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Savings account interest rates: May 2024

Savings account rates may stay where they are for longer. The latest inflation data from the ABS found that CPI rose by 1% in March quarter, an increase over the reported 0.6% in the December quarter. However, CPI for the 12 months to the March quarter was still lower than the last release at 3.6%. 

As a result, economists at Commbank and NAB have pushed back their predictions for rate cuts to November. If the RBA continues to hold the cash rate at 4.35% or even decides to hike, then savers could continue to see some great rates offered by providers for months ahead. 

Current average savings account interest rate

It can be difficult to know if your savings account has a high or low interest rate compared to others. That’s why the Mozo data team has crunched the numbers and found the average rates across different savings account types. 

We’ve also averaged out the rates on offer from the Big 4 (Commbank, ANZ, NAB, Westpac) so you can get an idea of how providers compare to the big banks.

All Average
Big 4 Average
All Ongoing
3.47% p.a.
3.44% p.a.
Only Bonus
4.59% p.a.
4.79% p.a.
Only Introductory Rates
4.85% p.a.
4.69% p.a.
Only Unconditional Rates
1.40% p.a.
1.62% p.a.
Current Cash Rate: 4.35%

*Correct as of 1 May 2024

Top savings account interest rates in May 2024

By using the above averages as a baseline, you’ll be able to get a good idea of how far ahead the best savings account rates are. We’ve added some of the top high interest savings accounts below so you can compare based on your financial goals. 

  • Highest ongoing base savings account interest rate | 5.20% p.a. - The highest base rate with no age requirement is Australian Unity’s Freedom Saver account at 5.20% p.a. All you have to do is link it with an Australian Unity Transaction Account.
  • Highest bonus savings account interest rate | 5.55% p.a. - Currently, ME’s HomeME Savings Account leads the way for our database's highest ongoing conditional bonus interest rates at 5.55% p.a. 
  • Highest Big 4 bonus savings account interest rate | 5.00% p.a. - The highest savings account interest rates from the Big Four (no age requirement) come from the Westpac Life and NAB Reward Saver accounts. Both offer a rate of 5.00% p.a. if customers meet the bonus interest criteria each month. 
  • Highest introductory savings account interest rate | 5.75% (4 months) - The highest intro rate in the Mozo database is from the Rabobank High Interest Savings Account, offering customers a healthy 5.75% p.a. for the first 4 months (conditions apply). After the introductory period of 4 months, the rate reverts to the standard variable rate of 4.40% p.a.
  • Highest savings account interest rate for young people  | 5.55% p.a. - The First Option Bank Kids Bonus Saver offers an ongoing interest rate of 5.55% p.a. on balances up to $5,555 as long as you deposit $5 per month with no withdrawals. 

Savings Account interest rate trends

Bonus and introductory savings accounts have maintained some pretty high rates for the past few months. Mozo tracks 200 savings accounts and, according to our database, a few dozen are still sitting comfortably above 5.00%. 

Are interest rates going up or down?

The next RBA meeting will be 6-7 May, so we’ll see what the board decides to do in light of recent CPI data. We’ll likely see a hold as the board will be careful not to push the economy too far. This means that providers will elect to keep their rates steady or make only a few minor adjustments.

However, if the last leg of inflation continues to be stubborn, then it’s possible that the RBA could decide to increase rates further. In that scenario, providers may choose to increase rates.  

See also: Are interest rates going up? New forecasts from Westpac, NAB, ANZ, and CommBank

How do savings account interest rates work?

Savings account interest rates are variable, meaning that providers can change your rates at any time. Generally, any decision the RBA makes regarding the cash rate will determine whether rates see a major hike, pause, or cut.

To find out what’s happening with interest rates in more areas of banking, check out our snapshots for Home Loan Interest Rates, Personal Loan Interest Rates and Car Loan Interest Rates.

Latest savings account interest rates on Mozo - last updated 27 May 2024

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

    Compare
    Details
  • 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 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.

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    Details
  • 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, Bills 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.

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    Details
  • Mozo Expert Choice Badge
    AMP Saver Account

    5.40% 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. 2024 Mozo Experts Choice Award winner.

    Compare
    Details
  • 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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    Details
  • 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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    Details
  • MoneyMAX Account

    No Current Offer

    4.75% p.a.(for $1 and over)

    Yes up to $250,000

    Unlimited access 24/7 via Banking App, Phone & Internet Banking. Interest is calculated daily and paid monthly. No transaction fees or monthly service fees. No minimum balance or withdrawal restrictions. Online access only.

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    Details
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^See information about the Mozo Experts Choice Savings accounts Awards

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While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

Savings account interest rate resources

Reviews, news, tips and guides to help find the best savings account for you.

What is a savings account?

Savings accounts are a low-risk place to stash and grow (through interest) the money you aren't spending on essentials like housing and food. 

Unlike a term deposit, you have access to your savings any time you need it, meaning you're free to withdraw your funds when you need to for that big purchase or holiday you've been saving up for. 

How is my savings account interest calculated?

Savings interest is usually compounded daily and paid monthly. This means the interest you earn is counted as part of your savings balance and constantly grows. 

Check out our savings calculator to work out what your interest rate is earning you.

For example, if you have $5,000 in your savings account and earn 5.00% p.a., your balance would grow to $5,256 after one year – and that's without any extra deposits you make. 

Now say if you deposited an extra $50 each week from your paycheque. You'd end up with a savings balance of $7,916 after just one year, having earned an additional $316 just by being a diligent saver. 

Types of saving account interest rates

There are four main kinds of interest rates you'll encounter when you compare savings accounts: 

1. Ongoing (base) interest rates

Ongoing interest rates don't require customers to jump through hoops to earn the savings account's highest rates (e.g. depositing $1,000/month). The rate is simply the rate. 

2. Bonus (conditional) interest rates

Bonus interest rates come with strings attached, but they can often offer some of the highest savings account rates in the market. 

To get the account's highest savings rate, you'll have to meet certain conditions (e.g. growing your balance each month), otherwise your savings rate can drop dramatically. Good for those with a consistent income. 

Bonus interest rate criteria3. Introductory interest rates

Introductory savings rates usually draw customers in with a high savings account rate for a set period of time (e.g. 3 or 4 months), before it drops down to the standard rate. 

It's like a welcome offer, hoping you'll stick around after the intro period ends. 

4. Kids/youth interest rates:

Kids savings accounts offer rates exclusively for kids or young people (up to about 35 usually) and will often waive any of the usual bonus interest conditions that come with account geared towards adults. 

Picture of Peter Marshall
Peter Marshall
RG146
Financial Services Specialist

Peter Marshall has been working in the Australian banking and finance industry for over 20 years and oversees Mozo’s extensive product database. He is regularly sought out for his expert commentary and analysis on banking and interest rates trends by print, radio and TV media.

FAQs about savings account interest rates

We've covered what savings accounts are and the types of interest they offer, but there might still be one or two things you're in the dark about. Below, we've compiled a few key questions to put you on the right track to finding the perfect savings account.

How do interest rates affect my savings?

Like home loans and term deposits, savings account rates move in line with the cash rate. When the Reserve Bank reduces official interest rates, banks are usually quick to cut their savings rates in kind. If, however, the RBA was to raise official interest rates, you can generally expect much more attractive returns on your savings.

What should I look for in a savings account?

There are a few key features to keep in mind when you’re shopping around for a competitive savings account. While securing the highest possible interest rate might seem like the most important thing, it can sometimes be a bit trickier than that. Keep an eye on these things when choosing a savings account:

  • High ongoing interest rate: When you compare savings accounts on the Mozo website, you’ll see special and standard interest rates. The high special rates are always very tempting, but it’s important to remember that these rates often don’t last more than a few months, or may be reliant on conditions that you can’t meet. That’s why it's important to look at the standard interest rate and make sure it is also competitive.
  • High introductory rate: A savings account with a high introductory interest rate is a great way to boost your savings. This is great because it isn’t reliant on withdrawal or deposit requirements - all you need to do is open the account.
  • Compulsory linked accounts: Some savings accounts, especially online ones, will require you to have a linked transactions account so you can transfer money to and from the savings account. Make sure that you’re not paying extra fees or charges with this account, or all your hard earned interest may not mean much.
  • Extra fees and charges: These days, most online banking is fee free, but make sure you’re not paying annual account fees or transaction fees. When you’re trying to maximise your savings, a high interest rate may not mean much if you’re paying extra fees on the account.
  • Monthly deposit requirements: Sometimes your interest rate will depend on you maintaining a minimum monthly balance or making a minimum monthly deposit. If you can’t do so, some banks will lower your interest rate for the month, or maybe not pay interest at all. So before you choose a savings account, it's a good idea to look closely at your budget and choose an account with conditions you can meet each month.
  • Withdrawal conditions: Your savings account is designed as a place to park your money and leave it there. That means there could be conditions or penalties for making withdrawals from it. Some accounts might not pay interest for the month in which you made a withdrawal, although some will allow one withdrawal without penalty. So if you can, leave your savings account alone, and check out a competitive transaction account instead.

How can I earn the most interest with my savings account?

If you’re looking to maximise your savings, earning interest is one of the easiest and low-risk ways to do it. Use some of these handy tips to help you make the most of your savings account interest rate.

  • Get online: Online banking is easy and efficient, and you can do it wherever and whenever you need to. Even better, online accounts usually come with no fees and high interest rates. If you don’t need to have branch access and are happy to manage your savings from the comfort of your own lounge chair, an account with an online provider is competitive and convenient.
  • Switch accounts regularly: You can take advantage of high introductory interest rates by switching accounts regularly. Most introductory periods last between 3 and 6 months, so when one runs out, you can close the account and open a different one. This can be a time consuming process and can be more of a hassle than it’s worth for some people, but one of the benefits of online banking is that it’s easier than ever to switch bank accounts.

How do I compare savings account interest rates?

You need to take a lot of things into account when choosing the right savings account for you: bonus and introductory interest rates, ongoing interest rates, fees and conditions. You’ll also need to know what kind of deposits your budget allows for and how you want to use your account. It can all seem a little overwhelming, so here at Mozo, we’ve taken some of the hard work out of it for you with these handy resources:

  • Savings account comparison page - check out all the latest interest rates available on savings account from a range of providers and choose the one that suits you best.
  • Savings account guides - we’ve got guides that cover all the important details you’ll need to know about when setting up a savings account that will earn you the most interest.
  • Reviews of savings accounts - there’s nothing better than first hand experience! Read reviews from customers on their savings accounts experiences.

You can also find out more about interest rates, how they work and what they mean for you by visiting our interest rate guides pages.