June savings snapshot: Low interest rates and Federal Budget support

People sitting at a desk looking over personal finance documents to calculate savings interest at tax time.

The trend of slow and steady interest rate reductions on savings accounts continued last month, with 10 cuts to ongoing bonus rates recorded by Mozo’s data team.

We did see one rate increase from MyState Bank, which brought its MyState Bonus Saver Account up 10 basis points to 1.20%. Customers can access this rate – which is the third highest savings interest rate without age restrictions in Mozo’s database – when they deposit $20 and make five debit transactions each month.

These changes kept the average ongoing bonus interest rate at 0.44% (the same as April’s figure), and left the big banks at their usual lower average of 0.21% in May.

What does the 2021 Federal Budget mean for your savings?

The highlight of the financial calendar in May is the unboxing of the Federal Budget. While it still doesn’t look like the RBA will budge on the cash rate, there were a few measures in the 2021/2022 Budget which could help boost savings accounts.

For starters, the Low and Middle Income Tax Offset which was set to expire next month has been extended for another year. This means earners with a taxable annual salary between $37,000 and $126,000 will continue to see tax rebates between $255 and $1,080 over the next financial year.

The government has also announced new or extended support packages for first home buyers, which could make saving for a property deposit a little easier. And if you’ve got a few rugrats who are not quite school age yet, you may see more savings as $1.7 billion has been added to the childcare subsidy.

How to get the most out of your tax return

Finance worker bees get busy in June as the end of financial year approaches, but it’s also a good time for all workers to ensure they’re getting every dollar they can out of their tax return. 

Check out these surprising things you can claim on tax, and research what does and doesn’t qualify as a tax deduction when you’re working from home as a starting point.

Then, make sure you’re getting a bumper return on your tax savings with these high interest-earning accounts.

Compare high interest savings accounts - last updated 31 July 2021

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
    • Mozo Expert Choice Badge
      Bonus Saver Account
      Maximum rate
      standard interest rate
      Govt Deposit Guarantee
      1.20% p.a. (for $0 to $250,000)
      0.10% 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.

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

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

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

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

      Details

^See information about the Mozo Experts Choice Savings Account Awards

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