This is the number 1 mistake Aussies are making with their savings. Are you guilty?

Mozo recently released the findings of our annual savings report and shockingly, despite the high cost of living, many Aussies continue to throw money down the drain. 

The number one mistake we found Aussies are making with their savings is that rather than have a dedicated savings account or term deposit, one in three people continue to keep their savings in their everyday transaction account earning little to no interest.   

According to the Mozo database, only 36 out of 110 bank accounts* (33%) pay interest on the money kept in transaction accounts, and only 9% offer more than 0.10% p.a.

The best ongoing interest rate is currently 5.40% p.a. with ING’s Savings Maximiser account, as long as you meet the monthly conditions. 

On a $5,000 savings balance, that means you could be missing out on as much as $277 interest annually by keeping your funds in a non-interest earning bank account.  

“It’s madness that people aren’t more motivated to make their money work as hard as it can for them,” said Rachel Wastell, Mozo’s consumer saving expert. 

“Yes, some banks do have complicated bonus criteria for savings accounts, but many banking apps provide you with notifications and alerts that help you to keep track of balance requirements and due dates which make it easier to stay on top of,” she said.

Time to compare and save? 

Here’s a look at some of the latest savings and term deposit offers that are available to help you increase your returns. 

*Mozo database, accurate as at 4 April 2025. Bank accounts excluding kids and pensioner accounts.