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.
Compare savings accounts
Macquarie Savings Account
- 5.50% p.a. for the first 4 months (5.00% p.a. ongoing)
- Mozo Experts Choice Award Winner 2024^
The award-winning Macquarie Savings Account offers a cracking intro rate of 5.50% p.a. for the first four months on balances up to $250K. The ongoing rate is a competitive 5.00% 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!
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^.
Compare term deposits
Judo Term Deposit
- 5.15% p.a. for a 6 month term
- 5.00% p.a. for a 1 year term
- Best Term Deposit Winner 2024^
Judo Bank is a multi-year Mozo Experts Choice Awards recipient and offers some of the highest term deposit rates in the Mozo database. There are a range of terms to choose from starting from as short as three months up to five years, with the minimum investment starting at $1,000. Interest can be paid out when the term deposit hits maturity or there’s also an annual or monthly option but these have a slightly lower interest rate. Judo Bank also lets savers have their interest paid to another bank and offers a 0.10% interest rate bonus on rollovers once your deposit reaches maturity. Fees may apply to early withdrawals. Deposits up to $250K backed by Government deposit guarantee.
Newcastle Permanent Term Deposit
- 4.75% p.a. for 6 month term
- Minimum opening deposit of $1,000
- No annual or monthly account keeping fees
Grow your money with a Newcastle Permanent Term Deposit with flexible terms and no annual, monthly or account keeping fees. Start with as little as $1,000 with your interest paid periodically or at maturity. Enjoy access to view your account 24/7 with a handy app and apply online with a speedy 5 minute application.
* Different interest rates apply to different amounts or different interest payment frequencies.
^See information about the Mozo Experts Choice Savings Account Awards
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