How to triple the interest on your savings today
For Aussies stashing away hard-earned cash, whether for a holiday overseas or a first home, it can be frustrating to watch your savings pile grow at a much slower pace than you’d hoped. But Mozo data shows there’s an easy way to close the gap between you and your goal: by trading in your old savings account for a better deal, you could be tripling the amount of interest you earn per year.
According to Mozo’s database, the average ongoing base interest rate in July 2019 is 0.61% while the highest ongoing base rate is 2.00%. Switching from the average to the highest base rate would bump up your annual interest by about 228%.
This means that if you moved $10,000 to a savings account with the highest base rate and made monthly deposits of $500 over 5 years, you would be earning $1,810, or over 3 times, more interest than you otherwise would with the average base rate.
“With savings account interest rates at a real low point, it’s vital to be shopping around and to be prepared to leave a bad deal for a better one,” said Mozo Director, Kirsty Lamont.
“There’s no point staying loyal to banks that offer poor rates on their savings accounts. You could be pocketing a whole lot more money just by making a simple switch.”
How to snatch up good interest rates
If you’re afraid that the search for a better-value savings account might cause too much hassle, don’t worry - the process is simple! Here are two ways to get you started:
1. Negotiate with your bank
You’re probably comfortable with walking into a store and asking the retailer for their best price, so why not do the same for your bank? Calling up your bank and negotiating a higher rate for your savings account could land you a better deal and earn you more interest as you save up for your holiday, your first home or any other long-term goal.
RELATED LINK: How to haggle - tips for negotiating a better deal
But be sure to do your research first so you’re well-informed about the current market. Check out all your options and see how your bank stacks up against them by using our savings account comparison table.
2. Switch to another savings account
If you can’t reach a negotiated rate you’re happy with, be ready to walk away and move your cash stash to a savings account with a higher interest rate. After you’ve compared your current bank with others in the market and found an account that suits you, all you’ll have to do is:
- Open the new account
- If you have direct debits coming out of your account, or direct transfers going into it, transfer these over
- Transfer your remaining funds
- Close your old account
Sounds simple enough, right? Check out our high interest savings accounts comparison table to find the best deals for you, and make the switch today.
High interest savings accounts - rates updated daily
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.
Winner of a Mozo Experts Choice Award 2021 in the Regular Saver category. No monthly account fees and no minimum balance requirements.
Bonus 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
Serious Saver
Maximum rate
standard interest rate
Govt Deposit Guarantee
0.30% p.a. (for $0 to $1,000,000)0.15% p.a.(for $0 and over)Yes up to $250,000No withdrawals in the month. Bonus rate for first 4 months, reverting to 0.15% rate after*
$0 monthly account fee. Link to any Australian bank account.
Serious 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 0.15% rate after*
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- -
Read our Mozo Review to learn more about the Serious Saver
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.
Interest is calculated daily and paid monthly. Automatic payment feature. No minimum opening balance needed.
Hero 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
Flexi Saver
Maximum rate
standard interest rate
Govt Deposit Guarantee
0.25% 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
No upfront or ongoing fees. Unlimited free transactions. Great for regular contributions.
Flexi 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
No account keeping fees. No minimum balance required. Unlimited phone and internet transactions.
Online 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
^See information about the Mozo Experts Choice Savings Accounts Awards
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