August savings rates: Cuts continue into the second half of 2021

Person wearing gloves using shears to cut hedge, similar to savings interest rate cuts.

While savings interest rates began to plateau over the last few months, the new financial year has brought further reductions.

The average ongoing savings rate dropped another two basis points to 0.41%, with Mozo’s research team recording 11 cuts in the database last month.

It’s not great news for savers, especially those impacted by current COVID-19 lockdowns and restrictions. If you are facing financial hardship, you may want to explore current support programs, including assistance from banks and COVID government subsidies for individuals and businesses.

We’ve also got a few tips for cutting down on splurging for Australians currently in lockdown.

How to curb spending during lockdown

  • Treat yo’self – but have goals: We’ve all probably felt the dopamine kick of therapy shopping, but ordering a package or eating a royal feast every other day isn’t going to be healthy for your bank balance. Set goals for yourself – not limits – so you purchase items or experiences that you really value, rather than everything on the sale rack.
  • Look to nature: You need vitamin D after all those indoor hours, and getting out amongst the greenery is free. So, factor in a regular socially distanced walk, bike ride or swim somewhere with plenty of leaves and wide open spaces.
  • Test passive savings features: If you’re yet to jump on the minimal-effort savings train, now is the time to try it out. Experiment with round-up features which transfer money from your bank account to your savings every time you make a purchase by rounding up the difference to the nearest whole dollar and whizzing away to change to earn interest. Or, set an automated transfer for post-pay-day so you lock away funds to grow interest asap.
  • Set savings goals: You might be feeling a little aimless during lockdown, but this too will end (even if life continues to look a little different). While you may not be able to plan a holiday or major event any time soon, consider separating your savings into sub-accounts for these goals anyway. This way, you can get excited about saving as you're striving for something tangible, even if it is further down the track than you had imagined.

If you want to make the most out of the cash you’ve got, make sure you’re getting a good deal on your savings interest rate by comparing the options below.

Compare savings rates - last updated 18 September 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
  • Mozo Expert Choice Badge
    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 $250,000

    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.

    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
  • WebSavings Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.00% p.a. (for $2,000 and over)
    0.05% p.a.(for $2,000 and over)
    Yes up to $250,000

    Bonus rate for the first 4 months from account opening on balances over $2,000 only, available to new customers only.

    A high interest savings account that still lets you access your cash, no monthly account keeping fees and top up as many times as you like.

    Details
  • 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 $250,000

    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.

    No ING fees. Great variable rate every month when you grow your balance each month in addition to other eligibility criteria.

    Details
  • 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 $250,000

    Bonus 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.

    Details

^See information about the Mozo Experts Choice Savings Account Awards

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