October savings: Spring into action or face interest cuts

By Olivia Gee ·

If you’ve been keeping an eye on your savings account interest rate over the last six months, it’ll come as no surprise that rate cuts continued in September.

Mozo’s data team saw 65 interest rate reductions last month, which brought the average ongoing rate down 3 basis points (bp) from last month to 0.61%.*

Big 4 cuts alongside rate-leaders 

Larger financial institutions and accounts that formerly led the savings pack didn’t buck this trend, with three of the four major banks (NAB, Westpac and CommBank) reducing rates across multiple savings products.

Australian Unity’s Active Saver account had a brief moment in the leader sun with an interest rate of 1.75%, before plummeting 25bp. ING also cut its solid Savings Maximiser down to 1.50%, and Volt’s competitive unconditional rate fell from 1.65% to 1.45%.

Besides the young savers still cheering for Westpac Life (which offers a conditional rate of 3.00% exclusively to people aged 18-29), the magic interest rate number is 1.60%. Right now this is the highest ongoing savings rate in Mozo’s database, and it’s a three-way tie between digital players UBank, Up and 86 400.

RELATED: Your savings in 2020: Death by a thousand rate cuts.

Are term deposits your go-to for the tailend of 2020? 

Term deposits didn’t receive a whole lot of love last month either, according to our monthly snapshot. However, it could pay to investigate this longer-term option if you’re after a little consistency in these uncertain times.

While the average rate for term deposits is an unremarkable 0.84%, you can lock in a better deal – as high as 1.55% if you squirrel away your funds with Judo Bank for three years.*

Considering rumblings about the Reserve Bank of Australia potentially cutting the cash rate further in October, a fixed rate like this might be preferable for many Aussies saving for the future.

Are you sticking with your savings account? Scour the options below to ensure you’re getting the absolute best rate and conditions.

Compare savings accounts in October - rates updated daily

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure.
  • Mozo Experts Choice 2021
    Bonus Saver Account

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.20% p.a. (for $0 to $250,000)
    0.10% 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 Everyday or Glide transaction accounts.

    Go to site
    Details
  • Serious Saver

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    0.30% p.a. (for $0 to $1,000,000)
    0.15% p.a.(for $0 and over)
    Yes up to $250,000

    No withdrawals in the month. Bonus rate for first 4 months, reverting to 0.15% rate after*

    Go to site
    Details
  • Hero Saver

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    0.80% p.a. (for $0 to $250,001)
    0.01% p.a.(for $0 to $5,000,000)
    Yes up to $250,000

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

    Go to site
    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

    Go to site
    Details
  • Flexi Saver

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    0.25% p.a. (for $0 to $5,000,000)
    0.05% p.a.(for $0 to $5,000,000)
    Yes up to $250,000

    Increase balance by at least $300 in the month

    Go to site
    Details

*Correct at the time of publication (1 October, 2020).

^See information about the Mozo Experts Choice Savings Accounts Awards

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