December savings snapshot: Large cuts round out the year
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 February 20, 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 $250,000Bonus 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.
CompareCompareBonus Saver Account
Winner of a Mozo Experts Choice Award 2021 in the Regular Saver category.^ No monthly account fees and no minimum balance requirements.
- account fee per month
- $0.00
- Maximum rate conditions
- 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.
- Access
- BPay, 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 Bonus Saver Account
Hero Saver
Maximum rate
standard interest rate
Govt Deposit Guarantee
0.80% p.a. (for $0 to $250,001)0.01% p.a.(for $0 to $5,000,000)Yes up to $250,000Minimum deposit of $200 and no withdrawals in the month.
CompareCompareHero Saver
Interest is calculated daily and paid monthly. Automatic payment feature. No minimum opening balance needed.
- account fee per month
- $0.00
- Maximum rate conditions
- Minimum deposit of $200 and no withdrawals in the month.
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- -
Read our Mozo Review to learn more about the Hero Saver
Serious Saver
Maximum rate
standard interest rate
Govt Deposit Guarantee
0.80% p.a. (for $0 to $1,000,000)0.05% p.a.(for $0 and over)Yes up to $250,000No withdrawals in the month. Bonus rate for first 4 months, reverting to 0.05% rate after*
CompareCompareSerious Saver
$0 monthly account fee. Link to any Australian bank account.
- account fee per month
- $0.00
- Maximum rate conditions
- No withdrawals in the month. Bonus rate for first 4 months, reverting to 0.05% rate after*
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- -
Read our Mozo Review to learn more about the Serious Saver
Flexi Saver
Maximum rate
standard interest rate
Govt Deposit Guarantee
0.75% p.a. (for $0 to $5,000,000)0.05% p.a.(for $0 to $5,000,000)Yes up to $250,000Increase balance by at least $300 in the month
CompareCompareFlexi Saver
No upfront or ongoing fees. Unlimited free transactions. Great for regular contributions.
- account fee per month
- $0.00
- Maximum rate conditions
- Increase balance by at least $300 in the month (excluding interest)
- Access
- BPay, Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
Read our Mozo Review to learn more about the Flexi Saver
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 $250,000Bonus rate for the first 4 months from account opening
CompareCompareOnline Saver
No account keeping fees. No minimum balance required. Unlimited phone and internet transactions.
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate for the first 4 months from account opening
- 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 Online Saver
*Correct at the time of publishing.
^See information about the Mozo Experts Choice Savings Accounts Awards
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