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 23 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
  • Online Saver
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.10% p.a. (for $0 to $500,000)
    0.35% p.a.(for $0 and over)
    Yes up 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.

    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
  • 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
  • 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

^See information about the Mozo Experts Choice Savings Account Awards

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