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 24 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.

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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 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.

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  • 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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  • 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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  • 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.

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*Correct at the time of publishing.

^See information about the Mozo Experts Choice Savings Account Awards

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