October savings: Spring into action or face interest cuts

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.

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

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 274 savings accounts.
Last updated 19 July 2024 Important disclosures
  • Savings Account

    5.35% 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 4 months.

    Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2024 Mozo Experts Choice Award winner.

  • 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.

  • Savings+Bonus

    5.00% p.a. (for $0 to $250,000)

    2.00% p.a.(for $0 to $250,000)

    Yes up to $250,000

    Minimum $100 monthly deposit and no withdrawals to earn bonus interest each month.

    Earn a generous interest rate on your at-call savings (T&Cs apply). Interest is calculated daily and paid to you monthly. A $5 monthly membership fee will not apply if your total account balances with First Option Bank exceed $1,000 or you have a credit card or loan with the bank.

  • 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.

  • Mozo Expert Choice Badge
    Savings Maximiser

    5.50% p.a. (for $0 to $100,000)

    0.55% p.a.(for $0 and over)

    Yes up to $250,000

    For customers who have an Orange Everyday account, deposit $1000 into a personal ING account, make 5 eligible transactions and grow their nominated Savings Maximiser account each month.

    Great variable rate every month when you grow your balance each month in addition to other eligibility criteria. No ING fees to pay. Save even more with ING Everyday Round Up. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^


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

^See information about the Mozo Experts Choice Savings Account Awards

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