Need a change of scenery for your rainy day fund? Here’s how to choose a savings account that’s right for you

Tara McCabe

Monday 30 March 2020

With a global health crisis ongoing and the future of a lot of jobs on the line, it’s understandable if you’re feeling anxious about your rainy day fund. Savings rates are changing all the time, so if you haven’t looked around for a while you may find your current account isn’t giving you the interest you deserve. 

Moving your rainy day fund to a new savings account.

To help you with a search for a new savings home, here’s a rundown of three different types of savings accounts you can get and who they might be suited to.

Bonus rate savings accounts

Whether you’re an expert saver keen to get a little something in return for your diligence, or you need a bit of a nudge to remind you to top up your savings stash each month, a bonus saver account could just be what you’re looking for.

This type of account comes with two different interest rates - a base rate and a bonus rate. The base rate is the interest rate you’ll get each month no matter what and the only way it would change is if your bank decides to put it up or down, but this usually doesn’t happen too often. 

Bonus rates, on the other hand, are conditional - this means that you will usually have to meet a list of criteria each month to achieve them. This is often stuff like not making any withdrawals throughout the month, depositing a certain amount regularly or making a number of transactions with a linked everyday transaction account.

Bonus saver accounts to put on your shortlist

AccountInterest                       rateConditions
MOVE Bank’s Bonus Saver2.00% p.a. (0.80% p.a. base rate)Minimum $200 deposit each month with no withdrawals.
MyState Bank’s Bonus Saver Account2.00% p.a. (0.30% p.a. base rate)Minimum $20 deposit plus 5 debit card transactions each month, through a linked everyday transaction account.
86 400 Save Account2.00% p.a. (0.40% p.a. base rate)Minimum deposit $1,000 per month into your Save or Pay Account.

No-strings savings accounts

Unlike the bonus saver, a no-strings-attached savings account comes with no conditions to meet and just one interest rate to worry about.

Average interest rates for these types of accounts are usually lower than bonus rates, but if you don’t want the hassle of having to tick off a load of criteria, then they are a good savings choice.

The only thing you may want to watch out for is the maximum balance amount you can earn the full base rate on. Maximum balances to earn the full base rate could vary from anywhere between $25,000 and $245,000.

So, if you’re worried about your income right now and you’re not sure you would be able to meet all the conditions that come with a bonus saver account, a no strings attached savings account might just be a better option for you.

Competitive no-strings accounts

AccountInterest rateConditions?
Volt Bank Savings Account1.65% p.a.None!
MOVE Bank Express Saver1.50% p.a.Zilch!
Southern Cross Credit Union Star Saver1.50% p.a. (1.75% p.a. introductory rate for 6 months)Nada!

Introductory rate savings account

Savings accounts with introductory rates often come with some of the most competitive rates around - the catch being that the high interest rate you get when you sign up is only for a limited period of time. 

Think of it as a sort of honeymoon period; for the first three to six months that you have the rate, you’ll earn a high amount of interest without having to put in any effort. After the introductory period is up your savings rate will drop to a lower variable base rate. 

The great thing about this type of account is that, even though the more competitive rate is only for a limited period of time, you usually won’t have to meet any conditions to get it. So if you’re worried about your job security for the next few months and you don’t mind swinging between different savings accounts to keep on getting a competitive rate, then these accounts are worth checking out.

Introductory rates worth saying hello to

AccountInterest rateConditions
AMP Saver Account2.65% p.a. introductory rate (reverts to 1.05% p.a. base rate after 6 months)Only available for new AMP Saver Account customers.
Macquarie Savings Account2.65% p.a. introductory rate (reverts to 1.35% p.a. base rate after 4 months)Welcome rate only available for customers who have not had a Macquarie Savings Account before.
Heritage Bank Online Saver2.30% p.a. introductory rate (reverts to 0.90% p.a. base rate after 4 months)Only available for new customers with balances under $100,000.

Next steps

The great thing about most online savings accounts is that they don’t come with any fees and can be set up online without having to visit a branch or completing lengthy paperwork - perfect in this time of physical distancing.

Well now that you have all this knowledge under your belt, check out Mozo’s compare savings accounts hub for more options, or take a look at the interest rates on offer below.

Compare today's top savings accounts

Back to top