May savings account snapshot: Leading rates plunge below 2.00%

It’ll come as no surprise to savers who’ve been monitoring their dwindling interest returns that rates across savings accounts saw more cuts in May.

The average ongoing savings rate in Mozo’s database now sits at 0.74%, with 38 savings accounts dropping throughout the month. 

April’s rate leader Bank of Queensland has maintained its blue ribbon position with the Fast Track Saver Account, even after dropping 15 basis points to 1.85%. It’s now neck-a-neck with 86 400’s Save Account and Up’s Saver Account, which were both reduced in April to 1.85% but held steady last month.

Where did the Big Four rates land in May?

Westpac was the only big bank to shift savings rates in May, dropping headline rates on both its introductory and ongoing bonus rate products by 25bp. Here’s a breakdown of the current rates offered by the big guns*:

 Major banksCurrent rate
ANZProgress Saver 1.00%
Online Saver 0.95% (intro offer for 3 months)
CommBankGoalSaver 0.50%
NetBank Saver 1.05% (intro offer for 5 months)
NABReward Saver 1.00%
iSaver 1.05% (intro offer for 4 months)
WestpacLife 1.05%
eSaver 1.05% (intro offer for 5 months)

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In the world of unconditional savings, Xinja’s Stash Account is still out in front despite plunging 45 basis points to 1.80%. However, the account remains indefinitely closed to new prospective savers.

Despite the overall downward trajectory for savings rates, May brought some good news to ME Bank’s customers. The pause on having to meet monthly bonus interest conditions for the Online Savings Account was extended in light of COVID-19. Until the end of June, you’ll automatically earn the highest 1.80% p.a. interest rate on balances up to $250,000 without having to make four ‘tap and go’ purchases (as long as you met the monthly criteria prior to lockdown or are a new customer).

If you’re looking to switch accounts to maximise your cash stash, check out the top high interest savings accounts in Mozo’s database.

*Rates accurate as of June 1.