October savings: Spring into action or face interest cuts
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 - last updated November 21, 2020
Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure.
- MyState Bank
1.50% p.a. (for $0 to $250,000)
0.15% 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.
CompareDetailsMyState BankBonus Saver Account
1.50% p.a. (for $0 to $250,000)
0.15% 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 siteCompare - Bank of Queensland
1.20% p.a. (for $1 to $250,000)
0.20% 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.
CompareDetailsBank of QueenslandFast Track Saver Account
1.20% p.a. (for $1 to $250,000)
0.20% 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.
Go to siteCompare - Up
1.10% p.a. (for $0 to $1,000,000)
0% p.a.(for $0 and over)
Yes up to $250,000
Make 5 or more successful card purchases per calendar month using your Up debit card and digital wallets (ATM transactions excluded).
CompareDetailsUpSaver Account
1.10% p.a. (for $0 to $1,000,000)
0% p.a.(for $0 and over)
Yes up to $250,000
Make 5 or more successful card purchases per calendar month using your Up debit card and digital wallets (ATM transactions excluded).
Go to siteCompare - Citi
0.85% p.a. (for $0 to $500,000)
0.35% p.a.(for $0 and over)
Yes up to $250,000
CitiOnline Saver
0.85% 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 siteCompare
*Correct at the time of publication (1 October, 2020).
^See information about the Mozo Experts Choice Savings Accounts Awards
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