Why intro and bonus savings rate cuts aren't all bad news for savers

Saving money in a piggy bank
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A number of recent cuts to introductory and bonus savings account rates doesn't bode well for Aussie savers, but it's worth reviewing how they stack up against the averages in mid-July. 

Savings interest rates are still fairly buoyant in general.

To check how the landscape looks, let's first consider some of the notable introductory savings cuts:

Newcastle Permanent cut the 3 month introductory rate on its Online Savings Account by 20 basis points (bp) to 5.20% p.a, according to the Mozo database.   

Also, Credit Union SA reduced the 4 month introductory bonus rate on its Netsave Account by 10bp to 5.20% p.a. 

And, Heritage Bank took 25bp off the 4 month introductory rate on its Online Saver account, now 5.15% p.a. 

Yes, these rates are lower but they're also quite close to the average introductory rate of 5.01% p.a, as per the Mozo database.

Meanwhile, a couple of providers have also trimmed their 'bonus' rate savers, with QBANK and Bendigo Bank among the movers in June.

QBANK trimmed 5bp off the ongoing bonus rate on its Bonus Saver account, taking it to 4.95%. 

Bendigo cut its Rewards Saver ongoing bonus rate by 25bp, now 5.00% p.a. 

But again, where do these rates stand on the wider market? 

Well, the average bonus savings rate is 4.61%, according to the Mozo database, so these rates are notably above average. 

Right now there are also higher bonus rates available, such as Rabobank's High Interest Saver, which is at 5.75%, currently the highest in the Mozo database. 

Consider how bonus savings rates work

Of course, to earn any bonus rate a series of conditions needs to be met first, often based on making minimum deposit amounts or withholding from taking money out each month. Each set of conditions will be different per product, so always check the criteria before selecting a bonus rate savings account. 

Bonus accounts will typically revert to an ongoing base rate, which can also be quite decent at present, though should always be compared to other leading offerings of the same kind. 

And remember, an introductory savings rate is limited, where the 'boosted' interest rate only lasts for a set number of months. The 'revert rate' must always be weighed up.

If you're looking for a better savings account be sure to review some of the leading options below, as chosen by our Mozo experts.

Compare top savings accounts

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 23 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.

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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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    Details
  • 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.

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  • 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. No Account keeping fees. No minimum balance. Support Aussie farmers with every dollar you save.

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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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