Up will cut its rate-leading savings account in November

If the last month of savings interest rate cuts has proved anything, it’s that even rate-leaders aren’t immune to severe reductions. 

As of today, the Up Saver Account has one of the three top maximum savings rates in Mozo’s database at 1.60%. From 1 November, it’ll drop 50 basis points (bp) to a less-than-inspiring 1.10%.

However, it’s still sitting ahead of the average ongoing savings rate, which has plummeted to 0.59%.* 

While it is the largest reduction we’ve recorded in recent months, it isn’t a total outlier. In September Mozo’s data team saw other considerable cuts like Bank of Sydney slashing 45bp from its BOS Saver base rate and Beyond Bank's 35bp cut to its Purple Bonus Saver.

Up customers will still need to make five successful card purchases each month through the linked Everyday Account to access the new rate, but they won’t receive the former 0.10% base rate if they fail to do so.

One number which has increased is the account limit for earning interest. From November, it’ll jump from $50,000 to a tidy $1 million. 

RELATED: RBA keeps interest rates at 0.25% in October.

Is there a safe bet for your savings in 2020?

Savings rates look pretty rough right now and there isn’t a guaranteed way to forecast changes. But there are a few savings moves you might consider to keep your nest egg growing. This includes:

Taking advantage of specialised accounts like Westpac Life (18-29 years old). If you fit in that age bracket and can meet the bonus interest criteria, you could earn 3.00% on a savings bundle up to $30,000. 

Hunting for top introductory rates. If you’re looking to meet a short term goal or are comfortable hopping between savings accounts, you could snag a much higher rate for a short intro period on some accounts. Just keep your eye out for dismal revert rates or any lock-in conditions.

Considering a term deposit. Even if you’re a commitment phobe, you might find some relief in the consistency of a locked-in interest rate. Right now, Judo Bank is offering some of the most competitive term deposit rates, with up to 1.55% on a three-year term. 

Researching and comparing savings accounts. Luckily, you’ve come to the best place to begin this mission. Start by checking out some of the options below.

*Accurate at the time of publication.