Why it's time to switch savings account

Switching savings accounts can be a strategic move in personal finance management. The decision to switch should be based on several factors that align with your financial goals and changing economic environment. 

Here's why it might be time to consider switching your savings account:

1. Interest Rates

Interest rates are the most significant factor for most people. Banks periodically adjust the interest rates on savings accounts and these can vary widely between institutions. A higher interest rate means more earnings on your savings, so finding a bank that offers a competitive rate can make a notable difference in the growth of your savings over time.

2. Fees and Terms

Banks may have various fees associated with their savings accounts, such as monthly maintenance fees or withdrawal fees. Over time, these can erode any interest earned. 

3. Technology and Accessibility

The ease of managing your savings account is crucial. Online banking, mobile apps, and other technological features offer convenience and control over your finances. If your current bank lacks these features or its platform is not user-friendly, switching to a bank that provides better technology might be wise.

4. Changing Financial Goals

As your financial situation changes, so too might your banking needs. For example, if you're saving for a specific goal like buying a house or preparing for retirement, some savings accounts may offer features more suited to those goals, such as higher interest rates for larger balances or special retirement accounts.

5. Economic Environment

The broader economic environment can influence the decision to switch savings accounts. In periods of rising interest rates, banks often increase the rates offered on savings accounts. Staying informed about economic trends can help you capitalise on these opportunities.

6. Customer Service

The quality of customer service is an important consideration. Good customer service can make managing your finances a smoother process, especially when dealing with issues or seeking financial advice. Check out Mozo reviews of provider products as you can also find reviews from other account holders to get an idea of how customers are treated.

7. Additional Benefits

Some banks offer additional benefits such as cashback on purchases, reward points, or other incentives that can add value beyond the interest earned on the account.

8. Regulatory Changes and Safety

Banking regulations and the financial stability of banks can change. Ensuring that your savings are in a financially stable and well-regulated bank is important for the safety of your funds. In Australia, the government guarantees deposits with Authorised Deposit-taking Institutions (ADIs) up to $250,000 in the event of bank failure.

Making the Switch

Before switching, it’s important to:

  • Compare options: Research various banks, comparing interest rates, fees, services, and other features.
  • Read the fine print: Understand the terms and conditions of the new account, including any fees and rate changes.
  • Consider the timing: Timing matters if you want to take advantage of a promotional interest rate or bonus or if interest rates are in the process of coming down.
  • Prepare for the transition: Ensure a smooth switch by setting up direct deposits, automatic payments, and other necessary changes.

In an ever-changing economic environment, periodically reassessing your banking options ensures that your savings are working as hard as possible for you. This proactive approach can help a lot in achieving your financial goals.

Looking to make the switch now? Check out our savings account comparison page or some of the providers in the table below… 

Savings account comparisons on Mozo - last updated 23 February 2024

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

  • 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.

  • High Interest Save Account

    5.10% p.a. (for $0 to $250,000)

    0.10% p.a.(for $0 and over)

    Yes up to $250,000

    Deposit at least $200 to either Spend or Save account from an external source each month.

    No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.

  • Mozo Expert Choice Badge
    Savings Account

    5.50% 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.

  • Hero Saver

    4.60% p.a. (for $0 to $250,001)

    1.00% p.a.(for $0 to $5,000,001)

    Yes up to $250,000

    Minimum deposit of $200 and no withdrawals in the month.

    Earn a generous variable rate on balances up to $250,001 each month you deposit at least $200 (excluding interest) on or before the last business day each month and make no withdrawals during the month. $0 account maintenance fees. Create a goal, set up regular deposits and track your progress on the Bankwest app.

  • Reward Saver

    5.25% p.a. (for $0 to $100,000)

    0.30% p.a.(for $0 and over)

    Yes up to $250,000

    Earn a high interest bonus rate if you hold an eligible transaction account and meet the bonus rate conditions (T&Cs apply). Only requires $1 to open. Free e-banking transactions. No monthly service fees to pay. Access your account via e-banking or the Bendigo Bank app. Not applicable to business customers.

  • Mozo Expert Choice Badge
    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.