October savings: Spring into action or face interest cuts

By Olivia Gee ·
Fact Checked
Advertiser disclosure
Person banking on a phone, wearing a mask

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 25 September 2021

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Bonus Saver Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.10% 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 Everyday or Glide transaction accounts.

    Winner of a Mozo Experts Choice Award 2021 in the Regular Saver category. No monthly account fees and no minimum balance requirements.

    Go to site
    Details
  • 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

    Go to site
    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.

    Go to site
    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.

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    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.

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    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.

    Go to site
    Details

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

^See information about the Mozo Experts Choice Savings Account Awards

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