December savings snapshot: Large cuts round out the year

Worried person on the phone looking at a savings account bank statement as interest rates drop.

It’ll come as no surprise to scrupulous savers that savings account interest rates have taken yet another month-on-month plunge. 

December has a less-than-merry outlook with the average ongoing savings rate in Mozo’s database now sitting at 0.48%*. 

This is after the Mozo researchers recorded 44 cuts to ongoing bonus rates and 16 cuts to introductory rates over the last month.

Introductory savings take a hit

If you’ve been bank hopping to seek out a more attractive introductory rate for your nest egg, there’s more bad news. These short-term interest rates have seen even more substantial reductions recently. 

On average, affected introductory savings rates saw cuts of 23 basis points (bp) compared to an average of 16bp for ongoing bonus rates.

The top intro offer in Mozo’s database, the Rabobank High Interest Savings Account, is a relatively high 1.75%. Meanwhile, the average introductory rate has fallen to 0.84%*.

Savers chasing introductory dreams should always remember to keep an eye out for low revert rates after the initial period (the Rabobank rate falls to 0.30% after the first four months).

Other ways to save this Christmas and beyond

You might not be feeling particularly jolly in light of this news, but regardless of interest rates there’s always something you can do to help boost your savings (beyond Christmas miracles).

Some 2020 savings suggestions from the Mozo team include:

  • Planning budget-friendly holiday activities. Yes, the festive season can be costly but there are ways to have fun for free (or close to it). So investigate everything from summer freebies to adventure investments. 
  • Getting proactive with your savings plan. High interest rates are great, but there’s more than one way to make your money work for you. Read about round ups, savings buckets, debt clearing and more.
  • Switching banks if you’re not getting bang for buck. Inertia is real, whether it’s about purchasing a Secret Santa gift or changing bank accounts. If you can identify and get beyond some common misconceptions about switching banks, you could be set to save a whole lot more dough. 

If you’re ready to make the switch, check out some of the high interest savings accounts below.

Compare high interest rate savings accounts - last updated 18 September 2021

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Bonus Saver Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.10% 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 Everyday or Glide transaction accounts.

    Winner of a Mozo Experts Choice Award 2021 in the Regular Saver category. No monthly account fees and no minimum balance requirements.

    Details
  • Boost Saver with Go Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.50% p.a. (for $0 to $250,000)
    0.10% p.a.(for $0 and over)
    Yes up to $250,000

    Intro bonus rate of 1.50% for first 3 months, reverting to 1.20% after. 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 savings account bundled with a spending account. No monthly fees. New customers can earn up to 5000 bonus Virgin Money points on purchases (conditions apply). Benefit together with a joint account

    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

    No account keeping fees. No minimum balance required. Unlimited phone and internet transactions.

    Details
  • Grow Saver
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    0.65% p.a. (for $0 and over)
    0.10% p.a.(for $0 and over)
    Yes up to $250,000

    Make at least 1 deposit and no more than 1 withdrawal, including internal transfers or external payments.

    Earn a maximum interest rate of 0.65% per year. Pay no monthly fees. Set up in-app savings goals. Benefit with joint account options.

    Details
  • Savings Maximiser
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.35% p.a. (for $0 to $100,000)
    0.05% p.a.(for $0 and over)
    Yes up to $250,000

    For customers who have an Orange Everyday and in each month deposit at least $1,000 into a personal ING account, make at least 5 settled card purchases using the linked ING debit card and grow the account balance.

    No ING fees. Great variable rate every month when you grow your balance each month in addition to other eligibility criteria.

    Details
  • High Interest Savings Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.35% p.a. (for $0 to $250,001)
    0.25% p.a.(for $0 to $250,001)
    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    Kick start your savings with the 4 month introductory variable rate. No fees, no minimum balance, no minimum monthly deposit and no minimum term.

    Details

*Correct at the time of publishing.

^See information about the Mozo Experts Choice Savings Account Awards

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