July savings account snapshot: How to protect your cash as savings rates plummet

The EOFY has come to a rather somber close for Australia’s savers, with savings account rates dropping across the board in June. According to Mozo’s database, the average ongoing savings rate is now 0.71% p.a.

It’s no surprise this average dropped by 3 basis points (bp) over the month. Every change to at-call deposit rates recorded by Mozo in June was a reduction, with two of the big banks trimming their offerings. 

Westpac cut 5bp off its Life account, and 10bp from the eSaver introductory rate, bringing those rates to 1.00% and 0.95% respectively. Meanwhile, ANZ cut 15bp from its Progress Saver account (now 0.85%) and the Online Saver three-month introductory rate (now 0.80%). 

While Macquarie slashed the introductory rate on its Savings Account by 39bp, now down to 2.26%, it is still the highest at-call deposit rate in the Mozo database. Check out the other rate leaders below*.

Account typeCurrent rate leadersRateConditions
Ongoing bonus
86 400 Save Account
1.85%Deposit at least $1,000 monthly or the rate will revert to the base 0.25%
Ongoing bonus
BOQ Fast Track Saver Account 1.85%Deposit a minimum $1,000 and make 5 transactions in a month or the rate will revert to 0.20%
Ongoing bonus
Up Saver Account 1.85%Make 5 transactions a month, or the rate will revert to the base 0.10%
Intro 
Macquarie Savings Account  2.26%  Customers will receive this rate for 4 months, after which it reverts to 1.35%
BaseVolt Bank Savings Account1.65%
This rate is unconditional, and can be accessed on accounts holding up to $245,000

*rates accurate as of July 1

How can you keep your savings growing in the new financial year?

The ongoing barrage of rate cuts might be getting savers’ spirits down, but there are a few tricks to help bolster your savings stash.

Mozo banking expert Peter Marshall says those aiming for shorter-term goals, like financing a long weekend away or buying a new computer, should dig in, do the research and consider introductory offers.

“Be prepared to look around, look beyond the major banks and put in the effort to find out which rates you can take advantage. Perhaps introductory rates or ongoing bonus rates where you can meet conditions.”

Marshall also encourages long-term savers, perhaps those aiming to make a deposit on a property, not to lose heart and keep adding to their savings accounts 

“Don’t forget about cumulative interest. An at-call deposit account generally gets paid interest every month, meaning whatever interest you do get goes straight into your account,” says Marshall. 

“If you can leave it there, you're getting more interest on a larger balance the next month. The more you can do that, the more benefit you get from that cumulative effect.”

Whatever your savings plan is, it’s always important to develop and stick to a budget, and assess all your options. Start by checking out the savings accounts below. 

Savings account options - last updated 22 June 2024

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • 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 four months.

    Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2024 Mozo Experts Choice Award winner.

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    Details
  • PremiumSaver

    5.45% p.a. (for $0 to $250,001)

    1.50% p.a.(for $0 and over)

    Yes up to $250,000

    Increase balance by $200 by the end of each month

    Reward yourself with a higher rate for your good savings habits. Rabobanks’s PremiumSaver is simple - receive the maximum rate when you grow your balance by at least $200 each month (T&Cs apply). Plus, your savings help our Aussie farmers produce the food we love to enjoy.

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  • 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

    For customers who have an Orange Everyday account, deposit $1000 into a personal ING account, make 5 eligible transactions and grow their nominated Savings Maximiser account 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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    Details

^See information about the Mozo Experts Choice Savings Account Awards

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