October savings snapshot: Interest rate cuts spike

Woman looking at phone and laptop, concerned about dropping savings interest rates in October.

Over the last month, savings account interest rates have taken a tumble. Mozo’s analysts recorded 26 cuts across the database which, despite one increase, brought the average ongoing savings rate down to 0.39% p.a.

While this sounds rather dismal, it’s still more than double the average ongoing rate offered by the Big 4, which is now hovering at 0.16% p.a. This disparity, alongside some notable changes to leading rates in Mozo’s database, is why it’s still worth comparing savings accounts in the current market.

Big rate shifts for savings account leaders

Early on in September Virgin Money brought out a new introductory savings rate of 1.50% p.a. for its Boost Saver Account. This three-month rate overtook Rabobank to become the category leader in Mozo’s database, and the 1.20% p.a. revert rate isn’t far behind the ongoing bonus interest leader, ING’s Savings Maximiser.

New applications for the account are only available until 30 November and banking customers of different ages are required to meet different interest-earning criteria, so be sure to read the fine print.

Westpac made a slew of savings account cuts which included a sizeable slashing of 50 basis points from its popular Westpac Life account for 18 to 29-year-olds. The account formerly boasted a 3.00% p.a. interest rate on balances up to $30,000 for those in the age bracket. 

To earn the now 2.50% p.a. maximum rate you still need to make at least one deposit and grow the account balance monthly, as well as make five eligible debit card purchases via a linked Westpac Choice transaction account. 

Despite the drop, the Westpac Life account is still leading the savings rate pack for those in the eligible age group. If you don’t fit in this group, there are still some competitive savings account options available. Start comparing a few here:

Compare high interest savings accounts - last updated 16 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
  • 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
  • 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
  • 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
  • Fast Track Starter Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    2.50% p.a. (for $1 to $10,000)
    0.05% p.a.(for $1 and over)
    Yes up to $250,000

    Ongoing bonus rate applied and 5 eligible transactions are made by the linked accountif in the previous month $200 or more is credited to the linked Day2Day Plus account.

    3.00 %P.A. Bonus Interest on balances up to $10,000 when the Bonus Criteria is met. Free withdrawals to your linked Day2Day Account while still earning Bonus Interest. Only available between the ages of 14 - 24 years.

    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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