Since the RBA began cutting official interest rates back in June, banks have hacked an average of 0.56% off their range of savings accounts. Right now, the average savings account ongoing rate sits at 0.97%, which puts it well below the inflation rate of 1.70%.
Last month saw a few cuts to savings rates, but they weren’t too large, and generally give the impression that we’ve hit a plateau. When the RBA next cuts official interest rates, savers probably won’t feel the full force, with banks more likely to reduce their savings rates by 0.10% to 0.15% than the full 0.25%.
Currently, there are still accounts out there that offer attractive rates — you’ll just have to look a little bit harder. Among the top 5 highest ongoing bonus interest rates in the market, four are online banks - Up, 86 400, UBank and ME Bank - with Bank of Queensland rounding out the list. All have interest rates between 2.05% p.a and 2.25% p.a., assuming all conditions are met.
Page last updated December 13, 2019
Promoted
2.10% 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.
1.04% 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 2.10% ongoing bonus rate when you deposit at least $200 into either account each month. No international fees. Winner of the Mozo Experts Choice Awards 2019 as Savings Bank of the Year.
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
1.95% 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.
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
2.30% p.a. (for $0 to $500,000)
Bonus rate for the first 4 months from account opening
0.85% p.a.(for $0 and over)
$0.00
Earn the variable introductory rate, currently 2.30% 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 0.85% 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
2.00% p.a. (for $5,000 and over)
Minimum deposit of $50 and no withdrawals. Reverts to bonus rate of 0.90% after the first 4 months.
0% p.a.(for $0 and over)
$0.00
Earn bonus interest by saving as little as $50 a month with no withdrawals. No monthly account keeping fees.
Minimum deposit of $50 and no withdrawals. Reverts to bonus rate of 0.90% after the first 4 months.
ATM, EFTPOS, Visa Debit, Cheque book, BPay, Branch access, Phone banking, Internet banking, Bank@Post
$0.00
Read our Mozo Review to learn more about the Reward Saver Account
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Promoted
No Current Offer
1.30% p.a.(for $0 and over)
$0.00
One simple competitive 1.30% rate of interest across all balances. Flexibility to add and withdraw money freely with no monthly interest conditions.
n/a
BPay, Phone banking, Internet banking
$0.00
Read our Mozo Review to learn more about the eSaver Flexi
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Promoted
1.85% p.a. (for $0 to $250,000)
Minimum deposit of $200 excluding interest and no withdrawals in the month
0.01% p.a.(for $0 to $5,000,000)
$0.00
$0 account maintenance and transaction fees and no minimum opening balance needed. Interest calculated daily and paid monthly.
Minimum deposit of $200 excluding interest 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
2.05% p.a. (for $0 to $250,000)
Ongoing bonus rate if you make at least four tap & go™ payments per month with your Everyday Transaction Account debit card. Purchases must be processed in calendar month to be eligible for bonus interest.
0.35% p.a.(for $0 and over)
$0.00
Receive the maximum saving rate for any month which you make at least four tap & go purchase with your ETA debit Mastercard, on balances up to $250,000. No monthly fees and no account keeping fees. Winner of Mozo Experts Choice Awards 2019 – Regular Saver.^
Ongoing bonus rate if you make at least four tap & go™ payments per month with your Everyday Transaction Account debit card. Purchases must be processed in calendar month to be eligible for bonus interest.
Internet banking
$0.00
Must link to a transaction account
Read our Mozo Review to learn more about the Online Savings Account
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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.
