I have long-term savings goals. What kind of savings account do I use?

Did you know that if your savings are in an every day savings account instead of a high interest savings account, you could be missing out on a lot of extra savings?

When people think about earning interest on their savings, they tend to think of term deposits. But if you don’t want to lock your money away for a certain period of time, a high interest savings account is a good option.

With interest rates rising, now is a good time to open a high interest savings account. The current highest interest rate on the Mozo database is 5.75% p.a. (for the first 4 months) and there are other savings accounts offering 5.5% ongoing.

With a 5.75% interest rate, you could be earning an extra $57.50 per month on a savings balance of $10,000 which is much better than just letting your savings sit in a normal savings account not earning interest.

What is a high interest savings account?

Generally, high interest savings accounts work like your usual savings account. However, there are usually conditions that have to be met every month before you can earn the highest interest rate on offer.

These bonus rates often come with requirements such as depositing a certain amount per month or making a certain amount of transactions on a linked credit or debit card.

While this may seem like a lot of effort, the bonus interest you will be earning on your savings is well worth it.

Should you opt for a term deposit or a high interest savings account? 

Both are good options for earning extra interest on your savings but one option may work better for you, depending on your individual circumstances.

Term deposits

If you know you won’t be needing to access your savings for a while, a term deposit is a good option. With most term deposits, there are various time periods you can choose from. From 3 months, 6 months, 12 months, 18 months, all the way up to 5 years so you can choose a time frame that works for you.

Just be aware that the interest rates for shorter term deposits are usually much lower than for term deposits of a year or more, so it may only be worth opening a term deposit if you know you won’t need to access your money for over a year.

It is also worth noting that with most term deposits, you will not be able to withdraw your money before the term deposit matures without losing any extra interest you would have made on your money. You also can’t add any extra savings to the term deposit. 

Here’s a look at some of the term deposit rates available now.

Term deposit comparisons on Mozo - last updated 18 April 2024

Search promoted term deposits below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Term Deposit

    4.75% p.a.
    1 year

    $1,000

    Yes up to $250,000

    Enjoy a competitive fixed interest with the choice of 1 month to 5 year terms. Start with as little as $1,000. Interest paid monthly, quarterly, half yearly or yearly. Receive a 0.10% loyalty bonus when you automatically reinvest your Term Deposit before maturity. (Terms and Conditions apply)

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  • Term Deposit

    4.80% p.a.
    9 months

    $1,000

    Yes up to $250,000

    Enjoy the certainty of a fixed interest rate combined with the convenience of online banking to set up and manage your term deposit at maturity. You can start investing from as little as $1,000 or up to $5,000,000.

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  • Mozo Expert Choice Badge
    Term Deposit

    4.85% p.a.
    6 months

    $1,000

    Yes up to $250,000

    Enjoy a competitive fixed interest with the choice of 1 month to 5 year terms. Start with as little as $1,000. Interest paid monthly, quarterly, half yearly or yearly. Receive a 0.10% loyalty bonus when you automatically reinvest your Term Deposit before maturity. (Terms and Conditions apply)

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  • Online Term Deposit

    4.85% p.a.
    9 months

    $5,000

    Yes up to $250,000

    No set-up or account keeping fees. Deposits up to $250,000 per customer are guaranteed by the Australian Government. Mozo Experts Choice winner for Term Deposit 2022.

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High interest savings accounts:

If you want to keep your savings growing while also being able to access it at any time, then a high interest savings account is probably a more suitable option.

Just make sure that you read and understand any conditions that have to be met every month to ensure you get the maximum interest rate!

Here’s a look at some of the high interest savings account rates available now.

Savings account comparisons on Mozo - last updated 18 April 2024

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    High Interest Savings Account

    5.75% p.a. (for $0 to $250,001)

    4.40% p.a.(for $0 to $250,001)

    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.

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  • 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 four months.

    Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.

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  • 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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  • Mozo Expert Choice Badge
    AMP Saver Account

    5.40% p.a. (for $0 to $250,000)

    1.20% p.a.(for $0 to $5,000,000)

    Yes up to $250,000

    Enjoy a bonus rate when you deposit at least $1000 per month with the AMP Saver Account.

    No account fees. Unlimited transactions when linked to an AMP Bank transaction account. Easy online access to your money. Option to link your savings account to an everyday transaction account. 2024 Mozo Experts Choice Award winner.

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  • 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

    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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* Different interest rates apply to different amounts or different interest payment frequencies.

^See information about the Mozo Experts Choice Savings Account Awards

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