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
| Rate | Monthly Conditions | |
|---|---|---|
| 86 400 - Save Account | 1.85% (Up to $300k) | Min. $1k deposit into an 86 400 savings or transaction account |
| BOQ - Fast Track Saver | 1.85% (Up to $250k) | Min. $1k deposit into a linked BOQ transaction account |
| Up - Saver Account | 1.85% (Up to $50k) | Min. 5 purchases with a linked Up debit card |
| ING - Savings Maximiser | 1.80% (Up to $100k) | Min. $1k deposit into a linked ING transaction account plus 5 card purchases |
| ME - Online Savings Account | 1.80% (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
^See information about the Mozo Experts Choice Savings Account Awards
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