long term savings accounts

Long term savings accounts

Long term savings accounts are the ideal place to park your money for a lengthy period of time, with the ultimate goal of building up your savings. Good savings habits deserve a good interest rate after all, and your nest egg can grow even more with the compound interest applied to a long-term account. Compare top long term savings rates below to get started.

Long term savings account comparisons on Mozo - last updated 27 July 2021

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    • Boost Saver with Go Account
      standard interest rate
      Maximum rate
      Govt Deposit Guarantee
      0.10% p.a.(for $0 and over)
      1.20% p.a. (for $0 to $250,000)
      Yes up to $250,000

      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. New customers can earn up to 5000 bonus Virgin Money points on purchases (conditions apply). Benefit together with a joint account

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      Details
    • Mozo Expert Choice Badge
      Bonus Saver Account
      standard interest rate
      Maximum rate
      Govt Deposit Guarantee
      0.10% p.a.(for $0 and over)
      1.20% p.a. (for $0 to $250,000)
      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.

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      Details
    • Grow Saver
      standard interest rate
      Maximum rate
      Govt Deposit Guarantee
      0.10% p.a.(for $0 and over)
      0.65% p.a. (for $0 and over)
      Yes up to $250,000

      Make at least 1 deposit and no more than 1 withdrawal, including internal transfers or external payments.

      Earn a maximum interest rate of 0.65% per year. Pay no monthly fees. Set up in-app savings goals. Benefit with joint account options.

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      Details
    • Online Saver
      standard interest rate
      Maximum rate
      Govt Deposit Guarantee
      0.35% p.a.(for $0 and over)
      1.10% p.a. (for $0 to $500,000)
      Yes up to $250,000

      Bonus rate for the first 4 months from account opening

      No account keeping fees. No minimum balance required. Unlimited phone and internet transactions.

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      Details
    • Serious Saver
      standard interest rate
      Maximum rate
      Govt Deposit Guarantee
      0.15% p.a.(for $0 and over)
      0.30% p.a. (for $0 to $1,000,000)
      Yes up to $250,000

      Bonus rate for first 3 months, reverting to 0.15% rate after

      $0 monthly account fee. Link to any Australian bank account.

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      Details
    • Fast Track Saver Account
      standard interest rate
      Maximum rate
      Govt Deposit Guarantee
      0.05% p.a.(for $1 and over)
      1.05% p.a. (for $1 to $250,000)
      Yes up to $250,000

      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.

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      Details
    • Flexi Saver
      standard interest rate
      Maximum rate
      Govt Deposit Guarantee
      0.05% p.a.(for $0 to $5,000,000)
      0.25% p.a. (for $0 to $5,000,000)
      Yes up to $250,000

      Increase balance by at least $300 in the month

      No upfront or ongoing fees. Unlimited free transactions. Great for regular contributions.

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      Details
    • WebSavings Account
      standard interest rate
      Maximum rate
      Govt Deposit Guarantee
      0.05% p.a.(for $2,000 and over)
      1.00% p.a. (for $2,000 and over)
      Yes up to $250,000

      Bonus rate for the first 4 months from account opening on balances over $2,000 only, available to new customers only.

      A high interest savings account that still lets you access your cash, no monthly account keeping fees and top up as many times as you like.

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^See information about the Mozo Experts Choice Savings accounts Awards

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Savings account resources

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

FAQ

Long term savings must-knows

We all know the value of saving money, and building up a nest egg should be a financial priority for all Australians. But when you're in it for the long haul, finding the perfect place to stash your cash is super important. 

To help you on your search for the right savings account, we’ve answered some commonly asked questions about long term savings accounts in Australia.

How do I keep on top of interest rates?

When the plan is to grow your savings in the long-term, it pays to keep an eye on interest rates. Since they move in line with the cash rate, they’re always subject to change. For an idea of where interest rates currently sit, plus a rundown of all the latest changes, visit our savings account interest rates

What is the minimum amount I need to deposit into my long term savings account?

This will depend on the savings account you opt for, as many banking providers will have their own deposit requirements. The good news is, many online savings accounts come with no minimum balance criteria at all, so you can start from scratch and build up an emergency savings fund.

Other long term savings options like term deposits, do generally have minimum deposit criteria which can be as low as $500 and capped at $100,000 depending on the bank and deposit term. Head over to our term deposits comparison page to assess current long term interest rates and fees.  

What is the difference between a base and bonus interest rate?

You might notice on our savings account comparison tables that we publish the standard or 'base' interest rate and the bonus interest rate attached to the account. A base rate is the ongoing interest rate you’ll receive as long as the savings account is open.

When it comes to bonus rate savings accounts, there are usually two types: introductory and conditional bonus rates. Introductory bonus rates usually only last between 3-6 months from when the account was opened. At the end of this period, the savings interest rate will revert back to the account’s base rate.

A conditional bonus rate offers a higher interest rate as long as you meet certain requirements by the bank. Some common examples of conditions include having a transaction account with the same provider and spending via a linked debit card, making a minimum deposit or no withdrawals in a month, or growing the account balance.  

What features should I look for in a long term savings account?

Possibly the most important feature of a savings account is the interest rate. While the goal is to earn as much interest as possible, just keep in mind that savings account rates are variable, so they can change over time. This is why you should regularly review your account to make sure you’re getting the best return on your money.

  • No fees: There’s no point in stashing away your hard earned savings only to pay pesky fees. While very few banks charge monthly fees on online savings accounts, some may still charge withdrawal penalties or transaction fees.
  • Withdrawal flexibility: Most savings accounts allow you to withdraw money whenever you want (unlike a term deposit) but some may drop bonus interest offers for the month when you withdraw or will charge a fee for over the counter withdrawals.
  • Other handy tools: Things like online banking and a linked transaction account can come in handy if you need quick access to your cash.
Picture of JP Pelosi
JP Pelosi
Managing editor

Jean-Paul (JP) Pelosi is an experienced journalist and editor who has contributed to many of Australia's leading media outlets including The Guardian, News.com.au, Domain.com.au, Investment Magazine and ANZ's Bluenotes. He has also edited news and communications for large financial services companies such as CommBank, Suncorp, Allianz and Amex. He loves a well told story and applying his editorial experience to content that readers both care about and enjoy. JP heads up our writing team.

More FAQs on long term savings accounts

How can I withdraw money from my savings account?

If you’d like to make a withdrawal from your savings account, you will have to transfer the funds to your linked everyday transaction bank account. So, although savings accounts are designed to make your rainy day more accessible, there’s still an extra step involved.

Something else to keep in mind is that if you do plan on making a withdrawal, you may have to give up your bonus interest rate. On the other hand, knowing this might actually be a great deterrent to stop you from spending your savings and keep your account balance high over the long term.

What happens if the rate on my long term savings rate is cut?

One of the many gripes that come with savings accounts is the possibility of an interest rate cut. If this happens you won’t be earning the same amount of interest you once did, which could impact your long term savings goals.

If you plan on using a savings account as a long term strategy, you’ll need to review your options regularly to make sure you’re still getting a good deal.

The great thing about online banking is that if your rate is no longer competitive it is really easy to switch banks. Most savings providers we have listed here on Mozo have online applications and you can have an account set up in a matter of minutes.

Is a savings account a good long term savings strategy?

Yes, a savings account does have the potential to be a good long term strategy, as long as you are disciplined enough to not dip into it for unnecessary expenses. Savings accounts can also come in handy because they are ‘at call’ products so if you ever need quick access to your cash in an emergency you can.

What alternatives are there to long term savings accounts?

However, if you think having easy access to your savings stash is too tempting, then you might want to consider a term deposit instead. What makes a term deposit different from a savings account is that once you deposit the funds into the account, it’s hands-off until the end of the term which, depending on the term you choose, can be anywhere between 1 month to 5 years.

And just remember that if you absolutely have to make a withdrawal on a term deposit, you will be hit with an early withdrawal fee.

Savings Account Reviews

ANZ Savings Account
Overall 1/10
Idiot staff and management

My 80 year old mother has been with ANZ for over 38 years!! She's accidentally put in an incorrect digit for her security code while paying a bill on bpay phone banking. They have locked her account. She has provided them with all her security information to verify her details and identity. They still refuse to unlock her account. A senior manager has stated she needs to go into a branch with her ID. There are stay at home orders and a stage 2 lockdown because of the DELTA variant of COVID and this idiot wants my 80 year old mother to attend a branch!11

Read full review

My 80 year old mother has been with ANZ for over 38 years!! She's accidentally put in an incorrect digit for her security code while paying a bill on bpay phone banking. They have locked her account. She has provided them with all her security information to verify her details and identity. They still refuse to unlock her account. A senior manager has stated she needs to go into a branch with her ID. There are stay at home orders and a stage 2 lockdown because of the DELTA variant of COVID and this idiot wants my 80 year old mother to attend a branch!11

Price
2/10
Features
2/10
Customer service
1/10
Convenience
1/10
Trust
1/10
Less
Jac, New South Wales, reviewed 8 days ago
Great Southern Bank Savings Account
Overall 10/10
A good company to be with.

I have been with this company for over fifty years, and I have never found a problem with their service.

Read full review

I have been with this company for over fifty years, and I have never found a problem with their service.

Price
10/10
Features
10/10
Customer service
10/10
Convenience
10/10
Trust
10/10
Less
Robert, Victoria, reviewed 13 days ago
Commonwealth Bank GoalSaver
Overall 7/10
Good savings account

Great saving account but wish interest was higher.

Read full review

Great saving account but wish interest was higher.

Price
8/10
Features
8/10
Customer service
8/10
Convenience
8/10
Trust
7/10
Less
Jessica, Victoria, reviewed 15 days ago

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