Savings rates slashed again: Avoid the crunch

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If you’re one of the thousands of Australians who’ve set yourself a serious savings goal for 2020, the news that banks are slashing savings rates yet again won’t be very welcome but it should be a very big wake-up call to check the rate you’re now getting.

With the likes of ANZ and NAB cutting rates on popular savings accounts in recent weeks, the average ongoing savings rate across 201 accounts in the Mozo database has dropped to a miserable 0.97%. But don’t despair, as there is some bright news too.

It’s still possible for savers to get interest rates of 2.00% or more by shopping around, and even in a low rate environment it’s worth moving your money to a higher paying account. Over time, on a typical deposit of $10,000 a simple switch can add up to hundreds of dollars in your pocket in extra interest.

Check out the Mozo expert round up of some of the top savings and term deposit accounts on the market right now and see if a simple switch can help you reach your savings goal faster.


Top Deposit Accounts

MyState Bank Bonus Saver Account
MyState Bank
  • Special 1.50% interest rate

  • No account keeping fees

  • Unlimited monthly transactions

Our verdict

If you’re a savvy saver who wants to be rewarded for your saving habits, then look no further than the MyState Bank Bonus Saver Account. This savings account features a special 1.50% p.a. rate and all you'll need to do to get it is deposit a minimum of $20 every month and make five debit transactions, it's that simple. You'll also score unlimited transactions every month through your phone or the internet, but keep in mind you will need a linked MyState Bank transaction account. 

Where do I get it? Head over to MyState to find out more >>

UBank Term Deposit
UBank
  • 1.70% p.a. for a 12 month term

  • 0.10% loyalty bonus at renewal

  • No fees whatsoever

Our verdict

With no fees, competitive interest rates from as high as 1.70% p.a. and a loyalty bonus at renewal, the UBank Term Deposit really could deliver great value for Aussies looking to stash away their savings for a year or less. Plus, if you’re happy with the rate you’re earning, simply sit back and let the automatic renewal feature do its thing.

Where do I get it? Head over to UBank to find out more >>

^See information about the Mozo Experts Choice Savings accounts Awards

Want to compare more savings accounts? Compare over 60 banks on Mozo to find a high interest savings account for your needs.