Online savings accounts

The internet is not just for funny cat videos (although those are important too.) It’s also the perfect place to find yourself somewhere to park your hard earned savings.

Yes, online savings accounts are all the rage - and for good reason. We’ve got the lowdown on all the facts, features, highs and lows of online savings accounts to help you make an educated decision about whether these accounts will be the right fit for you.

And then you can get back to watching Mittens fall off high places.

Start comparing savings accounts below. 

Savings Accounts Comparison Table - last updated 31 July 2021

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
    • Mozo Expert Choice Badge
      Bonus Saver Account
      Maximum rate
      standard interest rate
      Govt Deposit Guarantee
      1.20% p.a. (for $0 to $250,000)
      0.10% 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 Everyday or Glide transaction accounts.

      Winner of a Mozo Experts Choice Award 2021 in the Regular Saver category. No monthly account fees and no minimum balance requirements.

      Details
    • Boost Saver with Go Account
      Maximum rate
      standard interest rate
      Govt Deposit Guarantee
      1.20% p.a. (for $0 to $250,000)
      0.10% p.a.(for $0 and over)
      Yes up to $250,000

      Deposit $2,000 each month and make 5 eligible payments from your Go Account. If you are between 18 and 25 deposit $1,000.

      Enjoy a savings account bundled with a spending account. New customers can earn up to 5000 bonus Virgin Money points on purchases (conditions apply). Benefit together with a joint account

      Details
    • Serious Saver
      Maximum rate
      standard interest rate
      Govt Deposit Guarantee
      0.30% p.a. (for $0 to $1,000,000)
      0.15% p.a.(for $0 and over)
      Yes up to $250,000

      Bonus rate for first 3 months, reverting to 0.15% rate after

      $0 monthly account fee. Link to any Australian bank account.

      Details
    • Grow Saver
      Maximum rate
      standard interest rate
      Govt Deposit Guarantee
      0.65% p.a. (for $0 and over)
      0.10% p.a.(for $0 and over)
      Yes up to $250,000

      Make at least 1 deposit and no more than 1 withdrawal, including internal transfers or external payments.

      Earn a maximum interest rate of 0.65% per year. Pay no monthly fees. Set up in-app savings goals. Benefit with joint account options.

      Details
    • Online Saver
      Maximum rate
      standard interest rate
      Govt Deposit Guarantee
      1.10% p.a. (for $0 to $500,000)
      0.35% p.a.(for $0 and over)
      Yes up to $250,000

      Bonus rate for the first 4 months from account opening

      No account keeping fees. No minimum balance required. Unlimited phone and internet transactions.

      Details
    • WebSavings Account
      Maximum rate
      standard interest rate
      Govt Deposit Guarantee
      1.00% p.a. (for $2,000 and over)
      0.05% p.a.(for $2,000 and over)
      Yes up to $250,000

      Bonus rate for the first 4 months from account opening on balances over $2,000 only, available to new customers only.

      A high interest savings account that still lets you access your cash, no monthly account keeping fees and top up as many times as you like.

      Details
    • Flexi Saver
      Maximum rate
      standard interest rate
      Govt Deposit Guarantee
      0.25% p.a. (for $0 to $5,000,000)
      0.05% p.a.(for $0 to $5,000,000)
      Yes up to $250,000

      Increase balance by at least $300 in the month

      No upfront or ongoing fees. Unlimited free transactions. Great for regular contributions.

      Details
    • Fast Track Saver Account
      Maximum rate
      standard interest rate
      Govt Deposit Guarantee
      1.05% p.a. (for $1 to $250,000)
      0.05% p.a.(for $1 and over)
      Yes up to $250,000

      Ongoing bonus rate applied if in the previous month $1,000 or more is credited to the linked Day2Day Plus account and 5 eligible transactions are made by the linked account.

      Earn 1.05% p.a. Bonus Interest in the following month on your Fast Track Saver Account balance. Earn Bonus Interest on your savings, with no minimum balance required.

      Details

What is an online savings account?

Pretty much what it says on the tin. Like everything else these days, savings accounts are now available over the internet, so you don’t even have to leave your lounge room to stash your rainy day fund away.

When we talk about online savings accounts, it generally means savings accounts available exclusively online, as opposed to other savings accounts with internet banking options. In addition to your traditional banks, online accounts are often offered by online-only banking providers, which means there’s no physical bank branch involved. Whether or not that’s a good thing, is up to you to decide.

Online savings accounts: are they good value?

Short answer? We think so.

There’s been a trend towards online savings accounts among the winners of the Mozo Experts Choice Awards in the last two years, because they tend to offer savers competitive rates and convenient features. That’s made possible because online banks don’t have the overhead costs of their brick-and-mortar counterparts, so they can pass the savings on to customers in the form of high rates and low fees.

The bottom line is, they give you a pretty solid return on your money to help your savings pile grow faster.

Is an online savings account safe?

These days, online banking and online savings accounts are pretty secure. Of course there’s always the chance that something will go wrong - but there’s always that chance with traditional savings accounts as well.

There isn’t a huge difference anymore between the security features of online and traditional banks, because these days, even most traditional banks have online accessibility. Most online savings accounts come with security features like SMS codes for when you make online purchases, transaction monitoring and an automatic logout if your account has been open but inactive for a while.

Beyond that, in Australia, all savings accounts, including online savings accounts, are insured by APRA up to a balance of $250,000. That means that if anything happens to your online bank - say they go bust - the government guarantees that you won’t lose your savings. All savings accounts listed on our site are covered under the Government’s Deposits Guarantee scheme.

Is an online savings account right for me?

Only you can answer that, but we can certainly help you decide. Take a look at the pros and cons of an online savings account:

Pros and cons of an online savings account

Basically, you’re trading branch access and seeing real, live, human staff members for higher interest, less fees and 24/7 online access to your money. It depends on what’s important to you and how you like to save and spend your money.

Consider your linked transaction account

Another thing you’ll have to consider is how you’ll access the money in your online savings account. Most online banks are now able to provide ATM and debit card services through partner banks with physical presences, which means you should consider the best transaction account to link your online savings account with.

Some online banks will allow you to link your savings account to a transaction account at any bank, while others require you to have a transaction and savings account at the same bank. When you choose an online savings account, look at what linked transaction accounts are available to you as well and make sure they’re competitive, as this is often where you’ll be hit with extra fees and charges.

Tips to save more money

Keep up with bonus interest offers

A lot of savings accounts offer high bonus interest rates as long as you meet certain requirements, like a minimum deposit or zero withdrawals in a month. Keep an eye on the conditions and put strategies in place for meeting them - for example, having your salary deposited directly into a savings account is an easy way to meet minimum deposits.

Pay yourself first

Make saving an obligation, as much as paying rent or electricity bills. Work out a monthly budget, and decide how much money you can afford to put away each month. Then when you get your paycheck, that amount is automatic savings - no ifs or buts about it. Plus, this can help you keep up your bonus interest rates!

Set a goal

Having something to work towards will help keep you motivated to save, whether it’s something tangible - like a holiday to Rome - or just a figure you want to hit, say $10,000. Remember to keep it realistic, so you don’t end up getting discouraged. Check out our savings goal calculator to crunch the numbers and see if your current savings plan will get you to your goal!

Compare savings accounts

Take a break from cat videos, and head over to our savings account comparison table to find the best place to park your stash. It’s so quick and easy, you’ll be back to all that quality viewing material in no time.

^See information about the Mozo Experts Choice Savings Account Awards

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