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 - last updated 24 February 2024

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • 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.

    Compare
    Details
  • 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 . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.

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    Details
  • Hero Saver

    4.60% p.a. (for $0 to $250,001)

    1.00% p.a.(for $0 to $5,000,001)

    Yes up to $250,000

    Minimum deposit of $200 and no withdrawals in the month.

    Earn a generous variable rate on balances up to $250,001 each month you deposit at least $200 (excluding interest) on or before the last business day each month and make no withdrawals during the month. $0 account maintenance fees. Create a goal, set up regular deposits and track your progress on the Bankwest app.

    Compare
    Details
  • Mozo Expert Choice Badge
    Savings Account

    5.50% 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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    Details
  • Reward Saver

    5.25% p.a. (for $0 to $100,000)

    0.30% p.a.(for $0 and over)

    Yes up to $250,000

    Earn a high interest bonus rate if you hold an eligible transaction account and meet the bonus rate conditions (T&Cs apply). Only requires $1 to open. Free e-banking transactions. No monthly service fees to pay. Access your account via e-banking or the Bendigo Bank app. Not applicable to business customers.

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    Details
  • 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 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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    Details
  • Mozo Expert Choice Badge
    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.

    Compare
    Details

^See information about the Mozo Experts Choice Savings Account Awards

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