Savings account rates have been tumbling for a while now, and that trend doesn’t look like it will be stopping any time soon. If the RBA reduces the cash rate in the coming months, we’ll likely see larger cuts levelled against savings accounts than home loans, as banks try to maintain a healthy margin between the two.
Currently, the average ongoing savings rate is 0.98% p.a., while the average among the big four banks is 0.57% p.a. Among savings accounts tracked by Mozo, only 11 offer rates of at least 2.00% p.a.
As expected, neobanks have emerged as the ones to watch in the savings arena, with 86 400 and Up both offering rates of 2.25% p.a. so long as certain conditions are met, while Xinja and Volt offer no strings base savings rates of 2.25% p.a. and 2.15% p.a., respectively.
To find out how interest rates are tracking in other banking products for March check out our snapshot for Home Loan Interest Rates or Term Deposit Interest Rates.
Page last updated March 29, 2020
Promoted
2.65% p.a. (for $0 to $500,000)
Bonus rate for the first 6 months from account opening on the first $500,000 deposited. For new Saver customers only.
1.05% p.a.(for $0 to $5,000,000)
$0.00
Competitive interest rates, calculated daily and paid monthly. A bonus interest rate of 2.11% per annum for the first 4 months and the first $250,000 deposited (For new Saver customers only, this offer is not available for existing or prior Saver/eASYSaver customers). Winner of the Mozo Experts Choice Awards 2020 in Kick Start Savings & No Strings Savings.
Bonus rate for the first 6 months from account opening on the first $500,000 deposited. For new Saver customers only.
Phone banking, Internet banking
$0.00
Read our Mozo Review to learn more about the Saver Account
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Promoted
2.00% p.a. (for $0 to $150,000)
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.
0.30% p.a.(for $0 and over)
$0.00
Ongoing variable rate. Winner of a Mozo Experts Choice Award 2020 in the Regular Saver category^. Enjoy bonus interest when you deposit $20 or more in to your Bonus Saver Account and make 5 or more eligible VISA Debit card transactions from your linked account each month (T&Cs apply).
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.
BPay, Phone banking, Internet banking
$0.00
Must link to a transaction account
Read our Mozo Review to learn more about the Bonus Saver Account
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Promoted
1.90% p.a. (for $0 and over)
Grow your balance by $200 or more and make no more than one withdrawal in the month.
0.20% p.a.(for $0 and over)
$0.00
Earn bonus interest for every month that you grow your net balance by $200 or more (excluding interest) and make no more than one withdrawal. Ideal for helping you reach those long-term savings goals. No monthly account-keeping fees.
Grow your balance by $200 or more and make no more than one withdrawal in the month.
Branch access, Phone banking, Internet banking
$0.00
Read our Mozo Review to learn more about the Growth Saver Account
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Promoted
1.85% p.a. (for $0 to $200,000)
Bonus interest only applies on funds held in linked USaver account if $200 deposited into either account in the month from an external source.
0.79% p.a.(for $0 to $5,000,000)
$0.00
The UBank Ultra Transaction Account works hand in hand with the USaver. Receive a generous 1.85% ongoing bonus rate when you deposit at least $200 into either account each month. No international fees.
Bonus interest only applies on funds held in linked USaver account if $200 deposited into either account in the previous month from an external source and the combined balance is less than $200,000.
Phone banking, Internet banking
$0.00
Read our Mozo Review to learn more about the USaver with Ultra Transaction Account
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Promoted
1.50% p.a. (for $0 to $250,000)
Minimum deposit of $200 and no withdrawals in the month.
0.01% p.a.(for $0 to $5,000,000)
$0.00
Be rewarded for making regular savings contributions and making no withdrawals. Interest is calculated daily and paid monthly.
Minimum deposit of $200 and no withdrawals in the month.
Phone banking, Internet banking
$0.00
Read our Mozo Review to learn more about the Hero Saver
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Promoted
2.10% p.a. (for $0 to $1,000,000)
No withdrawals in the month. Bonus rate for first 4 months, reverting to 0.20% bonus rate after*
0% p.a.(for $0 and over)
$0.00
$0 Monthly account fee. 2.60% p.a. 4 Month Introductory Variable Rate. 0.70% p.a. ongoing Variable Rate applicable every month you don’t make a withdrawal (both for the Introductory and Ongoing Variable Rates)
No withdrawals in the month. Bonus rate for first 4 months, reverting to 0.20% bonus rate after*
Phone banking, Internet banking
$0.00
Read our Mozo Review to learn more about the Serious Saver
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Promoted
2.05% p.a. (for $0 to $500,000)
Bonus rate for the first 4 months from account opening
0.35% p.a.(for $0 and over)
$0.00
Earn the variable introductory rate, currently 2.05% p.a., for the first 4 months while the account balance remains below $500,000 (interest rate may change throughout the period). At the end of the introductory period (or if your balance is $500,000 or more) you'll receive the 0.60% p.a. standard variable rate on the entire balance.
Bonus rate for the first 4 months from account opening
Phone banking, Internet banking
$0.00
Must link to a transaction account.
Read our Mozo Review to learn more about the Online Saver
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Promoted
1.70% p.a. (for $0 to $100,000)
Deposit $1,000 into a CUA transaction account from external source in the month.
0.05% p.a.(for $0 and over)
$0.00
No account fees and unlimited transactions via phone and internet. Bonus interest paid when you deposit $1000 per month from an external account to a CUA transaction account.
Deposit $1,000 into a CUA transaction account from external source in the month.
BPay, Branch access, Phone banking, Internet banking
$1.00
Must also hold a CUA transaction account to qualify for bonus interest rate.
Read our Mozo Review to learn more about the eSaver Reward
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Featured Product
1.95% p.a. (for $0 to $100,000)
For customers who have an Orange Everyday and deposit at least $1,000 from an external bank account and make at least 5 card purchases using your ING debit card each month
0.25% p.a.(for $0 and over)
$0.00
No ING fees. Great variable rate every month, no matter how many times you withdraw
For customers who have an Orange Everyday and deposit at least $1,000 from an external bank account and make at least 5 card purchases using your ING debit card each month
Phone banking, Internet banking
$0.00
Must link to a transaction account
Read our Mozo Review to learn more about the Savings Maximiser
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Promoted
1.50% p.a. (for $0 to $5,000,000)
Increase balance by at least $300 in the month
0.15% p.a.(for $0 to $5,000,000)
$0.00
Receive an extra 1.50% p.a. variable monthly bonus. Conditions apply.
Increase balance by at least $300 in the month (excluding interest)
BPay, Branch access, Phone banking, Internet banking
$0.00
Read our Mozo Review to learn more about the Flexi Saver
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^See information about the Mozo Experts Choice Savings Accounts Awards
Reviews, news, tips and guides to help find the best savings account for you.
A savings account is a low risk account where you can stash the savings that you don’t plan to use for daily expenses. Generally speaking, savings accounts usually require a low minimum balance, and are a good way to keep your money safe but still accessible.
Most savings accounts calculate and compound interest daily. This means that the amount of interest you earn is constantly growing, and you can boost it by making regular deposits into your savings account.
For example, if you have $1,000 in a savings account with an interest rate of 2.0% p.a., you’ll earn $20 in interest each year. If you were to add monthly deposits of $175, you could double your interest. Check out our savings calculator to work out what your interest rate is earning you.
Different types of savings accounts will have different interest rates attached to them. Here are some of the popular types of savings accounts and what interest rate you might expect from them.
For technology-savvy savers, online savings accounts are a great way to maximise your interest. Online banking cuts out overhead costs for the banks, which usually means higher interest rates and lower (if any) fees for you.
Offered as incentive to open an account, introductory interest rates usually apply for a period of 3-6 months from the time when you open the account. Intro rates are usually very high, but remember to check the standard rate as well before you open an account, because after the initial introductory period your interest will go back to the standard rate. An account with a high introductory rate is perfect if you’re saving for a short term goal, like a new car or a shopping spree.
These rates are offered as long as you meet certain conditions, usually something like a monthly minimum deposit or maximum withdrawal limit. Some only require you to make a certain amount of purchases each month using your linked everyday transaction account.
Bonus interest rates are higher than the account’s standard rate, sometimes by quite a bit, so it's worth checking out what you might have to do to be eligible. Knowing that your high interest rate may be conditional upon not withdrawing from your account is also a great motivator to stick to your budget!
If you want an account that you can leave your savings in for a longer period of time and you’re not interested in switching around to chase introductory or bonus rates, look for a savings account with a high standard interest rate. Take a look at Mozo’s long term savings account comparison to find out which bank is offering the best savings interest rates at the moment.
It’s never too early to introduce your kids to the importance of saving! You can start by opening a kids savings account. While these accounts generally don’t have any fees, and their introductory or bonus rates are competitive, these rates also often depend on conditions like a monthly minimum deposit. If you’re not sure that your child can meet the requirements, it's better to search for an account with a higher standard interest rate.
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.
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.
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:
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.
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:
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.
