Laziness and loyalty: new survey exposes the key factors slugging Aussies with the lowest savings rates

14 small white piggy banks placed randomly on a green surface.

1 in 6 Aussies say they’ve never changed savings accounts “because it’s too much effort”, but a new report from Mozo has found that those of us who haven’t bothered switching are lagging behind with the lowest interest rates.

According to Mozo’s ‘SOS’ Savings Report for 2024, Aussie’s who said it’s too much effort to compare and switch have a savings interest rate of 3.12% p.a. on average – the lowest of all those surveyed. That’s two percentage points below the best rate in our database of 5.55% p.a. at the time of writing.

But it’s not just laziness that leads to the lowest savings rates – loyalty plays a part too.

No reward for loyalty

Aussies who switched savings accounts “for more convenience / to have all my accounts in one place” were surprisingly found to have the second-lowest savings rate of those surveyed, coming in at 3.46% p.a. on average.

Mozo’s personal finance expert, Rachel Wastell, says there’s no reward for loyalty when it comes to savings accounts. “Switching for convenience is not likely to get you the best return, as full-service banks often have lower rates than specialist providers,” she said. 

The survey also revealed that those who hadn’t switched savings accounts because “I'm happy with my current savings provider” had the third-lowest interest-earning rate of 3.70% p.a., further suggesting loyalty is holding Aussies back from getting good savings returns.

“Savers should look for a high rate first and foremost if they want to make their money count for more,” said Wastell.

Why you should switch savings accounts

If you’re keen to get a better savings interest rate, you can start by comparing high interest savings accounts. Or, you can head straight to the Mozo Experts Choice Awards for Savings Accounts and take a look at this year’s winners list to start your comparisons.

It’s worth noting that many providers on the winner’s list only offer the highest interest returns when you meet a set of bonus conditions, such as depositing a certain amount of money into your account each month, which means some work is required on your behalf.

But according to a report by the Australian Competition and Consumer Commission (ACCC), the vast majority of savers aren’t doing this, as 71% of bonus interest rate accounts didn’t meet the conditions to receive their bonus in the first half of 2023.

If you don’t want the caveat of meeting bonus rate conditions in order to earn a higher interest rate, you’re better off comparing savings accounts with a high standard (or base) rate – that way, you’ll get a return on your savings with little effort (see the winners of the No Strings savings category in our Mozo Experts Choice Awards).

If you can meet those bonus conditions, however, Mozo’s analysis shows your savings will be better off. With an average bonus interest rate of 4.51% p.a., you would receive an extra $422 in interest over 1 year (on a balance of $10k) by meeting the bonus conditions.

Ready to get a better savings interest rate? Start comparing below.

Compare savings accounts on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 274 savings accounts.
Last updated 25 July 2024 Important disclosures
  • Savings Account

    5.35% p.a. (for $0 to $250,000)

    4.75% p.a.(for $0 to $1,000,000)

    Yes up to $250,000

    Bonus variable rate is available for the first 4 months.

    Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2024 Mozo Experts Choice Award winner.

    Compare
    Details
  • Mozo Expert Choice Badge
    Savings Maximiser

    5.50% p.a. (for $0 to $100,000)

    0.55% p.a.(for $0 and over)

    Yes up to $250,000

    For customers who have an Orange Everyday account, deposit $1000 into a personal ING account, make 5 eligible transactions and grow their nominated Savings Maximiser account each month.

    Great variable rate every month when you grow your balance each month in addition to other eligibility criteria. No ING fees to pay. Save even more with ING Everyday Round Up. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^

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    Details
  • Reward Saver Account

    5.25% p.a. (for $0 to $1,000,000)

    0% p.a.(for $0 and over)

    Yes up to $250,000

    Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.

    Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.

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    Details
  • Savings+Bonus

    5.00% p.a. (for $0 to $250,000)

    2.00% p.a.(for $0 to $250,000)

    Yes up to $250,000

    Minimum $100 monthly deposit and no withdrawals to earn bonus interest each month.

    Earn a generous interest rate on your at-call savings (T&Cs apply). Interest is calculated daily and paid to you monthly. A $5 monthly membership fee will not apply if your total account balances with First Option Bank exceed $1,000 or you have a credit card or loan with the bank.

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    Details
  • Bonus Saver Account

    5.00% 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 Glide transaction account.

    Start saving and earn interest with just a $20 deposit and make 5 eligible transactions each month. No fees or penalties for withdrawing money.

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    Details

^See information about the Mozo Experts Choice Savings Account Awards

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While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.