May savings accounts: Cuts continue in the lead-up to EOFY

Couple looking at their finances worried after savings interest rate cuts.

While reductions to savings account interest rates have slowed in the last month, cuts have still dominated rate changes. This has left the average ongoing savings rate at just 0.44%.

Market leaders change things up

After adding an ongoing bonus rate of 1.25% to its Saver Account, AMP is now second in line when it comes to savings interest rates (without age limits). However, the bank did drop its unconditional base rate by a huge 75bp to 0.10%.

This is good news for AMP customers who can meet the condition of depositing at least $250 every month, but not so great if that doesn't fit in your budget right now.

The account with the highest savings rate in Mozo’s database  has seen a change that customers may have started feeling the effects of last month.

The ING Savings Maximiser offers the top rate of 1.35%, but in March another interest-earning condition was introduced. To get that headline rate, customers now have to grow their balance each month by more than the accrued interest. This is on top of existing requirements to settle five transactions via the liked Orange Everyday account and deposit at least $1,000 into either account monthly.

There’s no dollar limit on the balance increase requirement, so it might not seem like a massive task. But for anyone struggling to cover essential costs in a post-JobKeeper and JobSeeker world, this could mean the difference between meeting that bonus criteria or earning next-to-nothing in interest.

Kids bank accounts: Are the kids alright?

With all of this in mind, budget-conscious parents might be thinking, “Won’t somebody please think of the children?”

In answer to their call, Mozo has just released the 2021 Piggy Bank Report to investigate parents’ perspectives around pocket money. While savings interest rates may be low right now, Mozo’s data shows 63% of parents are still giving their children pocket money, although the majority only do so as a reward for completing household chores.

Mozo Spokesperson Tom Godfrey said this can be a great way to teach kids the value of money. 

“It can also be a good way to introduce them to simple personal finance concepts such as saving, interest rates and the difference between credit and debit cards,” he said.

If you want to set up a savings account for your little’un to get them learning early – and take advantage of some of the better interest rates available to younger savers – check out the options below.

Compare kids savings accounts - last updated 23 October 2021

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • Progress Saver
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    ages
    0.25% p.a. (for $0 and over)
    0.01% p.a.(for $0 and over)
    Yes up to $250,000
    Under 18

    Bonus interest when you make a single deposit of $10 or more in a month and no withdrawals, fees or charges are processed to the account.

    Details
  • Scoots Super Saver
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    ages
    No Current Offer
    0.90% p.a.(for $0 to $50,000)
    Yes up to $250,000
    Up to 13

    Details
  • Smart Saver Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    ages
    1.20% p.a. (for $0 and over)
    0% p.a.(for $0 and over)
    Yes up to $250,000
    Under 25

    Increase account balance by $10 and no more than two withdrawals

    Details
  • Mighty Saver Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    ages
    0.95% p.a. (for $0 and over)
    0.10% p.a.(for $0 and over)
    Yes up to $250,000
    Under 18

    Minimum deposit of $10 and no withdrawals in the month

    Details
  • Mighty Saver Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    ages
    0.95% p.a. (for $0 and over)
    0.10% p.a.(for $0 and over)
    Yes up to $250,000
    Under 18

    Minimum deposit of $10 and no withdrawals in the month

    Details
  • Ziggy Kids Saver
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    ages
    1.25% p.a. (for $0 and over)
    0.01% p.a.(for $0 and over)
    Yes up to $250,000
    Under 15

    Minimum one deposit and no withdrawals in the month

    Details
  • First Saver Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    ages
    No Current Offer
    0.50% p.a.(for $2,000 and over)
    Yes up to $250,000
    Under 18

    Details
  • Young Saver
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    ages
    No Current Offer
    1.00% p.a.(for $0 to $5,001)
    Yes up to $250,000
    12 to 17 years

    Details

^See information about the Mozo Experts Choice Savings Account Awards

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