More big 4 cuts as Westpac slashes savings account rates

Less than a month after ANZ slashed rates for its Online Saver account, Westpac has become the latest big four bank to cut interest rates on its savings accounts. Of course the good news is, there are still more competitive rates around, if you know where to look.
As of this morning, Westpac has cut rates on both its Westpac Life Account and Westpac eSaver Account. With the bonus rate dropping from 1.20% p.a. to 1.10% p.a., the maximum ongoing interest rate for Westpac’s Life Account has now dropped from 1.65% p.a. to 1.55% p.a.
The Westpac eSaver was hit even harder, with the five month introductory rate dropping to 1.45% p.a., leaving savers with a maximum rate of 1.55% p.a. for the first five months (0.10% p.a. ongoing).
This marks the latest in a string of savings cuts from the big four in 2020, starting in January with NAB’s slashed interest rates to its iSaver and Reward Saver accounts.
Westpac savers may take heart from the fact that ongoing rates for these two accounts are still notably higher than the average big 4 ongoing rate for savings accounts, although at 0.82%, the bar is set pretty low. In fact, the average ongoing rate for up-and-coming online/app-based banks is more than twice that, at 1.73%*.
Neobanks take on the big four
So where can you find a more competitive rate in the new decade? While it’s no secret that savings rates aren’t as good as they were ten years ago, especially after multiple cuts to the official cash rate last year, it is still possible to find a more competitive interest rate for your savings stash.
In the past few years, neobanks and online banks have really taken the lead on savings’ interest rates. Currently the top savings bonus and base rates to be found in the Mozo database, are all with neobanks**.
RELATED ARTICLE: Neobank Report 2020: Digital banking in a new decade
App-based banks 86 400, Up Bank and Xinja are right now tied in the top spots in the Mozo database for the highest bonus saver and base rates, all offering ongoing interest rates as high as 2.25% p.a.
- 2.25% p.a. no-strings-attached base rate.
- There are no conditions to achieve this rate! That’s right, as this is a base rate you can earn 2.25% p.a. on balances up to $245,000 without having to jump through any hoops, such as making a minimum deposit each month or making a certain amount of card payments regularly to get it.
- Maximum ongoing interest rate of 2.25% p.a. on balances up to $300,000. This is made up of a base rate of 0.40% p.a. and a bonus rate of 1.85% p.a.
- You’ll have to deposit at least $1,000 per month into either your savings account or 86 400 Pay Account to achieve the full 2.25% annual interest rate.
- The Up Saver Account comes with a base rate of 0.50% p.a. and a maximum ongoing rate of 2.25% p.a., available on balances up to $50,000.
- The full 2.25% p.a. interest comes as a no-strings-attached rate for the first four months, after which you can still earn it by making five successful card purchases each month with your linked Up Bank Everyday Account.
So, feel like giving your savings stash a new lease of life? Why not head to Mozo’s savings accounts comparison page to see what other interest rates are out there. Or if you’re keen to learn more about the future of banking, why not head to our neobanks hub to see what digital or online banks are currently available in Australia. Here’s to a 2020 with better savings rates!
*Average interest rates taken from the Mozo database, correct as of Wednesday 5th February 2020.
**Information correct as of Thursday 13th February 2020.
Compare bonus saver accounts - last updated 8 December 2023
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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.
CompareCompareReward Saver Account
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.
- Maximum rate
- 5.25% p.a. (for $0 to $1,000,000)
- Standard interest rate
- 0% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- Standard interest rate
- 0% p.a.(for $0 and over)
- Account fee per month
- $0.00
- Access
- ATM, EFTPOS, Visa Debit, Cheque book, BPay, Branch access, Phone banking, Internet banking, Bank@Post
- Minimum balance
- $0.00
- Other restrictions
- -
Read our Mozo Review to learn more about the IMB Bank Reward Saver Account
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Mozo experts choice awards won:
- No Strings Savings - 2023
Savings Account
5.50% 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.
CompareCompareSavings Account
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.
- Maximum rate
- 5.50% p.a. (for $0 to $250,000)
- Standard interest rate
- 4.75% p.a.(for $0 to $1,000,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- Standard interest rate
- 4.75% p.a.(for $0 to $1,000,000)
- Account fee per month
- $0.00
- Access
- BPay, Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must have a Macquarie Transaction Account to link with.
Read our Mozo Review to learn more about the Macquarie Savings Account
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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.
CompareCompareReward Saver
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.
- Maximum rate
- 5.25% p.a. (for $0 to $100,000)
- Standard interest rate
- 0.30% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- Standard interest rate
- 0.30% p.a.(for $0 and over)
- Account fee per month
- $0.00
- Access
- BPay, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- -
Read our Mozo Review to learn more about the Bendigo Bank Reward Saver
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Mozo experts choice awards won:
- Kick Start Savings - 2023
- No Strings Savings - 2023
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.
CompareCompareHigh Interest Savings Account
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.
- Maximum rate
- 5.75% p.a. (for $0 to $250,001)
- Standard interest rate
- 4.40% p.a.(for $0 to $250,001)
- Govt Deposit Guarantee
- Yes up to $250,000
- Standard interest rate
- 4.40% p.a.(for $0 to $250,001)
- Account fee per month
- $0.00
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read our Mozo Review to learn more about the Rabobank High Interest Savings Account
-
Mozo experts choice awards won:
- High Interest Savings - 2023
Bonus Saver Account
5.00% p.a. (for $0 to $250,000)
0.05% p.a.(for $0 and over)
Yes up to $250,000
Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Glide transaction account.
Start saving and earn interest with just a $20 deposit and make 5 eligible transactions each month. No fees or penalties for withdrawing money.
CompareCompareBonus Saver Account
Start saving and earn interest with just a $20 deposit and make 5 eligible transactions each month. No fees or penalties for withdrawing money.
- Maximum rate
- 5.00% p.a. (for $0 to $250,000)
- Standard interest rate
- 0.05% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- Standard interest rate
- 0.05% p.a.(for $0 and over)
- Account fee per month
- $0.00
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read our Mozo Review to learn more about the MyState Bank Bonus Saver Account
^See information about the Mozo Experts Choice Savings Account Awards
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