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 type | Current rate leaders | Rate | Conditions |
| 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% |
| Base | Volt Bank Savings Account | 1.65% | 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 - rates updated daily
Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure.
- Citi
1.55% p.a. (for $0 to $500,000)
0.35% p.a.(for $0 and over)
Yesup to $250,000
CitiOnline Saver
1.55% p.a. (for $0 to $500,000)
0.35% p.a.(for $0 and over)
Yesup to $250,000
Bonus rate for the first 4 months from account opening
No account keeping fees. No minimum balance required. Unlimited phone and internet transactions.
- ANZ
0.85% p.a. (for $0 and over)
0.01% p.a.(for $0 and over)
Yesup to $250,000
Bonus interest when you make a single deposit of $10 or more in a month and no withdrawals
DetailsANZProgress Saver
0.85% p.a. (for $0 and over)
0.01% p.a.(for $0 and over)
Yesup to $250,000
Bonus interest when you make a single deposit of $10 or more in a month and no withdrawals
Be rewarded with bonus interest for regular savings of $10 or more and no withdrawals in a month. Set a savings goal in the ANZ app or set up an automated monthly transfer online from your linked ANZ everyday banking account.
- ME
1.55% p.a. (for $0 to $250,000)
0.10% p.a.(for $0 and over)
Yesup to $250,000
Ongoing bonus rate if you make at least four tap & go™ payments per month with your Everyday Transaction Account debit card. Purchases must be processed in calendar month to be eligible for bonus interest.
DetailsMEOnline Savings Account
1.55% p.a. (for $0 to $250,000)
0.10% p.a.(for $0 and over)
Yesup to $250,000
Ongoing bonus rate if you make at least four tap & go™ payments per month with your Everyday Transaction Account debit card. Purchases must be processed in calendar month to be eligible for bonus interest.
No minimum balance and no account keeping fees. Winner of a Mozo Experts Choice Award 2020 in the Regular Saver category .^
- Bankwest
1.25% p.a. (for $0 to $250,000)
0.01% p.a.(for $0 to $5,000,000)
Yesup to $250,000
BankwestHero Saver
1.25% p.a. (for $0 to $250,000)
0.01% p.a.(for $0 to $5,000,000)
Yesup to $250,000
Minimum deposit of $200 and no withdrawals in the month.
Interest is calculated daily and paid monthly. Automatic payment feature. No account maintenance or transaction fees.
^See information about the Mozo Experts Choice Savings Accounts Awards
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