250,000Bonus 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.
CompareCompareBonus Saver Account
Winner of a Mozo Experts Choice Award 2021 in the Regular Saver category. No monthly account fees and no minimum balance requirements.
- Maximum rate
- 1.10% p.a. (for $0 to $250,000)
- standard interest rate
- 0.05% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- 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.
- Access
- BPay, 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 Bonus Saver Account
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Boost Saver with Go Account
Maximum rate
standard interest rate
Govt Deposit Guarantee
1.50% p.a. (for $0 to $250,000)0.10% p.a.(for $0 and over)Yes up to $250,000Intro bonus rate of 1.50% for first 3 months, reverting to 1.20% after. Deposit $2,000 each month and make 5 eligible payments from your Go Account. If you are between 18 and 25 deposit $1,000.
Enjoy a savings account bundled with a spending account. No monthly fees. New customers can earn up to 5000 bonus Virgin Money points on purchases (conditions apply). Benefit together with a joint account
CompareCompareBoost Saver with Go Account
Enjoy a savings account bundled with a spending account. No monthly fees. New customers can earn up to 5000 bonus Virgin Money points on purchases (conditions apply). Benefit together with a joint account
- Maximum rate
- 1.50% p.a. (for $0 to $250,000)
- standard interest rate
- 0.10% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Intro bonus rate of 1.50% for first 3 months, reverting to 1.20% after. Bonus interest 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. If you are between 18 and 25 you need to deposit $1,000 and fulfil the other criteria.
- Access
- BPay, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Bank and savings account only accessible through iOS or Android app. Bonus introductory interest rate of 1.50% available for accounts opened by 30 Nov 2021.
Read our Mozo Review to learn more about the Boost Saver with Go Account
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Online Saver
Maximum rate
standard interest rate
Govt Deposit Guarantee
1.10% p.a. (for $0 to $500,000)0.35% p.a.(for $0 and over)Yes up to $250,000Bonus rate for the first 4 months from account opening
No account keeping fees. No minimum balance required. Unlimited phone and internet transactions.
CompareCompareOnline Saver
No account keeping fees. No minimum balance required. Unlimited phone and internet transactions.
- Maximum rate
- 1.10% p.a. (for $0 to $500,000)
- standard interest rate
- 0.35% p.a.(for $0 and over)
- 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
- 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 Online Saver
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Grow Saver
Maximum rate
standard interest rate
Govt Deposit Guarantee
0.65% p.a. (for $0 and over)0.10% p.a.(for $0 and over)Yes up to $250,000Make at least 1 deposit and no more than 1 withdrawal, including internal transfers or external payments.
Earn a maximum interest rate of 0.65% per year. Pay no monthly fees. Set up in-app savings goals. Benefit with joint account options.
CompareCompareGrow Saver
Earn a maximum interest rate of 0.65% per year. Pay no monthly fees. Set up in-app savings goals. Benefit with joint account options.
- Maximum rate
- 0.65% p.a. (for $0 and over)
- standard interest rate
- 0.10% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Make at least 1 deposit and no more than 1 withdrawal, including internal transfers or external payments.
- Access
- BPay, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Savings account only accessible through iOS or Android app.
Read our Mozo Review to learn more about the Grow Saver
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Savings Maximiser
Maximum rate
standard interest rate
Govt Deposit Guarantee
1.35% p.a. (for $0 to $100,000)0.05% p.a.(for $0 and over)Yes up to $250,000For customers who have an Orange Everyday and in each month deposit at least $1,000 into a personal ING account, make at least 5 settled card purchases using the linked ING debit card and grow the account balance.
No ING fees. Great variable rate every month when you grow your balance each month in addition to other eligibility criteria.
CompareCompareSavings Maximiser
No ING fees. Great variable rate every month when you grow your balance each month in addition to other eligibility criteria.
- Maximum rate
- 1.35% p.a. (for $0 to $100,000)
- standard interest rate
- 0.05% 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 have an Orange Everyday and in each month deposit at least $1,000 into a personal ING account, make at least 5 settled card purchases using the linked ING debit card and grow the account balance higher at the end of the month (excluding interest) than it was at the end of the previous month.
- 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 Savings Maximiser
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High Interest Savings Account
Maximum rate
standard interest rate
Govt Deposit Guarantee
1.35% p.a. (for $0 to $250,001)0.25% 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.
CompareCompareHigh 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.
- Maximum rate
- 1.35% p.a. (for $0 to $250,001)
- standard interest rate
- 0.25% 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 High Interest Savings Account
Two of the highest ongoing savings account rates in Australia are being reduced again, with neobanks 86 400 and Up both dishing out the rate cut treatment this week.
86 400’s change comes into effect today, with the rate on its Save Account dropping by 15 basis points. That means savers who deposit at least $1,000 a month into the account will now be able to earn a maximum rate of 1.70%.
Meanwhile, Up will cut 25 basis points off the Saver Account rate tomorrow, leaving the maximum rate available for savers who make at least five purchases a month with a linked Up card at 1.60%.
According to Mozo Banking Expert, Peter Marshall, the cuts aren’t all that surprising given the competitive positions of both rates in the market
“Both of these brands are neobanks, but they’re also backed by more traditional organisations: Bendigo Bank in Up’s case, and Cuscal in 86 400’s case. So to some extent they’re both going to have to deal with whatever their parent organisations are going through - they can’t be completely shielded from it.”
“It would have been nice to see them hold out from a brand building perspective, but at the end of the day they’ve got to ensure that their businesses are viable in the long term, so there’s only so much they can absorb with frontrunning on rates.”
Savings returns slowly diminishing
Despite the changes, the new rates on offer from both 86 400 and Up still rank among the highest savings account rates in the Mozo database.
To put them into perspective, here’s a snapshot of the three highest ongoing savings account rates in the Mozo database available to Australians of all ages as of 14 July:
Rate | Monthly conditions | |
BOQ - Fast Track Saver | 1.85% (Up to $250k) | Min. $1k deposit into a linked BOQ transaction account |
ING - Savings Maximiser | 1.80% (Up to $100k) | Min. $1k deposit into a linked ING transaction account plus 5 card purchases |
1.80% (Up to $250k) | Min. 4 tap and go purchases with a linked ME debit card |
The general picture for savers hasn’t been a pretty one of late though, particularly for those who may not have switched to a more competitive rate in recent months.
In fact, the average ongoing savings account rate in the Mozo database is just now 0.70% - 59 basis points below the average rate of 1.29% in July 2019.
“Unfortunately for savers, rates have been crashing and there’s no sign of that ending anytime soon. However, many Australians will be relying on savings accounts as a safe place to park their cash at present,” said Marshall.
“Given that, and given the substantial difference between the offers at the top and bottom end of the market, it’s certainly worth reviewing your current rate - particularly if you’re holding a sizable balance.”
So just how much of a difference does the rate you’re on make to your balance?
Crunching the numbers using the Mozo savings calculator, here’s the difference on a $10,000 balance, assuming a regular deposit of $200/month, over three years:
1.85% rate: $768 total interest earned
0.70% rate: $286 total interest earned
RELATED: Westpac offers young Aussie savers a new market-leading interest rate
Ready to see how your current rate stacks up against some of the hottest on the market? Get started by checking out the offers in the table below, or pay a visit to our high interest savings account hub for even more great rates.
^See information about the Mozo Experts Choice Savings Account Awards
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