Last year’s three reductions to the cash rate were not kind to the nation’s savers. And while the number of cuts to savings accounts has slowed down a bit as of late, this is perhaps an indication that there’s not much lower they could go. Right now, the average savings rate among accounts we track sits at a paltry 0.41% p.a.
The Westpac Life account currently leads among offerings from the major banks, giving savers interest rates of 0.40% p.a. so long as a few requirements are met. For those aged between 18 and 29, the maximum rate jumps up to a staggering 3.00% p.a. However, this only applies on balances up to $30,000, and the monthly conditions are a bit more numerous.
Bank of Queensland also offers rates of 2.50% p.a. with its Fast Track Starter Account. Like the Westpac Life account, there are age restrictions, and the maximum rate only applies to balances up to $10,000.
For older Australians, there are still a few worthwhile options out there. ING currently offers an ongoing bonus rate of 1.35% p.a., so long as a few monthly conditions are met. Rabobank offers an introductory rate of 1.35% p.a., which is available for the first 4 months before reverting to 0.25% p.a. And the Macquarie Savings Account comes with a base rate of 0.95% p.a., which is unconditional for balances up to $250,000.
Peter 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.
Latest savings account interest rates on Mozo - last updated 29 September 2021
Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
Mozo experts choice awards won:
Regular Saver - 2021
For more information about these awards go to the link at the bottom of this table.
Bonus Saver Account
Maximum rate
standard interest rate
Govt Deposit Guarantee
1.10% 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 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.
Winner of a Mozo Experts Choice Award 2021 in the Regular Saver category. No monthly account fees and no minimum balance requirements.
Maximum rate
1.10% p.a.(for $0 to $250,000)
standard interest rate
0.05% p.a.(for $0 and over)
Govt Deposit Guarantee
Yes up to $250,000
account fee per month
$0.00
Maximum rate conditions
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.
Intro bonus rate of 1.50% for first 3 months, reverting to 1.20% after. 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. No monthly fees. New customers can earn up to 5000 bonus Virgin Money points on purchases (conditions apply). Benefit together with a joint account
Enjoy a savings account bundled with a spending account. No monthly fees. New customers can earn up to 5000 bonus Virgin Money points on purchases (conditions apply). Benefit together with a joint account
Maximum rate
1.50% p.a.(for $0 to $250,000)
standard interest rate
0.10% p.a.(for $0 and over)
Govt Deposit Guarantee
Yes up to $250,000
account fee per month
$0.00
Maximum rate conditions
Intro bonus rate of 1.50% for first 3 months, reverting to 1.20% after. Bonus interest only applies when you deposit $2,000 into your Go Account and make 5 debit card purchases, direct debit or BPAY payments in the previous month. If you are between 18 and 25 you need to deposit $1,000 and fulfil the other criteria.
Access
BPay, Internet banking
Minimum balance
$0.00
Other restrictions
Bank and savings account only accessible through iOS or Android app. Bonus introductory interest rate of 1.50% available for accounts opened by 30 Nov 2021.
Kick start your savings with the 4 month introductory variable rate. No fees, no minimum balance, no minimum monthly deposit and no minimum term.
Maximum rate
1.35% p.a.(for $0 to $250,001)
standard interest rate
0.25% p.a.(for $0 to $250,001)
Govt Deposit Guarantee
Yes up to $250,000
account fee per month
$0.00
Maximum rate conditions
Bonus rate for the first 4 months from account opening, reverting to standard variable rate. Rate shown is for Personal customers and is subject to change. Different rates apply to Business/SMSF customers.
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.
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.
Maximum rate
1.05% p.a.(for $1 to $250,000)
standard interest rate
0.05% p.a.(for $1 and over)
Govt Deposit Guarantee
Yes up to $250,000
account fee per month
$0.00
Maximum rate conditions
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.
Access
BPay, Branch access, Internet banking
Minimum balance
$1.00
Other restrictions
Bonus interest rate criteria is effective from 1 February 2020.
Ongoing bonus rate applied and 5 eligible transactions are made by the linked accountif in the previous month $200 or more is credited to the linked Day2Day Plus account.
3.00 %P.A. Bonus Interest on balances up to $10,000 when the Bonus Criteria is met. Free withdrawals to your linked Day2Day Account while still earning Bonus Interest. Only available between the ages of 14 - 24 years.
3.00 %P.A. Bonus Interest on balances up to $10,000 when the Bonus Criteria is met. Free withdrawals to your linked Day2Day Account while still earning Bonus Interest. Only available between the ages of 14 - 24 years.
Maximum rate
2.50% p.a.(for $1 to $10,000)
standard interest rate
0.05% p.a.(for $1 and over)
Govt Deposit Guarantee
Yes up to $250,000
account fee per month
$0.00
Maximum rate conditions
Ongoing bonus rate applied if in the previous month $200 or more is credited to the linked Day2Day Plus account and 5 eligible transactions are made by the linked account.
Access
BPay, Branch access, Internet banking
Minimum balance
$1.00
Other restrictions
Bonus interest rate criteria is effective from 1 February 2020.
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Savings account interest rate resources
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.
How is my savings account interest calculated?
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.
Types of saving account interest rates
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.
Online interest rates
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.
Introductory interest rates
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.
Bonus interest rates
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!
Long term interest rates
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.
Kids saver interest rates
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.
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.
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:
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.
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.
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.
They are a very respected and secure bank that holds my funds firm without the stress and hassle. Their customer service is a prime example of what customer service from a bank should operate like. The bank also has flexible ways of accessing my funds on the go and fast with mobile support.
They are a very respected and secure bank that holds my funds firm without the stress and hassle. Their customer service is a prime example of what customer service from a bank should operate like. The bank also has flexible ways of accessing my funds on the go and fast with mobile support.
I NEEDED TO OBTAIN THE BALANCES OF MY ACCOUNTS WHICH HAD TO BE ON OFFICIAL ME BANK LETTERHEAD. UNFORTUNATELY ME ONLY PROVIDES A TRANSACTION LISTING WHICH DIDN'T FULFIL MY REQUIREMENTS IN THIS INSTANCE. THEY OFFERED TO FURNISH ME WITH A MANUAL BALANCE REQUEST LETTER - WHICH WOULD FULFIL MY REQUIREMENT. AFTER A WEEK I RECEIVED AN EMAIL, BUT WAS INCORRECT. THEY APOLOGISED AND SAID IT WOULD BE RESENT WITH CORRECT DATES AND BALANCES. THEY DID SEND AGAIN, BUT WITHOUT NECESSARY CORRECTIONS. I HAVE NOW RECEIVED 6 EMAILS - STILL NOT CORRECT. I HAVE HAD CONVERSATIONS WITH 7 OF THEIR CONSULTANTS WHO ARE ALWAYS POLITE, APOLOGISING FOR THE ERRORS. SOMEWHERE "UP THE CHAIN" THEY COULDN'T MANAGE TO GIVE ME THE CORRECT INFORMATION. THE LAST CONSULTANT OFFERED TO POST THE LETTER TO ME, GIVEN THAT THE MOST RECENT EMAIL COULD NOT BE OPENED WITH THE PASSWORD I HAD USED FOR ALL THE PREVIOUS EMAILS. SHE IS NOW SENDING THE LETTER VIA AUSTRALIA POST! I HAVE BEEN A LOYAL CUSTOMER FOR AT LEAST 15 YEARS. I AM NOW CANCELLING MY ACCOUNTS AND HEADING TO ANOTHER BANK. VERY DISAPPOINTED AND FRUSTRATED.
I NEEDED TO OBTAIN THE BALANCES OF MY ACCOUNTS WHICH HAD TO BE ON OFFICIAL ME BANK LETTERHEAD. UNFORTUNATELY ME ONLY PROVIDES A TRANSACTION LISTING WHICH DIDN'T FULFIL MY REQUIREMENTS IN THIS INSTANCE. THEY OFFERED TO FURNISH ME WITH A MANUAL BALANCE REQUEST LETTER - WHICH WOULD FULFIL MY REQUIREMENT. AFTER A WEEK I RECEIVED AN EMAIL, BUT WAS INCORRECT. THEY APOLOGISED AND SAID IT WOULD BE RESENT WITH CORRECT DATES AND BALANCES. THEY DID SEND AGAIN, BUT WITHOUT NECESSARY CORRECTIONS. I HAVE NOW RECEIVED 6 EMAILS - STILL NOT CORRECT. I HAVE HAD CONVERSATIONS WITH 7 OF THEIR CONSULTANTS WHO ARE ALWAYS POLITE, APOLOGISING FOR THE ERRORS. SOMEWHERE "UP THE CHAIN" THEY COULDN'T MANAGE TO GIVE ME THE CORRECT INFORMATION. THE LAST CONSULTANT OFFERED TO POST THE LETTER TO ME, GIVEN THAT THE MOST RECENT EMAIL COULD NOT BE OPENED WITH THE PASSWORD I HAD USED FOR ALL THE PREVIOUS EMAILS. SHE IS NOW SENDING THE LETTER VIA AUSTRALIA POST! I HAVE BEEN A LOYAL CUSTOMER FOR AT LEAST 15 YEARS. I AM NOW CANCELLING MY ACCOUNTS AND HEADING TO ANOTHER BANK. VERY DISAPPOINTED AND FRUSTRATED.
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