August savings accounts: Westpac surprise new market-leader

Woman sitting on chair, looking at savings accounts on mobile phone and smiling.

As headline rates dropped in July, Westpac made a surprise move. The big four bank introduced a new savings account: Westpac Life, which comes with an enticing 3.00% p.a. interest rate.

Westpac Life, what’s the catch?

Well, the thing is it’s only available for 18 to 29-year-olds and you can only get that higher interest rate on balances up to $30,000. The good news is if you do fit into that younger age group, then you might be able to snag yourself some sweet interest on your savings. Just be sure to make at least five transactions each month, through your linked Westpac Choice account.

Headline rates fall

Of course, if you don’t fit into that younger millennials/Gen Z club, then you will have to look elsewhere for a more competitive rate.

If you put your money with one of the previously market-leading neobanks, then you will have been disappointed in July. We saw the likes of 86 400, Up and Xinja cut rates by as much as 25 basis points.

86 400 cut the interest rate on its Save Account down to 1.70% p.a., while Up’s Saver Account went down to 1.60% p.a. and Xinja’s Stash Account dropped to 1.65 % p.a. 

86 400 still top five

Now this might all sound fairly unpromising, but even with this new lower rate, 86 400’s Save Account still holds one of the top five savings rates in the Mozo database*. 

Right now, the average savings rate is around 0.82% p.a., so even if your rate drops to 1.60% p.a., you’re still well ahead of the curve*. 

Rate research: shop around

Even though savings rates are on a downward spiral at the moment, it is still worth shopping around to give your stash that little bit of extra help.

“It’s always better to take one of the best rates that you can,” said Mozo’s Banking Expert Peter Marshall. “Even if it’s only 20 or 30 basis points difference, depending on how much money you have, it can make a difference.”

Marshall added that it is definitely worth looking beyond the big four banks, or even just changing things up.

“If you want to have a bit of money with the big four, split it 50/50 between a big bank and another provider,” said Marshall.

At 1.75% p.a., MyState Bank and Australian Unity currently offer the most competitive ongoing savings rate available in the Mozo database*. The conditions are as follows:

  • Australian Unity Active Saver - Earn up to 1.75% p.a. on balances up to $500,000. Deposit at least $250 each month into your savings account to ensure you receive the full interest rate.
  • MyState Bank Bonus Saver Account - Again you can earn a maximum of 1.75% p.a. interest with this savings account. This interest rate can be earned on balances up to $250,000. Just make sure you deposit at least $20 each month and make at least five transactions with your linked Everyday or Glide Transaction account.

Curious to see if you can bag yourself a more competitive savings rate? Head to Mozo’s compare savings accounts page or check out the interest rates on offer below for more options.

Compare savings accounts - last updated 8 December 2023

Search promoted savings accounts below or do a full Mozo database search . Advertiser disclosure
  • Reward Saver Account

    5.25% p.a. (for $0 to $1,000,000)

    0% p.a.(for $0 and over)

    Yes up to $250,000

    Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.

    Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.

  • Mozo Expert Choice Badge
    Savings Account

    5.50% p.a. (for $0 to $250,000)

    4.75% p.a.(for $0 to $1,000,000)

    Yes up to $250,000

    Bonus variable rate is available for the first four months.

    Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.

  • Reward Saver

    5.25% p.a. (for $0 to $100,000)

    0.30% p.a.(for $0 and over)

    Yes up to $250,000

    Earn a high interest bonus rate if you hold an eligible transaction account and meet the bonus rate conditions (T&Cs apply). Only requires $1 to open. Free e-banking transactions. No monthly service fees to pay. Access your account via e-banking or the Bendigo Bank app. Not applicable to business customers.

  • High Interest Save Account

    5.10% p.a. (for $0 to $250,000)

    0.10% p.a.(for $0 and over)

    Yes up to $250,000

    Deposit at least $200 to either Spend or Save account from an external source each month.

    No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.

  • Mozo Expert Choice Badge
    High Interest Savings Account

    5.75% p.a. (for $0 to $250,001)

    4.40% p.a.(for $0 to $250,001)

    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.


*Interest rates taken from information available in the Mozo database, correct as of 30 July 2020.

^See information about the Mozo Experts Choice Savings Account Awards

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