Is a savings account worth it in 2023?

person poking a piggy bank containing high interest savings accounts

For high interest rate chasers, savings accounts are pretty appealing right now. Following multiple cash rate hikes in 2022, rates have continued to increase. 

It didn’t take us long to come up with five reasons to consider a savings account. Here’s our summary of why savings accounts are still worth it in 2023.

A piggy bank, with extra room

When all is said and done, a savings account is basically a modern day piggy bank with a bit of extra room. It’s a safe place to stash funds out of reach, in preparation for a rainy day. 

In Australia, all authorised deposit-taking institutions (ADIs) are backed by the federal government’s Financial Claims Scheme. In other words, that’s all banks, mutual banks and credit unions. Under the scheme, deposits per customer per ADI are backed by the government up to $250,000. That means that if your bank were to fail, up to $250,000 of your money would be secure. So just like a piggy bank on your bedside table, a savings account is pretty safe. 

Money out of sight, out of mind

As most savings accounts don’t come with a linked debit card, accessing funds at a moment’s notice is harder. Impulse purchases are difficult to make when you don’t have access to an ATM or the option to make tap and go payments. To access savings, usually you will have to transfer them across to an everyday transaction account. 

It’s not ideal to move money out of your savings, and banks will even discourage it. Often you will be hit with either a transfer fee or the interest rate on the savings account will be reduced dramatically. For all these reasons, a savings account really becomes a place to keep money out of sight and out of mind.

Low risk, low maintenance

Compared to share trading and buying on credit, an emergency savings fund is a fairly low risk way to be prepared for tough times. As mentioned above, ADI-licenced banks are backed by the Financial Claims Guarantee scheme too. So if you’re not big on investing or you’re worried about racking up debt with a credit card, a savings account could be a less stress-inducing option.

As well as being low risk, savings accounts are also often low maintenance. The only thing you usually have to remember is to deposit money regularly into your stash. A number of banks even have the option to set up automatic bank transfers, meaning you might not even have to worry about remembering that! 

Savings tools to write home about

In 2023 there are many savings account that come with nifty tools to help you stash cash. Features that come with some accounts these days include roundup tools, spending insights and reminders to pay money in.

These extra features can encourage you to save more and regularly. Things like spending trackers and insights are also useful to help paint a bigger picture of what you spend your money on, on a daily basis. You could even use the insights to help you cut back.

A bit of interest on the side

Finally, while rates are low at the moment, it is still possible to earn a bit of interest on your savings. For example, at the moment the average ongoing interest rate for savings accounts tracked in the Mozo database is 2.48% p.a.* 

Looking for a new savings account? Then head to Mozo’s compare savings accounts page to review what accounts are on offer right now.

Compare savings accounts

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 274 savings accounts.
Last updated 14 September 2024 Important disclosures
  • Savings Account

    5.35% 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 4 months.

    Enjoy a high interest savings account with no account keeping fees to pay. Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace. Multiple 2024 Mozo Experts Choice Award winner.

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    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. No Account keeping fees. No minimum balance. Support Aussie farmers with every dollar you save.

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    Details
  • Mozo Expert Choice Badge
    Savings Maximiser

    5.50% p.a. (for $0 to $100,000)

    0.55% p.a.(for $0 and over)

    Yes up to $250,000

    Deposit $1,000 into a personal ING account, make 5 eligible transactions with a linked Orange Everyday account and grow the balance each month.

    Great variable rate every month when you grow your balance each month in addition to other eligibility criteria. No ING fees to pay. Save even more with ING Everyday Round Up. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^

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  • Growth Saver Account

    5.05% p.a. (for $0 and over)

    0.35% p.a.(for $0 and over)

    Yes up to $250,000

    Grow your net balance by at least $200 (excluding interest) and make no more than one withdrawal in the month.

    Grow your savings goals with no monthly account keeping fees to pay. To get the bonus interest simply grow your net balance by at least $200 a month (excluding interest) and make no more than one withdrawal during the month. No debit card, ATM, eftpos or personal cheque access with this account Suncorp Bank (Norfina Limited ABN 66 010 831 722 AFSL 229882 Australian Credit Licence 229882). The SUNCORP brand and Sun Logo are used by Suncorp Bank (Norfina Limited) under licence and Suncorp Bank is not part of the Suncorp Group.

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  • MoneyMAX Account

    No Current Offer

    4.75% p.a.(for $1 and over)

    Yes up to $250,000

    Unlimited access 24/7 via Banking App, Phone & Internet Banking. Interest is calculated daily and paid monthly. No transaction fees or monthly service fees. No minimum balance or withdrawal restrictions. Online access only.

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*Average based on savings accounts tracked in the Mozo database, correct as of 12 January 2023.


^See information about the Mozo Experts Choice Savings Account Awards

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