# How much could I potentially save over 10 years at an average savings rate?

Many of us have savings accounts where our cash earns interest. Over the long term, the impact of time and compound interest can be substantial. However, as savings accounts have variable rates, it's difficult to get an accurate number (unless you have a crystal ball).

That said, it isn’t a useless exercise. Knowing how much potential your cash has when put to work can help keep you focused on your long-term financial goals.

## How much does an average savings rate make?

Before we tackle the savings rate, it’s important to acknowledge how we came to these numbers. As you may know, Mozo tracks over 200 savings accounts. So, using our database, the team found some averages across all savings account categories such as bonus, base, and intro rate.

 Account Type All Personal Big 4 All Ongoing 3.57% 3.44% Only Bonus Rate Savers 4.64% 4.79% Only Introductory Rates 5.08% 4.69% Only Unconditional Rates 1.37% 1.62%

As we’ve recently had one of the fastest rate hikes periods in history, these numbers may not be indicative of the long term. Therefore, we’ll have a look at the all ongoing average and calculate how that will compound over time.

Here are the results for a 10 year savings account balance at an interest rate of 3.57% p.a. and a \$5,000 deposit.

Using Mozo’s savings calculator, we can see that our ending balance is \$7,141. This is a significant amount, but it could be even higher if you added monthly deposits. Your balance would be this much better with the following monthly deposit amounts.

 Monthly Deposit Amount Interest Earned Final Balance \$100 \$4,537 \$21,537 \$250 \$8,131 \$43,131 \$500 \$14,121 \$79,121

While the amount of interest earned does go up, it's important to note that sustained deposits over a long period add up. For instance, you could use the final balance for a home loan deposit.

### Savings account rate comparison

Another helpful metric is to compare two savings account products and map out these 10 years. For instance, we’ll use the Bank of Queensland Smart Saver Account at 5.00% p.a. versus the ANZ Plus Save at 4.90% p.a. with both starting balances of \$5000.

 Account Name Interest rate Requirements/Restrictions Balance after 10 years Bank of Queensland Smart Saver Account 5.00%(0.05% base rate) \$1000 a month and 5 eligible transactions with a linked BOQ account \$1002 (no extra deposits)\$59,119 (\$1000 deposits) ANZ Plus Save 4.90% \$250,000 account limit \$6,080 (no extra deposits)\$58,988 (\$1000 deposits)

Since the BOQ account needs a deposit to get the full extra rate, we’ve added two outcomes. As you can see, low base rates are one of the risks that you’ll need to keep in consideration as any months you miss a deposit will result in less interest.

Overall—while interest rates are important to how much you earn—it seems that regular deposits also help a lot in building up your account balance. If you want to be sure how much interest you’ll be earning over a long period, then a term deposit may be worth considering.

So, if you’re ready to check out some high interest savings accounts, then head over to our hub pages. You can also check out and compare some savings accounts in the table below…

## Savings account comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 274 savings accounts.
Last updated 11 August 2024
• ###### 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.

Competitive introductory variable rate for first 4 months (on deposits up to \$250,000). No account keeping fees to pay. Multiple 2024 Mozo Experts Choice Award winner.

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• ###### Savings Maximiser

5.50% p.a. (for \$0 to \$100,000)

0.55% p.a.(for \$0 and over)

Yes up to \$250,000

For customers who have an Orange Everyday account, deposit \$1000 into a personal ING account, make 5 eligible transactions and grow their nominated Savings Maximiser account 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.^

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• ###### Online Savings Account

5.20% p.a. (for \$0 and over)

1.00% p.a.(for \$0 and over)

Yes up to \$250,000

bonus rate for the first 3 months from account opening

Earn interest on your savings with a competitive introductory bonus rate. No minimum monthly deposit required to earn interest. No account keeping fees. No minimum opening balance. Manage your account 24/7.

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• ###### 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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• ###### Life - 18-29 years old

5.20% p.a. (for \$0 to \$30,000)

2.00% p.a.(for \$0 and over)

Yes up to \$250,000

Make 5 eligible card purchases per month with a Westpac Choice account and min 1 deposit and higher balance than at the beginning of the month in Life savings account.

Are you 18 - 29 years of age? Earn up to a generous variable interest rate on your savings when you spend and save with Westpac. For individuals aged 18 to 29 on Westpac Life account balances up to \$30,000.

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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

Bonus rate when at least \$20 is deposited each month and five Visa Debit transactions are made each month using linked Glide transaction account.

Start saving and earn interest with just a \$20 deposit and make 5 eligible transactions each month. No fees or penalties for withdrawing money.

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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 ING personal savings customers receive an introductory bonus 0.70% p.a. variable kick starter rate for the first 4 months on balances up to \$500,000. Reverts to variable ongoing rate.

Get a high variable interest rate on balances over \$50,000, and an even higher rate on balances over \$150,000. Rate applies to your whole balance. 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.^

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^See information about the Mozo Experts Choice Savings Account Awards

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