86 400, Up and BOQ provide sanctuary for savers as rates are further savaged

Australian savers just can’t catch a break. Over the past few years, rates have fallen again and again to the point where the average ongoing savings account interest rate in the Mozo database sits at just 0.74% today. 

In fact, since the last Reserve Bank cut in March, 87 banks being tracked by Mozo have reduced at-call savings account rates.  

While savers may be wondering if there’s any point shopping around for a better option with rates so low, Mozo figures show that there is still a substantial difference between the highest rates on the market, the average rate, and many of the rates being offered by Australia’s largest banks. 

As things currently stand, the highest ongoing savings account rate in the Mozo database is 1.85% - a considerable 1.11% above the average. This rate is being offered by neobanks 86 400 and Up, as well as the Bank of Queensland (BOQ).

To give you a fuller picture, here are the five highest ongoing savings account rates in the Mozo database, the balance you’ll be able to get that rate on, and any conditions you’ll need to meet in order to access it.

Highest ongoing savings account rates - June 16

RateMonthly Conditions
86 400 - Save Account1.85% (Up to $300k)Min. $1k deposit into an 86 400 savings or transaction account
BOQ - Fast Track Saver1.85% (Up to $250k)Min. $1k deposit into a linked BOQ transaction account
Up - Saver Account1.85% (Up to $50k)Min. 5 purchases with a linked Up debit card
ING - Savings Maximiser1.80% (Up to $100k)Min. $1k deposit into a linked ING transaction account plus 5 card purchases
ME - Online Savings Account1.80% (Up to $250k)Min. 4 tap and go purchases with a linked ME debit card

In comparison, the average ongoing savings rate being offered by the big four banks is currently just 0.36%, with the Westpac Life account the highest at 1.05%. 

But what do those differences mean practically? 

As the Mozo savings calculator shows, on a savings account balance of $10,000 over a period of two years (assuming no extra contributions), a saver would make:

  • $377 interest with a rate of 1.85%
  • $149 interest with a rate rate of 0.74%
  • $72 interest with a rate of 0.36%

“At a time when we all need to be getting the most out of our money, there’s not a lot of good news for the nation’s savers,” said Mozo Director, Kirsty Lamont.

“And while some savers might be nervous moving their money away from the big banks at such an uncertain time, if you want the best return it’s time to try something new.”

RELATED: How to save money during a recession

Ready to grab a more generous rate for your savings? See how your current rate stacks up against some of the hot offers below, or check out the Mozo savings account comparison tables for offers from an even wider selection of banks

Compare savings accounts - last updated 24 October 2021

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • 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 $250,000

    Intro 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

    Details
  • 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 $250,000

    Bonus rate for the first 4 months from account opening

    No account keeping fees. No minimum balance required. Unlimited phone and internet transactions.

    Details
  • 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 $250,000

    Make 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.

    Details
  • Fast Track Saver Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.05% p.a. (for $1 to $250,000)
    0.05% p.a.(for $1 and over)
    Yes up to $250,000

    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.

    Details

^See information about the Mozo Experts Choice Savings Account Awards

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