Why your savings account should be on your spring clean list this year

When it comes to your finances, being a good saver is crucial.
And what goes hand-in-hand with being a good saver? A high interest savings account.
So if you are currently signed up with a provider that offers low interest rates (or none at all), it’s time to put your savings account on your spring clean list!
First off, what is a high interest savings account?
As the name suggests, a high interest savings account is a type of savings account that offers an interest rate that is considered ‘high’ in the current market.
This is usually a combination of a base interest rate and a special bonus rate or intro rate. In most cases, savers receive a bonus rate when their balance grows by a certain amount each month and/or they make a certain number of purchases on their connected transaction account.
“The bonus interest rate is an extra interest rate offered in certain circumstances and in addition to the base rate,” says Virgin Money Australia’s general manager of lending, cards and deposits, Johnny Lockwood.
“This may be either as an introductory bonus rate for a limited time (also known as a honeymoon rate) or as a ‘conditional rate’ that some account-holders may qualify for by meeting particular requirements.”
But the truth is, savings account rates are pretty low at the moment. In fact, right now on the Mozo database the average bonus rate sits at a low 0.59% while the average intro rate sits at a slightly higher 0.62%.
Meanwhile, amongst the big four banks, the average bonus rate on the Mozo database is currently 0.31% and the average introductory rate is 0.32%. So, if you’ve stuck with the big four for your savings, it may be time to wipe them away.
Lockwood explains that although rates are at an all-time low right now, it’s worth looking around for a high-interest savings account to get the most out of your savings.
“It’s really important to do your research when looking for high interest savings accounts as there are a number of things to consider. One feature is compound interest - on a high interest savings account this can make a big difference over the long term,” he says.
Want to compare savings account options now? Check out these top products below!
Compare high interest savings accounts - last updated 28 November 2023
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Hot Deal Earn up to 5.20% p.a. (effective from 1st December 2023).
Mozo experts choice awards won:
- High Interest Savings - 2023
AMP Saver Account
5.20% p.a. (for $0 to $250,000)
1.20% p.a.(for $0 to $5,000,000)
Yes up to $250,000
Enjoy a bonus rate when you deposit at least $1000 per month with the AMP Saver Account.
No account fees. Unlimited transactions when linked to an AMP Bank transaction account. Easy online access to your money. Option to link your savings account to an everyday transaction account. 2023 Mozo Experts Choice Award winner.
CompareCompareAMP Saver Account
No account fees. Unlimited transactions when linked to an AMP Bank transaction account. Easy online access to your money. Option to link your savings account to an everyday transaction account. 2023 Mozo Experts Choice Award winner.
- Maximum rate
- 5.20% p.a. (for $0 to $250,000)
- standard interest rate
- 1.20% p.a.(for $0 to $5,000,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Ongoing total variable bonus rate of up to 5.20% per annum (effective from 1st December 2023) applies if customers deposit $1,000 in the previous month. Available only on balances up to $250,000.
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Ongoing total variable bonus rate up to 5.20% p.a. (effective from 1st December 2023) is earned on the balance the month after you deposit $1,000 and is paid the following month, on balances up to $250k. Max balance per customer name is $5 million.
Read our Mozo Review to learn more about the AMP Bank AMP Saver Account
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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.
CompareCompareReward Saver Account
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.
- Maximum rate
- 5.25% p.a. (for $0 to $1,000,000)
- standard interest rate
- 0% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- 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.
- Access
- ATM, EFTPOS, Visa Debit, Cheque book, BPay, Branch access, Phone banking, Internet banking, Bank@Post
- Minimum balance
- $0.00
- Other restrictions
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Read our Mozo Review to learn more about the IMB Bank Reward Saver Account
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AMP Cash Manager
No Current Offer
4.80% p.a.(for $10,000 to $250,000)
Yes up to $250,000
Earn up to 4.60% p.a variable rate with AMP Cash Manager on balances from $10,001 to $250,000. Manage and access your funds while earning interest. No transaction fees to pay. Visa debit card, eftpos, and BPAY facilities. Digital wallet payments with Apple Pay, Samsung Pay or Google Pay.
CompareCompareAMP Cash Manager
Earn up to 4.60% p.a variable rate with AMP Cash Manager on balances from $10,001 to $250,000. Manage and access your funds while earning interest. No transaction fees to pay. Visa debit card, eftpos, and BPAY facilities. Digital wallet payments with Apple Pay, Samsung Pay or Google Pay.
- Maximum rate
- No Current Offer
- standard interest rate
- 4.80% p.a.(for $10,000 to $250,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- n/a
- Access
- ATM, EFTPOS, Visa Debit, Cheque book, BPay, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
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High Interest Save Account
5.00% 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.
CompareCompareHigh Interest Save Account
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.
- Maximum rate
- 5.00% p.a. (for $0 to $250,000)
- standard interest rate
- 0.10% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Deposit at least $200 to either Spend or Save account from an external source each month.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Bank and saving account only accessible through iOS or Android app.
Read our Mozo Review to learn more about the ubank High Interest Save Account
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Mozo experts choice awards won:
- High Interest Savings - 2023
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.
CompareCompareBonus Saver 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.
- Maximum rate
- 5.00% p.a. (for $0 to $250,000)
- standard interest rate
- 0.05% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Glide transaction account.
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read our Mozo Review to learn more about the MyState Bank Bonus Saver Account
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Savings Maximiser
5.50% p.a. (for $0 to $100,000)
0.55% p.a.(for $0 and over)
Yes up to $250,000
For customers who have an Orange Everyday account, deposit $1000 into a personal ING account, make 5 eligible transactions and grow their nominated Savings Maximiser account each month.
No ING fees. Great variable rate every month when you grow your balance each month in addition to other eligibility criteria.
CompareCompareSavings Maximiser
No ING fees. Great variable rate every month when you grow your balance each month in addition to other eligibility criteria.
- Maximum rate
- 5.50% p.a. (for $0 to $100,000)
- standard interest rate
- 0.55% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- For customers who deposit $1000 from an external source into a personal ING account (excluding Orange One and Living Super), make 5 eligible transactions and grow their nominated Savings Maximiser account each month so there is more in the account at the end of the month than there was at the start of each month (excluding interest). The total bonus interest rate is available on balances up to $100,000 on one Savings Maximiser the next month after meeting eligibility.
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must be linked to an Orange Everyday transaction account to receive the bonus rate. Where multiple Savings Maximiser Accounts are held, the bonus rate is only applied to one nominated account.
Read our Mozo Review to learn more about the ING Savings Maximiser
How much should I be saving each week?
Unfortunately, there is no set answer here. Your weekly savings can be influenced by a number of things like your income, your regular expenses, unexpected expenses and of course, what it is you’re saving for.
In saying that, according to the head of Rabobank online savings, Bede Cronin, Rabobank’s savings customers save an average of around $350 to $500 each week. But he also explains that that’s not set in stone for everyone, and it’s crucial to understand your own situation.
“I would say that a good starting point is to understand how much of your savings you need to access immediately compared to what you can safely lock away for a period of time in order to generate a higher rate of interest,” Cronin says.
“And remember that even a small amount saved regularly can have a big impact over the years.”
And while having a solid weekly savings plan is important, it’s also crucial to have the right financial tools behind you.
“Our annual Financial Health Barometer research^ has shown that Australian savers often have their savings sitting in their transaction account earning zero interest,” Cronin says.
“However the benefit of high interest savings accounts is having peace of mind that your money is working for you by collecting a better interest rate and not paying any fees – rather than just leaving them in a transaction account. You can reach your savings goals faster by saving in an account that works best for you.”
Why is it important to be a good saver?
Developing good financial habits is important, and being a good saver is one of the most crucial.
Lockwood says that no matter whether you’re saving for a house, car, wedding or to splurge at a fancy restaurant, it’s a fantastic feeling when you hit your personal savings goals.
“Understanding more about your income and expenses, and setting affordable savings goals over a set period of time can be really rewarding,” he says.
“It gives you a great sense of accomplishment and financial security watching your savings balance go up every month and knowing you are closer to seeing your goal become a reality.”
Meanwhile, Cronin says that although current savings rates are low, regularly putting away money in a high interest savings account can see your dollars go further.
“Being a good saver can mean different things to different people, but I think overall it all comes down to taking control of your finances and creating healthier habits around money,” he says
“For example, it could be setting yourself a monthly budget that could help you curb impulse spending, setting a weekly savings target to reach your long term goal of having a nice nest egg for when you need it, or saving for that overseas trip you always wanted to go on (when the borders open of course).”
Looking to find out more about your savings accounts options? Jump over to our savings account hub for all the info you need!
^The 2020 Rabobank Food Waste Report is part of Rabobank’s annual Financial Health Barometer (FHB), surveying over 2,395 financial decision makers aged between 18 and 65. The survey now in its tenth year polls attitudes and behaviours towards saving, debt, farming, food production and food waste. Results are weighted by gender, age and location according to statistics from the Australian Bureau of Statistics.
^See information about the Mozo Experts Choice Savings Account Awards
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