Mozo guides

Types of Savings Account

Different kinds of savings accounts

Whether you’re saving for a holiday, a home deposit or a new pair of shoes there’s a savings account out there for all savings scenarios! There are plenty of different types of savings account to choose from. Don’t be overwhelmed! Read this guide as we delve into the different types of savings accounts to help you decide which one best suits you and your hard earned savings. Then you can sit back and watch your savings grow!

Online Savings Accounts:

In an increasingly digitised world, the convenience of online access has attracted many savers. An online savings account gives you 24/7 access to your account from virtually anywhere on the planet (although, if you’re travelling, watch out for those IMT fees!). 

Thanks to lower bank overheads, these accounts usually come with higher interest rates and lower fees. They're typically linked to your transaction account, where income flows in and out through your debit cards or digital wallets. 


  • High-interest rates
  • Often no fees
  • Convenient access to banking, anytime and anywhere
  • No time wasted in queues or dealing with bank staff
  • Quick and easy account setup, all done online


  • No face-to-face interaction like in a traditional bank
  • No physical branches
  • Potential for website crashes or internet connectivity issues

Bonus Saver Accounts:

Bonus interest rate accounts are aimed at savers who meet a particular condition in order to earn their interest rate. These conditions can vary a lot depending on the providers. For instance, one account may require regular monthly deposits while another may require you to make a number of eligible purchases through a connected transaction account. If you fail to meet these requirements, you’ll usually find your interest rate reverting to a substantially lower base rate.

For those reasons, a bonus rate savings account is well suited if you’re a saver who is looking to compound their cash over a long time. These conditional rates can also be a good motivational tool if you’re a saver who finds themselves dipping into their cash funds often.


  • Rewards for disciplined saving 
  • Helps you reach your savings goals faster
  • Usually have higher rates 


  • Require certain conditions be met 
  • Withdrawals will likely result in a reversion to a lower base rate

Introductory rate savings account:

These accounts present new customers with momentary bonus rates, typically over a span of 3-6 months. These interest rates can be pretty high, sometimes even surpassing bonus interest rates. 

However, once you’ve gotten to the end of your introductory rate term, your interest will revert to a standard rate. Unfortunately, these are not always great. So an introductory rate savings account is much better suited for short-term savings objectives or for those who enjoy shopping around for the best rate on the market.


  • Entrancing high interest rates to boost your savings
  • Motivating stimulus to kick-start your saving habits
  • No specific prerequisites to earn the introductory bonus interest


  • The transition rate post-introductory period is generally lower.
  • The enticing high introductory rate is short-lived.

High Interest Savings Account

What better way to see your savings grow at a fast pace than with a high interest savings account. High interest savings accounts can refer to any of the previously mentioned accounts. The best high interest savings accounts are usually found in the online form (as mentioned above) and with no account service fees they offer great rates compared to standard branch access accounts. Bonus saver and introductory rate savings accounts also attract high interest rates but come with a strict criteria.


  • High return on your savings
  • Short term savings goals are reached quickly
  • 24/7 access to your online account


  • No human contact with online savings accounts
  • Limited transactions allowed
  • If you suddenly need to access the money it could take up to three business days to transfer the money
  • Some banks require an everyday transaction account to be linked to the savings account

Also, it’s important to keep in mind that a high interest rate is dependent on the economic climate of the time. For instance, during the pandemic interest rates were relatively low in comparison to the past decade. However, right now interest rates are currently at a point where a few high interest savings accounts are actually offering rates that start with a 5%.

Kids Savings account:

There’s no harm in introducing your children to the world of savings at an early age. A kids savings account is usually for children under 18 years and just like a basic savings account the balance earns monthly interest. However, some youth saver accounts will start in teens and end well into adulthood with some going as far as 35.

Most major banks, credit unions and building societies in Australia have accounts specifically designed for children. Read the Mozo guide on savings for children to help bring up savings-savvy kids!


  • Competitive ongoing interest rates
  • Bonus interest can be earned on top of the standard interest rate
  • Fees and charges are usually waived
  • Some youth saver accounts extend into early adulthood 


  • Monthly deposits must be made
  • Withdrawal restrictions
  • Just like regular savings accounts, interest rates
  • Once you hit the maximum age, you’ll likely revert to a standard interest rate account.

Alternative to savings account: Term Deposits

While the liquidity of a savings account is attractive to some, you might be less keen to ride the ups and downs of interest rates. Term deposits are one of the other ways you might think about increasing your savings with a fixed interest rate. However, if you need ready access to your savings, then a savings account remains the most useful option.  

Now you should have a good idea of the type of savings account that will suit you and your savings goals. For more of an inside story, check out what the Mozo community has to say over on our savings account reviews platform.

Cameron Thomson
Cameron Thomson
Money writer

Cameron has a Bachelor of Creative Writing and History, and a background in broadcast media from his time at 2SER Radio. This diverse set of skills has informed his analytical yet creative approach to dissecting financial data and uncovering long-term trends in consumer finance. Cameron is RG146 certified for Generic Knowledge and keeps a keen eye on current and historical deposit and savings rates on the Mozo database. Cameron is also interested in tracking the investment space, particularly share trading platforms, to help Aussie consumers save and invest their money more wisely.

^See information about the Mozo Experts Choice Savings Account Awards

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