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

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 February 26, 2021

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure.
  • Mozo Experts Choice 2021
    Bonus Saver Account

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.20% p.a. (for $0 to $250,000)
    0.10% 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 Everyday or Glide transaction accounts.

    Compare
    Details
  • Serious Saver

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    0.30% p.a. (for $0 to $1,000,000)
    0.15% p.a.(for $0 and over)
    Yes up to $250,000

    No withdrawals in the month. Bonus rate for first 4 months, reverting to 0.15% rate after*

    Compare
    Details
  • Saver Account

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.10% p.a. (for $0 to $1,000,000)
    0% p.a.(for $0 and over)
    Yes up to $250,000

    Make 5 or more successful card purchases per calendar month using your Up debit card and digital wallets (ATM transactions excluded).

    Compare
    Details
  • Online Saver

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.10% p.a. (for $0 to $500,000)
    0.35% p.a.(for $0 and over)
    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    Compare
    Details
  • Flexi Saver

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    0.25% p.a. (for $0 to $5,000,000)
    0.05% p.a.(for $0 to $5,000,000)
    Yes up to $250,000

    Increase balance by at least $300 in the month

    Compare
    Details

^See information about the Mozo Experts Choice Savings Accounts Awards

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