Australian savers see real value of money shrink – here’s what you can do to fix it

By Peter Terlato · · 3 min read
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unhappy Australian saver on phone

Australian savers are facing a hidden challenge as the interest earned on their savings accounts struggles to keep pace with the rising cost of living. Mozo figures reveals that while the average savings rate sits at 3.09% p.a.*, the real return for many is minimal, and in some cases, negative.

The latest inflation data from the Australian Bureau of Statistics (ABS) shows a monthly CPI inflation figure of 2.80%. This figure is a critical benchmark for savers because it erodes the purchasing power of their money.

When the average savings rate is adjusted for inflation, the real rate of return is just 0.29% p.a.

This can be calculated with the following equation:

3.09% p.a.* (interest rate) − 2.80% (inflation rate) = 0.29%

This means that while the number of dollars in your savings account may be increasing, the amount of goods and services those dollars can buy is barely growing.

The state of savings account rates right now

Savings rates can vary widely depending on whether you’re chasing ongoing bonus conditions, short-term introductory offers, or unconditional base rates. To give you a clearer picture, here’s how the average, median and best rates stack up across personal accounts and among the Big Four banks.

All personal accounts*

Category
 Average (p.a.)
 Median (p.a.)
 Best (p.a.)
All ongoing
 3.09%
 3.60%
 5.00%
Only bonus
 4.00%
 4.05%
 5.00%
Only introductory rates
 4.36%
 4.40%
 5.00%
Only unconditional rates
 1.09%
 0.40%
 4.55%

Big Four banks*

Category
 Average (p.a.)
 Median (p.a.)
 Best (p.a.)
Ongoing bonus
 2.57%
 2.35%
 5.00%
Only bonus
 4.00%
 4.25%
 5.00%
Only introductory rates
 4.37%
 4.40%
 4.45%
Only base rates
 0.65%
 0.53%
 1.55%

The unconditional rate problem

The situation is particularly dire for customers of Australia's Big Four banks who are on accounts with low "unconditional" or "base" rates. These accounts often pay a small amount of interest to savers who don't meet strict conditions, such as making a minimum monthly deposit or avoiding withdrawals.

Mozo data shows that the average unconditional rate from the Big Four is just 0.65% p.a.* When this is adjusted for inflation, the real rate of return is in negative territory. For these savers, the value of their money is actively shrinking over time. 

This can be calculated as:

0.65% p.a.* (unconditional rate) − 2.80% (inflation rate) = -2.15%

These so-called savers are drastically losing purchasing power, a trend that is unlikely to reverse as long as inflation remains a significant factor in the economy.

Take action to improve your savings’ return rate

For many Australians who rely on savings to build a financial buffer, it is more important than ever to be proactive. Here are some steps you can take:

  • Compare savings accounts. Savings rates can vary significantly based on whether they offer ongoing bonus conditions, short-term introductory offers, or unconditional base rates. Assess and compare different savings accounts to ensure you receive a competitive rate.
  • Seek better rates. Mozo’s database shows the best ongoing rate across all accounts (5.00% p.a.*) is significantly higher than the average (3.09% p.a.*). For accounts with bonus rates, the best rate (5.00% p.a.*) is an entire percentage point higher than the average (4.00% p.a.*).
  • Avoid low-interest accounts. Be aware of accounts with low unconditional or base rates, especially those from the Big Four banks, as they typically offer minimal returns.

*Source: Mozo database. $10,000 balance. Figures shown are accurate as of 10 September, 2025.

Compare savings accounts below

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 255 savings accounts using the filters.
Last updated 5 December 2025 Important disclosures
  • Promoted

    Boss Saver

    Maximum rate
    4.65 % p.a.
    (for $0 to $100,001)
    Minimum $500 deposited into linked transaction account, and 5 Visa Card transactions from that account
    Standard rate
    0.20 % p.a.
    (for $0 and over)
    Go to site
    • Ongoing bonus interest when you meet conditions
    • No minimum balance, ongoing fees or withdrawal penalties
    • Manage your money easily on the BCU Bank app
  • Promoted

    AMP Bank GO Save

    Maximum rate
    4.25 % p.a.
    (for $0 to $250,001)
    Standard rate
    4.25 % p.a.
    (for $0 to $250,001)
    Go to site
    • No deposit or withdrawal conditions
    • No minimum balance or monthly account fees
    • All you need is an AMP Bank GO Everyday Account to open a Save account in the AMP Bank GO app.
  • Promoted

    Reward Saver Account

    Maximum rate
    4.50 % p.a.
    (for $0 to $1,000,000)
    Intro bonus rate of 4.50% for balances up to $1,000,000 for the first 4 months, reverting to 2.50%. Minimum deposit of $50 and no withdrawals.
    Standard rate
    0.00 % p.a.
    (for $0 and over)
    Go to site
    • Earn bonus rate by depositing $50 a month and making no withdrawals
    • Introductory rate for first 4 months
    • No monthly account fees

  • High Interest Savings Account

    Maximum rate
    5.00 % p.a.
    (for $0 to $250,001)
    Bonus rate for the first 4 months from account opening
    Standard rate
    3.45 % p.a.
    (for $0 to $250,001)
    Go to site
    • Easy set up, online and mobile banking app
    • No fees, no minimum balance, no minimum monthly deposit and no minimum term
    • Kick start your savings with the 4 month introductory variable rate

  • Reward Saver Kick Start Account - Up to 30 years old

    Maximum rate
    4.75 % p.a.
    (for $5,000 to $100,000)
    Minimum deposit of $20 and no withdrawals in the month.
    Standard rate
    0.00 % p.a.
    (for $0 and over)
    Go to site
    • Earn bonus rates by depositing $20 a month and making no withdrawals
    • Mozo Experts Choice Awards winner for Teen High Interest Savings in 2025
    • No monthly account fees

  • Boss Saver

    Maximum rate
    4.65 % p.a.
    (for $0 to $100,001)
    Minimum $500 deposited into linked transaction account, and 5 Visa Card transactions from that account
    Standard rate
    0.20 % p.a.
    (for $0 and over)
    Go to site
    • Ongoing bonus interest when you meet conditions
    • No minimum balance, ongoing fees or withdrawal penalties
    • Manage your money easily on the BCU Bank app

  • Savvy Saver Account

    Maximum rate
    4.65 % p.a.
    (for $0 to $100,001)
    Minimum $500 deposited into linked transaction account, and 5 Visa Card transactions from that account
    Standard rate
    0.20 % p.a.
    (for $0 and over)
    Go to site
    • No minimum balance required
    • Move money in and out and still earn interest
    • Transfer or make payments using the mobile app

  • Reward Saver Account

    Maximum rate
    4.50 % p.a.
    (for $0 to $1,000,000)
    Intro bonus rate of 4.50% for balances up to $1,000,000 for the first 4 months, reverting to 2.50%. Minimum deposit of $50 and no withdrawals.
    Standard rate
    0.00 % p.a.
    (for $0 and over)
    Go to site
    • Earn bonus rate by depositing $50 a month and making no withdrawals
    • Introductory rate for first 4 months
    • No monthly account fees

  • Smart Saver Account

    Maximum rate
    4.45 % p.a.
    (for $0 to $250,000)
    Minimum deposit of $100 and no withdrawals in the month
    Standard rate
    0.50 % p.a.
    (for $0 and over)
    Go to site
    • Earn bonus interest each month (T&Cs apply)
    • Open up to five accounts
    • No monthly fees or minimum balance

  • Power Saver

    Maximum rate
    4.35 % p.a.
    (for $0 to $250,000)
    Minimum of $100 deposited into account, and no withdrawals made.
    Standard rate
    0.50 % p.a.
    (for $0 and over)
    Go to site
    • Bonus interest for the first four months
    • No minimum balance, ongoing fees or withdrawal penalties
    • Manage your money easily on the BCU Bank app

  • AMP Bank GO Save

    Maximum rate
    4.25 % p.a.
    (for $0 to $250,001)
    Standard rate
    4.25 % p.a.
    (for $0 to $250,001)
    Go to site
    • No deposit or withdrawal conditions
    • No minimum balance or monthly account fees
    • All you need is an AMP Bank GO Everyday Account to open a Save account in the AMP Bank GO app.

  • Savings+Bonus

    Maximum rate
    4.25 % p.a.
    (for $1 to $250,000)
    Minimum $100 monthly deposit and no withdrawals to earn bonus interest each month.
    Standard rate
    1.75 % p.a.
    (for $1 to $250,000)
    Go to site
    • Enjoy bonus interest when you meet criteria
    • Access your money at any time via app
    • $250K maximum balance

  • Bonus Saver

    Maximum rate
    4.25 % p.a.
    (for $0 and over)
    Standard rate
    0.05 % p.a.
    (for $0 and over)
    Go to site
    • Bonus interest for the first four months
    • No minimum balance, ongoing fees or withdrawal penalties
    • Manage your money easily on the BCU Bank app

  • Hi Saver

    Maximum rate
    4.25 % p.a.
    (for $0 and over)
    Bonus rate for the first 4 months from account opening
    Standard rate
    0.05 % p.a.
    (for $0 and over)
    Go to site
    • Earn bonus interest for the first four months
    • No Minimum balance required
    • Transfer or make payments using the mobile app
Showing 11 results from 255 savings accounts. Use the filters to see more

^See information about the Mozo Experts Choice Savings Account Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

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Today's savings account rates