Continued bank branch closures and the rise of online banks
![](http://cdn.mozo.com.au/redactor/pictures/8849/closed_for_business_original.jpg)
It’s quite likely that you’ve noticed a number of bank branches quietly closing down over the past few years in your area, town or even city. Or if banks aren’t on your radar much because you do all your banking online, you may have found it harder and harder lately to find an ATM, for that once in a blue moon time you want to get hold of some actual cash.
Well according to statistics released by the Australian Prudential Regulation Authority last week, physical bank branches have been reducing in numbers all over the country in the past few years.
The APRA’s ‘Points of Presence’ statistics showed that the number of bank branches in major cities across Australia has gone down by approximately 9% in just two short years. Further to that the number of bank branches available across each state also seems to be in steady decline, with Queensland notably losing as much as 11% of its bank branches between 2017 and 2019.
Why are more and more bank branches closing down?
Mozo Banking Expert Peter Marshall said, “the harsh reality of the world we live in these days is that bank branches are less and less relevant. One of the main purposes of banks having branches has been to meet the needs of customers who use cash, and as cash is in serious decline as a payment method, there is simply less of a requirement for them”.
RELATED ARTICLE: Digital banking and neobanks
Online banks vs ‘non-online’ banks and the Big Four
This “evolution of banking” as Marshall referred to it as, could be an opportunity for many Australians to jump ship and take advantage of all the perks online banks and neobanks have to offer.
As well as giving you access to your banking 24/7, online banks often offer more competitive interest rates than banks with physical branches and many have accounts with zero monthly account keeping fees.
In fact, online banks currently take out 3 of the top 5 spots in the Mozo database for the maximum interest to be earned on a bonus savings account**, with neobanks 86 400 and Up Bank currently tied for 2nd place and online bank ME coming a close third.
The average maximum interest rate for a bonus savings account with an online bank currently stands at 1.98% p.a. which is significantly higher than the average 1.61% p.a.* maximum interest rate offered on a bonus savings account with all other ‘traditional’ banks, or in other words banks with physical branches.
What’s more, the average maximum interest rate offered for a bonus savings account with one of the big four is even lower, currently standing at 1.44% p.a. That’s a hefty 0.54% p.a. less than the average interest to be earned with an online bank for the same type of savings account.
Online Bank bonus saver accounts in the top 5:
- 86 400 Save Account : maximum interest rate of 2.25% p.a when you deposit at least $1,000 once a month into either your Pay or Save Account.
- Up Bank Saver Account: maximum interest rate of 2.25% p.a.when you make 5 or more purchases through your Up everyday transaction account each month.
- ME Bank Online Savings account: maximum interest rate of 2.20% p.a. when you make 4 tap and go purchases with your ME everyday transaction debit card.
Traditional Bank bonus saver accounts in the top 5:
- MyState Bank Bonus Saver Account: maximum 2.50% p.a. interest rate when you make at least 5 purchases throughout the month through a linked everyday account and deposit at least $20.
- Bank of Queensland Fast Track Saver Account: maximum interest rate of 2.15% p.a. when you transfer at least $1,000 each month into your corresponding Day2Day Plus transaction account.
How much can you save by switching to an online bank?
Let’s break it down using Mozo’s Savings Calculator.
Say you open a bonus savings account with a starting balance of $5,000, deposit $200 per month and meet all the relevant criteria to achieve the maximum interest rate. With an online bank on average you would earn approximately $122 of interest over the course of the year and your closing balance would be $7,522.
Now take the same situation but you open your bonus savings account with a non-online bank. With the same amount of money and the same amount of deposits each month, you would earn approximately $99 worth of interest and your closing balance would be $7,499.
Lastly, imagine you have the exact same situation but this time you open a bonus savings account with one of the big four. On average you would earn approximately $88 of interest over 1 year and have a closing balance of $7,488.
That’s $34 worth of interest that’s better off in your pocket than the big banks' profit sheet.
Seize the day!
So if you’re ready to channel some good ol’ carpe diem and seize a higher interest rate for your savings, check out the bonus savings accounts below or head to Mozo’s savings account comparison page to see if you could be getting a better deal.
Compare bonus saver accounts
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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 4 months.
Enjoy a high interest savings account with no account keeping fees to pay. Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace. Multiple 2024 Mozo Experts Choice Award winner.
CompareCompareSavings Account
Enjoy a high interest savings account with no account keeping fees to pay. Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace. Multiple 2024 Mozo Experts Choice Award winner.
- Maximum rate
- 5.35% p.a. (for $0 to $250,000)
- Standard interest rate
- 4.75% p.a.(for $0 to $1,000,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- Standard interest rate
- 4.75% p.a.(for $0 to $1,000,000)
- Account fee per month
- $0.00
- Access
- BPay, Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must have a Macquarie Transaction Account to link with.
Read our Mozo Review to learn more about the Macquarie Savings Account
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Mozo experts choice awards won:
- High Interest Savings - 2024
Savings Maximiser
5.50% p.a. (for $0 to $100,000)
0.55% p.a.(for $0 and over)
Yes up to $250,000
Deposit $1,000 into a personal ING account, make 5 eligible transactions with a linked Orange Everyday account and grow the balance each month.
Great variable rate every month when you grow your balance each month in addition to other eligibility criteria. No ING fees to pay. Save even more with ING Everyday Round Up. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
CompareCompareSavings Maximiser
Great variable rate every month when you grow your balance each month in addition to other eligibility criteria. No ING fees to pay. Save even more with ING Everyday Round Up. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
- Maximum rate
- 5.50% p.a. (for $0 to $100,000)
- Standard interest rate
- 0.55% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- Standard interest rate
- 0.55% p.a.(for $0 and over)
- Account fee per month
- $0.00
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must be linked to an Orange Everyday transaction account to receive the bonus rate. Where multiple Savings Maximiser Accounts are held, the bonus rate is only applied to one nominated account.
Read our Mozo Review to learn more about the ING Savings Maximiser
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MoneyMAX Account
No Current Offer
4.75% p.a.(for $1 and over)
Yes up to $250,000
Unlimited access 24/7 via Banking App, Phone & Internet Banking. Interest is calculated daily and paid monthly. No transaction fees or monthly service fees. No minimum balance or withdrawal restrictions. Online access only.
CompareCompareMoneyMAX Account
Unlimited access 24/7 via Banking App, Phone & Internet Banking. Interest is calculated daily and paid monthly. No transaction fees or monthly service fees. No minimum balance or withdrawal restrictions. Online access only.
- Maximum rate
- No Current Offer
- Standard interest rate
- 4.75% p.a.(for $1 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- Standard interest rate
- 4.75% p.a.(for $1 and over)
- Account fee per month
- $0.00
- Access
- BPay, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Branch access for deposits only.
Read our Mozo Review to learn more about the Unity Bank MoneyMAX Account
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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
Deposit at least $20 each month and make 5 Visa Debit transactions with a linked Glide account.
Open a Bonus Saver Account in under 5 minutes. There are no fees to pay or penalties for withdrawing money. Get a seamless personalised insights and online statements via the My State Bank app.
CompareCompareBonus Saver Account
Open a Bonus Saver Account in under 5 minutes. There are no fees to pay or penalties for withdrawing money. Get a seamless personalised insights and online statements via the My State Bank app.
- Maximum rate
- 5.00% p.a. (for $0 to $250,000)
- Standard interest rate
- 0.05% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- Standard interest rate
- 0.05% p.a.(for $0 and over)
- Account fee per month
- $0.00
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read our Mozo Review to learn more about the MyState Bank Bonus Saver Account
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Savings Accelerator
3.55% p.a. (for $0 to $50,000)
2.85% p.a.(for $0 to $50,000)
Yes up to $250,000
New customers receive an introductory bonus 0.70% p.a. variable kick starter rate for the first 4 months on balances up to $500,000.
Enjoy the flexibility to access your funds with no monthly deposit requirements or lock-in terms. No ING fees to pay. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
CompareCompareSavings Accelerator
Enjoy the flexibility to access your funds with no monthly deposit requirements or lock-in terms. No ING fees to pay. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
- Maximum rate
- 3.55% p.a. (for $0 to $50,000)
- Standard interest rate
- 2.85% p.a.(for $0 to $50,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- Standard interest rate
- 2.85% p.a.(for $0 to $50,000)
- Account fee per month
- $0.00
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read our Mozo Review to learn more about the ING Savings Accelerator
Your selected savings accounts
Your selected savings accounts
Your selected savings accounts
Your selected savings accounts
Your selected savings accounts
*Average interest rates for bonus savings accounts gathered from the Mozo database and based on a bonus savings account with a balance of $10,000. Averages correct as of Monday 28th October, 2019.
**Maximum interest rates for bonus savings accounts with a balance of $10,000. Correct as of Monday 28th October, 2019.
^See information about the Mozo Experts Choice Savings Account Awards
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