Why a flexible savings account might work for you in 2021

A woman sits with a toddler on her lap, looking at a laptop screen.

Although there is certainly no shortage of savings accounts to choose from in Australia, not all of the ones on offer will be suited to your personal situation.

For instance, a recent MyState Bank survey found that nearly a quarter of Australians are focusing on paying off their mortgage in 2021. Add to that the potential job losses from the end of JobKeeper and it seems clear that many savers will likely be searching for an account with fewer strings attached to keep their rainy day fund in.

With this in mind, we had a look at our Mozo database to see if there were any accounts that require less than a $100 monthly deposit, to earn the maximum ongoing interest rate. Here are five of the ones we found.

Some savings accounts to consider

  • 1.10% p.a. ongoing maximum interest rate
  • Deposit $20 and make 5 transactions each month to earn the full interest rate

If you have mortgage repayments to make or you simply don’t have a lot of money coming in, you might consider looking into MyState Bank’s Bonus Saver. The interest rate for this account is fairly competitive and the conditions to earn it aren’t too rigorous either. These consist of each month depositing $20 into your MyState Bank savings account and making at least five visa debit transactions. These should be done via a linked MyState Bank transaction account and must be settled within the month. Should you meet these conditions you will be rewarded with the full 1.10% p.a. ongoing interest rate. That includes a 0.10% p.a. base rate and 1.00% p.a. bonus rate. Just keep in mind that the bonus rate only applies for balances under $250,000. Anything over this and your interest rate will drop to 0.10% p.a.

  • 1.10% p.a. ongoing maximum interest rate
  • Make four tap and go purchases each month to earn the full interest rate

Again if you’re after an account that doesn’t require a lot of hoop jumping to earn the full interest rate, ME Bank’s Online Savings Account might be worth checking out. To earn the full 1.10% p.a. interest rate, you will simply have to make four settled tap and go purchases via a linked ME Bank Everyday Transaction Account each month. There are also no account or transaction fees to worry about. Just keep in mind that if you don’t meet the bonus interest rate conditions, or if your balance goes over $250,000 the rate will drop to a low 0.05% p.a.

  • 1.00% p.a. ongoing interest rate
  • Unlimited free transactions via the mobile app

If you want to keep things simple, then a savings account with a no strings attached interest might be up your alley. One such account is neobank Volt’s Savings Account and its 1.00% p.a. interest rate. This means that you don’t have to worry about depositing a certain amount each month or making a certain number of transactions. Although one thing to note is that this interest rate is only available for balances up to $245,000. If your balance goes over that, the interest rate will drop to 0%.

  • 1.10% p.a. four month introductory rate
  • 0.95% p.a. ongoing interest rate

Looking for a little boost to get your savings started? If your cash flow is low at the moment but you still want to put a little aside, you might want to take a look at this offering from Macquarie Bank. This savings account comes with a four month introductory interest rate of 1.10% p.a. for new customers with a balance under $250,000. Plus, once the honeymoon period is over the ongoing 0.95% p.a. interest rate on offer is still pretty competitive. Just keep in mind that if your balance is over $250,000, you won’t be able to snag the introductory rate and the ongoing rate will drop to 0.70% p.a.

  • 0.80% p.a. ongoing interest rate
  • No monthly account keeping fees

Another account that comes with a no-strings attached interest rate is MyLife MyFinance’s MySavings Account. With this account you can earn 0.80% p.a. interest on your savings stash. There are no monthly account keeping fees and no minimum monthly deposit requirements. To earn the interest rate you will just need to have a regular balance of more than $1. So, if your earnings are low or you have high mortgage payments to make, this might be a more flexible savings option for you. Just bear in mind that as this rate is variable, it is subject to change at any time.

Struggling to stick to your 2021 savings plan? Why not check out our article on how to get and keep your finances in order in the year ahead. Or if none of the accounts above appeal to you, head to Mozo's compare savings accounts page, to see what other options are available.

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

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