Trying to save money? Comparing the best high interest savings accounts in 2022

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If you’ve been rethinking your finances lately, you’re not alone. After an eye-watering growth in the cost of living, it seems many Australians are taking the opportunity to improve how they handle their money, whether it’s by tightening their belts to pay off debts or parking their savings in an account with better interest.

Despite two years of a record low cash rate (which influences the variable interest rates used by lenders/banks), the Reserve Bank of Australia (RBA) finally hiked it last week to 0.35%. This means we're likely to see a ripple effects in savings accounts soon.

This is encouraging news for Australians hoping to be more frugal this year. So how might they go about finding the best high interest savings accounts for their needs? 

RELATED: 10 easy ways to handle the rising cost of living

What would an interest rate increase mean for savings accounts?

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While the May RBA rate rise of 0.25% spells grim news for variable home loan owners, it's great news for savings accounts! Since interest rates tend to shift with the flow of the cash rate, we'll likely see a savings rate boost in the coming months. 

Hiking the cash rate serves as the RBA's economic handbrake in the face of rapid inflation or an increase in wages. Better savings interest rates hopefully encourages Australians to save money instead of spending it. 

However, data released from the Australian Bureau of Statistics in December 2021 shows that wages only grew 0.7% over the December quarter, so this isn’t exactly promising.  Therefore, economists aren’t optimistic that Australians will be able to put away much spare cash into their savings this year.

Regardless of what happens, if you’re unsatisfied with your current savings account, it may be a good time to investigate which long-term savings options work best for you.

Different kinds of savings accounts

High interest savings accounts aim to maximise your returns in the short run, but there are other different kinds of savings accounts to choose from as well. These include:

We’ve written up guides on joint savings accounts, too, if you’re looking to share banking arrangements with your partner. We also have explainers on neobanking (money apps) and online savings accounts for people on the go.

Things to consider when comparing high interest savings accounts

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As part of our annual Mozo Expert Choice Awards, we’ve rounded up the best high interest savings accounts for 2022 to get you started.

You can also check out our monthly editor's pick savings accounts with competitive interest rates. 

However, there are a few things to look out for when making a choice that suits your needs and goals. 

Interest rates

This one’s a biggie. An interest rate between 0-1% won’t make you much money at all, whereas rates in the realm of 2% will start to give you that savings boost. 

Something to watch out for: banks will often offer sky-high introductory rates to reel you in before lowering them after a few months. Be sure to pay attention to the long-term numbers before making your decision. 

Don't forget to do your research. Term deposits and special savings accounts for under 30s could net you those desirable interest rates, it's all about comparing what's on offer!

Monthly conditions

Some financial institutions have strings attached before you’re guaranteed the top interest rate available. These aren’t exactly sneaky, but if you’re not careful, you could inadvertently get stuck with those grim 0-1% rates for a month.

For example, the bank might want you to meet a minimum monthly deposit, or slap you with penalties for withdrawing money. Some may even limit the total transactions you can make to your account per month. Yikes!

However, there are ways to work with these conditions so you can enjoy top rates. You can split your monthly pay checks by putting a portion into savings while leaving the rest in an everyday transaction account – in fact, this can be a great way to ensure you never touch your savings account at all.

Hidden fees

Now here’s where banks get sneaky. While hidden fees are pretty rare, they’re also supremely annoying and can eat away at your savings over time. Look for transaction, ATM, or account-keeping fees when reviewing a policy.

Ethical banking

If you’re looking for a savings account that aligns with your moral values – not your just financial ones – there are plenty of ethical banking options available for the conscientious consumer. These accounts invest in alternative energy sources or other sustainable, humanitarian enterprises, at no extra cost to you, so that you feel confident about where your money goes.

How to grow your savings account

Head over to our guides for everyday savings and creating a budget for more inspiration.

We’ve also got six crazily inventive ways to challenge yourself to save money, if you’re keen on making it fun.

Compare and save on high interest savings accounts - last updated 13 August 2022

Search promoted savings accounts below or do a full Mozo database search . Advertiser disclosure
  • Save Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    2.35% 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.

    Earn up to 1.85% p.a in interest. No monthly fee to pay. Split your money in up to 10 Save accounts. Track your progress on each of your save accounts. Instant access to cash via PayID and Osko. Deposits guaranteed up to $250k per customer.

    Details
  • Mozo Expert Choice Badge
    Boost Saver with Go Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    2.30% p.a. (for $0 to $250,000)
    0.05% p.a.(for $0 and over)
    Yes up to $250,000

    Bonus rate of 2.30% is made up of the Base rate of 0.05% and Bonus rate of 2.25%. 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 high interest savings account bundled with an everyday spending account. No monthly fees. And new customers can get a welcome bonus of 5,000 bonus Virgin Money Points (ends 31/08/22. Offer criteria & T&Cs apply).

    Details
  • Mozo Expert Choice Badge
    Life - 18-29 years old
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    2.75% p.a. (for $0 to $30,000)
    0.65% p.a.(for $0 and over)
    Yes up to $250,000

    Make 5 card purchases/month with a Westpac Choice account and min 1 deposit and higher balance than at the beginning of the month in Life savings account.

    Are you 18 - 29 years of age? Earn up to a generous 2.75% p.a. variable interest on your savings when you spend and save with Westpac. For individuals aged 18 to 29 on Westpac Life account balances up to $30k.

    Details
  • Mozo Expert Choice Badge
    Bonus Saver Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    2.10% 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 Glide transaction account.

    Winner of a Mozo Experts Choice Award 2022 in the Regular Saver category. No monthly account fees. Available only on balances up to $250,000.

    Details
  • Grow Saver
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.80% p.a. (for $0 and over)
    0.05% p.a.(for $0 and over)
    Yes up to $250,000

    Make at least 1 deposit per month and no more than 1 withdrawal, including internal transfers or external payments. Must enable the Lock Saver feature. 32 days notice for withdrawal and T&C's apply.

    Pay no monthly fees. Set-up to 9 personalised savings accounts and choose to lock as many accounts as you like to earn the maximum variable interest rate. With just 32 days notice to access your money again, your future self will thank you.

    Details

^See information about the Mozo Experts Choice Savings Account Awards

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