How to triple the interest on your savings today

Looking to stash your hard-earned cash? Whether it’s for a holiday overseas or a first home, it can be frustrating to watch your savings pile grow at a snail's pace. 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. 

Since the RBA started hiking rates, savings accounts have been consistently showing some Decent increases. According to Mozo’s database, the average unconditional rate in August 2023 is 1.28% while the highest bonus rate is an impressive 5.65%. So, switching from the average unconditional to the biggest bonus rate is a difference of 4.37%. 

But how long will savings account interest rates stay where they are? Mozo banking expert, Peter Marshall, says that savings rates are likely to stay steady unless the banks decide they haven’t had enough deposits. “If they do come down, I don’t think it will be by much—not until the RBA is getting closer to cutting the cash rate”. 

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 super simple! Here are two ways to get you started: 

1. Negotiate with your existing bank

You’re probably comfortable 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 potentially land you a better deal and earn you more interest as you save up for your long-term goal. 

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. Online applications and transfers have now made this process easier and more convenient than before. There’s no need to visit bank branches as everything from the sign up to transfer can be done quickly online.  

You might also be wondering, how do you know that you’re getting the best rate possible? Utilising comparison sites like Mozo can be a great way of finding savings accounts with a higher rate in the market. By comparing, you’ll also get a good idea about fees and conditions so that you can get the account (and importantly interest rate) that’s suitable for your situation. 

After you’ve found an account that suits you, all you’ll have to do is: 

• Open the new savings 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 account that could be earning you a higher rate.