How to triple the interest on your savings
With inflation at an all time high and the cost of living having a choke-hold on many Australian families, it’s time to think smarter when it comes to making your money work harder for you. So what better time to boost your savings interest rate with a few smart moves that could triple your returns?
Firstly, consider switching to a high-interest savings account. This small change can significantly increase your earnings. Introductory rates are also worth exploring as your savings get an immediate boost. Intro rates typically last for only a few months so it’s important to also review the account base rate to make sure that after the initial period your savings rate remains competitive.
According to Mozo’s database, the average unconditional rate in June 2024 is 1.40% p.a. while the average bonus rate is 4.61% p.a^. So, switching from the average unconditional to bonus is a difference of 3.21% p.a., effectively tripling the possible savings you could make.
Keep in mind however, that if conditions are not met on a bonus rate savings product, base rates which are much lower than bonus rates will apply. And conditions can vary between these savers, so always be sure to check them. They can include, having a linked transaction account with the same bank, making minimum monthly deposits or not making any withdrawals.
Term deposits can also be a great option. By locking your funds away for a set period, you don’t have to worry about market fluctuations. Your money will be safely stashed and growing without you having to lift a finger.
Stay ahead by regularly reviewing and switching your savings accounts. Banks frequently adjust their rates, but unfortunately loyalty doesn’t pay in the savings game, so don’t hesitate to compare. By staying flexible and ready to move your money to where it earns the most, you can maximise your returns.
Check out Mozo’s top picks for savings and term deposits that could help you increase your returns. But always remember, it is important to do your own research for any risks when switching to another provider.
^ The average rates mentioned in this article are based on a savings balance of $10,000.
ING Savings Maximiser
- 5.50% p.a. Maximum interest rate
- No account keeping fees
- High Interest Savings Winner- Mozo Experts Choice Award 2024
The ING Savings Maximiser’s 5.50% maximum interest rate is hard to beat. You can earn a high bonus rate of interest when you make 5 card purchases on your linked ING translation account, deposit at least $1,000 and grow your balance every calendar month. The maximum interest rate is available on balances up to $100,000 and there are no monthly account fees.If bonus interest conditions are not met in a calendar month, the standard variable rate of 0.55% p.a. will apply in the next calendar month. Mozo Experts Choice Award winner^.
uBank High Interest Save Account
Start your savings journey with no monthly fees to pay on any of your save accounts and you can split your money with up to 10 Save accounts with the uBank High Interest Savings Account. You’ll be able to set savings targets and track the progress of all your Save accounts too. Deposits guaranteed up to $250K per customer.
Macquarie Savings Account
- 5.35% p.a. for the first 4 months (4.75% p.a. ongoing)
- Mozo Experts Choice Award Winner 2024^
The award-winning Macquarie Savings Account offers a cracking intro rate of 5.35% p.a. for the first four months on balances up to $250K. The ongoing rate is a competitive 4.75% p.a. and there are zero account keeping fees. You'll need to open a Macquarie Transaction Account as a first step, but once that's done you can open as many linked Savings Accounts as you like using the Macquarie mobile banking app - one for each savings goal!
Rabobank High Interest Savings Account
This award-winning account from Rabobank offers a cracking introductory rate of 5.75% p.a. for the first four months on balances up to $250K, and the ongoing rate is a competitive 4.40% p.a.. There are no pesky minimum balance or minimum deposit requirements, and as there are also no account fees you can enjoy both hassle-free and fee-free saving.
IMB Bank Reward Saver Account
IMB’s Reward Saver account is an accessible, simple, no frills savings account that is designed to help you save. You can grab up to 5.25% p.a. for the first four months from opening the account, after which as long as you make a monthly deposit of $50 or more and no withdrawals you’ll get an ongoing rate of 3.25% (T&Cs apply). What’s more, there are also no account keeping fees and the ability to access real time payments through Osko. Transaction fees may apply.
^See information about the Mozo Experts Choice Savings Account Awards
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