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 16 October 2021

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • Boost Saver with Go Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.50% p.a. (for $0 to $250,000)
    0.10% p.a.(for $0 and over)
    Yes up to $250,000

    Intro bonus rate of 1.50% for first 3 months, reverting to 1.20% after. Deposit $2,000 each month and make 5 eligible payments from your Go Account. If you are between 18 and 25 deposit $1,000.

    Enjoy a savings account bundled with a spending account. No monthly fees. New customers can earn up to 5000 bonus Virgin Money points on purchases (conditions apply). Benefit together with a joint account

    Details
  • Fast Track Saver Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.05% p.a. (for $1 to $250,000)
    0.05% p.a.(for $1 and over)
    Yes up to $250,000

    Ongoing bonus rate applied if in the previous month $1,000 or more is credited to the linked Day2Day Plus account and 5 eligible transactions are made by the linked account.

    Earn 1.05% p.a. Bonus Interest in the following month on your Fast Track Saver Account balance. Earn Bonus Interest on your savings, with no minimum balance required.

    Details
  • High Interest Savings Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.35% p.a. (for $0 to $250,001)
    0.25% p.a.(for $0 to $250,001)
    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    Kick start your savings with the 4 month introductory variable rate. No fees, no minimum balance, no minimum monthly deposit and no minimum term.

    Details
  • Grow Saver
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    0.65% p.a. (for $0 and over)
    0.10% p.a.(for $0 and over)
    Yes up to $250,000

    Make at least 1 deposit and no more than 1 withdrawal, including internal transfers or external payments.

    Earn a maximum interest rate of 0.65% per year. Pay no monthly fees. Set up in-app savings goals. Benefit with joint account options.

    Details

^See information about the Mozo Experts Choice Savings Account Awards

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