Aussies could be earning more interest on their savings, says ACCC

A hand puts a coin into a smiling piggy bank, next to a large percentage sign

A new report released today by the Australian Competition and Consumer Commission (ACCC) shows that many savers may be sticking with savings accounts that aren’t in their best interest. 

The Retail deposit inquiry report found that only 16% of Australians had switched their main savings account in the last three years, but also suggested that part of the problem is that banks are making it harder for customers to compare and switch.

Considering the average ongoing bonus savings rates in the Mozo database have spiked from 1.02% p.a. in November 2020 to 4.31% p.a. in November 2023, Australians may be missing out on higher interest rates from their current bank’s competitors. 

This is even more alarming when you consider that Australians store over $1.4 trillion in savings accounts, as per the ACCC.

Average bonus savings rate is higher but many of us are missing out

The ACCC’s report also noted that the majority of Australians with bonus rate savings accounts aren’t meeting the conditions required to earn them their bonus. 

In the first half of 2023, 71% of bonus interest rate account holders didn’t meet the eligibility conditions to get their bonus interest credit on average each month. 

This could effectively wipe out an otherwise high savings interest rate, replacing it with a base rate that, by comparison, is functionally useless.  

One of the highest ongoing bonus rates in the Mozo database is ING’s Savings Maximiser account, at 5.50% p.a.

ING Savings Maximiser
  • Up to 5.50% p.a. bonus interest rate (conditions apply)
  • $100,000 balance cap for bonus rate
  • No monthly account fees
Find out more

The ING Savings Maximiser comes with a bonus interest rate of 5.50% p.a. (0.55% p.a. standard interest rate) for savers who meet the bonus rate criteria. To get ING’s highest rate, you must link your Savings Maximiser account to your Orange Everyday account, deposit at least $1,000 a month from an external source (e.g. your salary), make at least 5 settled, eligible card purchases, and grow your savings balance by more than the accrued interest each month.

The account also picked up a 2023 Mozo Experts Choice Savings Award^ in the best High Interest Savings category!

However, the bonus criteria required of savers to get that rate include: 

  • Depositing $1,000 per month 
  • Opening an Orange Everyday transaction account 
  • Making 5 eligible transactions per month with a linked ING card
  • Growing your savings balance each month. 

If those conditions aren’t met, the 5.50% p.a. rate shrinks to just 0.55% p.a.

So, consumers who don’t meet the bonus conditions are doing themselves a disservice by choosing a bonus interest savings account in the first place. But there are other types of savings accounts out there. 

The ACCC’s report says, “These consumers would likely benefit from switching to an account in which they could regularly meet the bonus rate conditions, or has a higher (unconditional) base interest rate.” 

Take MOVE Bank’s Growth Saver account as an example of a bonus savings rate with fewer hurdles to clear (although there is a significant difference in the balance cap, compared to ING’s account). 

MOVE Bank Growth Saver
  • Up to 5.70% p.a. bonus interest rate (conditions apply)
  • $25,000 balance cap for bonus rate
  • No monthly account fees
Find out more

MOVE Bank’s Growth Saver account offers a maximum bonus interest rate of 5.70% p.a. (0.10% p.a. standard interest rate) for those who meet the bonus interest conditions: deposit $200 per month and make no withdrawals from their savings account. 

This account also won a Best High Interest savings crown at the 2023 Mozo Experts Choice Savings Accounts Awards^.

The Growth Saver account is currently the highest ongoing bonus savings rate in the Mozo database (as at 15 December 2023) at 5.75% p.a., provided the bonus conditions are met. 

However, if Growth Saver customers make a withdrawal from their savings account or fail to deposit at least $200 per month, that high rate of interest plummets to 0.10% p.a.

Still, the MOVE Bank Growth Saver account’s minimum deposit of $200 is a much lower hurdle than ING’s $1,000 minimum and doesn’t require customers to grow their balance or make card transactions. 

But even if consumers aren’t able to consistently save a certain amount each month, there are plenty of unconditional base rates out there that rival many of the bonus offerings – although you may still have to link them to a transaction account at the same bank.  

How to make sure you’re getting the best savings rate you can

Getting a better savings rate is in your control, despite what the banks do. That’s what we specialise in at Mozo - financial product comparisons!

When you compare savings rates on our site, keep an eye on the standard interest rate column as, even if the account offers a bonus rate, a high standard rate will grow your savings faster than a low one. 

To get started, check out some of the featured products that Mozo tracks below.

Savings account comparisons on Mozo - last updated 24 February 2024

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.

    Compare
    Details
  • 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.

    Compare
    Details
  • Hero Saver

    4.60% p.a. (for $0 to $250,001)

    1.00% p.a.(for $0 to $5,000,001)

    Yes up to $250,000

    Minimum deposit of $200 and no withdrawals in the month.

    Earn a generous variable rate on balances up to $250,001 each month you deposit at least $200 (excluding interest) on or before the last business day each month and make no withdrawals during the month. $0 account maintenance fees. Create a goal, set up regular deposits and track your progress on the Bankwest app.

    Compare
    Details
  • 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.

    Compare
    Details
  • 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.

    Compare
    Details
  • 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.

    Compare
    Details
  • Mozo Expert Choice Badge
    Bonus Saver Account

    5.00% 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 Glide transaction account.

    Start saving and earn interest with just a $20 deposit and make 5 eligible transactions each month. No fees or penalties for withdrawing money.

    Compare
    Details

^See information about the Mozo Experts Choice Savings Account Awards

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