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 April 2024

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

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  • Savings Account

    5.35% 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.

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  • 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.

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  • Mozo Expert Choice Badge
    AMP Saver Account

    5.40% p.a. (for $0 to $250,000)

    1.20% p.a.(for $0 to $5,000,000)

    Yes up to $250,000

    Enjoy a bonus rate when you deposit at least $1000 per month with the AMP Saver Account.

    No account fees. Unlimited transactions when linked to an AMP Bank transaction account. Easy online access to your money. Option to link your savings account to an everyday transaction account. 2024 Mozo Experts Choice Award winner.

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  • Savings+Bonus

    5.00% p.a. (for $0 to $250,000)

    2.00% p.a.(for $0 to $250,000)

    Yes up to $250,000

    Earn a generous interest rate on your at-call savings (T&Cs apply). Interest is calculated daily and paid to you monthly. A $5 monthly membership fee will not apply if your total account balances with First Option Bank exceed $1,000 or you have a credit card or loan with the bank.

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^See information about the Mozo Experts Choice Savings Account Awards

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