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 23 February 2024

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • 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.

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  • Mozo Expert Choice Badge
    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.

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  • High Interest Save Account

    5.10% p.a. (for $0 to $250,000)

    0.10% p.a.(for $0 and over)

    Yes up to $250,000

    Deposit at least $200 to either Spend or Save account from an external source each month.

    No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.

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  • Mozo Expert Choice Badge
    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.

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  • Hero Saver

    4.60% p.a. (for $0 to $250,001)

    1.00% p.a.(for $0 to $5,000,001)

    Yes up to $250,000

    Minimum deposit of $200 and no withdrawals in the month.

    Earn a generous variable rate on balances up to $250,001 each month you deposit at least $200 (excluding interest) on or before the last business day each month and make no withdrawals during the month. $0 account maintenance fees. Create a goal, set up regular deposits and track your progress on the Bankwest app.

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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.

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  • Mozo Expert Choice Badge
    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.

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^See information about the Mozo Experts Choice Savings Account Awards

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