Citi bucks low interest trend with new rate for Online Saver account

Woman sits at table with laptop, holding papers and looking at her phone, smiling.

Citibank has surprised everyone today by actually increasing the introductory interest rate on its Online Saver account from 0.85% p.a. to 1.10% p.a.

Interest rates have been on a downward spiral for some time now, with savings rates in particular suffering from three Reserve Bank cash rate cuts this year. Indeed, the average ongoing savings rate fell from 0.66% p.a. in mid-November to 0.48% p.a. in early December.* In the past month alone, Mozo counted 44 cuts to ongoing bonus rates and 16 cuts to introductory rates on savings accounts.

Citi’s increased introductory rate

So, as you can see there certainly isn’t a lot of positive movement in the savings world right now. Citibank seems to be one of a few exceptions to the rule, however.

Now, as this is an introductory offer, Citibank’s 1.10% p.a. interest rate is only available for the first four months that you have the account. After that your interest rate will drop to 0.35% p.a. However, if you don’t mind account hopping for a decent savings rate, you could earn yourself a tidy sum of interest in that time. The rate is available for balances up to $500,000.

Other savings accounts to look out for

If you’re after something a little more long term, some savings accounts with competitive bonus rates, listed in the Mozo database are:

  • The Westpac Life account which comes with a 3.00% p.a. interest rate. This account is for 18 to 29-year-olds and the full interest rate can be earned on balances up to $30,000. 
  • MyState Bank’s Bonus Saver account, which offers a 1.35% p.a. savings rate for balances up to $250,000.
  • ING’s Savings Maximiser which comes with an interest rate of 1.35% p.a. for balances up to $100,000.
  • UBank’s USave with USpend savings and transaction account combo. This offers an interest rate of 1.25% p.a. For balances up to $250,000.

As these are bonus savings rates, there will be conditions to earning them each month. Usually these are depositing a certain amount of money into your account on a regular basis or making a certain number of transactions throughout the month. Read the full product reviews for more information on each one.

Didn’t find what you were looking for? Head to Mozo’s compare savings accounts page for more options, or check out the offers below.

Compare savings account interest rates - last updated 28 May 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. No Account keeping fees. No minimum balance. Support Aussie farmers with every dollar you save.

    Compare
    Details
  • 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.

    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, Bills 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.

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    Details
  • 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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    Details
  • 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

^See information about the Mozo Experts Choice Savings Account Awards

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