October savings: Spring into action or face interest cuts

By Olivia Gee · · 2 min read
Fact Checked
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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 27 April 2024

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

    5.40% p.a. (for $0 to $250,000)

    1.20% p.a.(for $0 to $5,000,000)

    Yes up to $250,000

    Enjoy a bonus rate when you deposit at least $1000 per month with the AMP Saver Account.

    No account fees. Unlimited transactions when linked to an AMP Bank transaction account. Easy online access to your money. Option to link your savings account to an everyday transaction account. 2024 Mozo Experts Choice Award winner.

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  • 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.

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

^See information about the Mozo Experts Choice Savings Account Awards

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