June savings snapshot: Low interest rates and Federal Budget support

People sitting at a desk looking over personal finance documents to calculate savings interest at tax time.

The trend of slow and steady interest rate reductions on savings accounts continued last month, with 10 cuts to ongoing bonus rates recorded by Mozo’s data team.

We did see one rate increase from MyState Bank, which brought its MyState Bonus Saver Account up 10 basis points to 1.20%. Customers can access this rate – which is the third highest savings interest rate without age restrictions in Mozo’s database – when they deposit $20 and make five debit transactions each month.

These changes kept the average ongoing bonus interest rate at 0.44% (the same as April’s figure), and left the big banks at their usual lower average of 0.21% in May.

What does the 2021 Federal Budget mean for your savings?

The highlight of the financial calendar in May is the unboxing of the Federal Budget. While it still doesn’t look like the RBA will budge on the cash rate, there were a few measures in the 2021/2022 Budget which could help boost savings accounts.

For starters, the Low and Middle Income Tax Offset which was set to expire next month has been extended for another year. This means earners with a taxable annual salary between $37,000 and $126,000 will continue to see tax rebates between $255 and $1,080 over the next financial year.

The government has also announced new or extended support packages for first home buyers, which could make saving for a property deposit a little easier. And if you’ve got a few rugrats who are not quite school age yet, you may see more savings as $1.7 billion has been added to the childcare subsidy.

How to get the most out of your tax return

Finance worker bees get busy in June as the end of financial year approaches, but it’s also a good time for all workers to ensure they’re getting every dollar they can out of their tax return. 

Check out these surprising things you can claim on tax, and research what does and doesn’t qualify as a tax deduction when you’re working from home as a starting point.

Then, make sure you’re getting a bumper return on your tax savings with these high interest-earning accounts.

Compare high interest savings accounts - last updated 20 April 2024

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • 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 . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.

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  • Mozo Expert Choice Badge
    Reward Saver

    5.25% p.a. (for $0 to $100,000)

    0.30% p.a.(for $0 and over)

    Yes up to $250,000

    Earn a high interest bonus rate if you hold an eligible transaction account and meet the bonus rate conditions (T&Cs apply). Only requires $1 to open. Free e-banking transactions. No monthly service fees to pay. Access your account via e-banking or the Bendigo Bank app. Not applicable to business customers.

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  • 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 2023 Mozo Experts Choice Award winner.

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  • High Interest Save Account

    5.10% p.a. (for $0 to $250,000)

    0.10% p.a.(for $0 and over)

    Yes up to $250,000

    Deposit at least $200 to either Spend, Bills or Save account from an external source each month.

    No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.

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  • Reward Saver Account

    5.25% p.a. (for $0 to $1,000,000)

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

    Yes up to $250,000

    Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.

    Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.

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^See information about the Mozo Experts Choice Savings Account Awards

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