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Savings account interest rates: March 2024

The Australian Bureau of Statistics (ABS) just released monthly CPI figures for January, showing a rate of inflation that had remained steady from the previous month at 3.40%. Despite seeming negative, it’s still marginally better than the 3.6% analysts forecasted.

When excluding volatiles (fruit, veg, and automotive fuel), inflation grew at a rate of 3.80% in January versus 4.00% in December. The RBA meets later this month, so we’ll have to wait and see how the central bank will respond to these numbers as they get closer to the 2-3% target range. 

Interestingly though, some providers have already begun to cut savings account rates. That is a good reminder that once the RBA starts its rate cut cycle, savings accounts will likely follow. 

Current average savings account interest rate

It can be difficult to know if your savings account has a high or low interest rate. That’s why the Mozo data team has crunched the numbers and found the average rates across different savings account types. 

We’ve also averaged out the rates on offer from the Big 4 (Commbank, ANZ, NAB, Westpac) so you can get an idea of how providers compare to the big banks.

All Average
Big 4 Average
All Ongoing
3.56% p.a.
3.44% p.a.
Only Bonus
4.64% p.a.
4.79% p.a.
Only Introductory Rates
5.08% p.a.
4.69% p.a.
Only Unconditional Rates
1.37% p.a.
1.62% p.a.
Current Cash Rate: 4.35%

*Correct as of 1 March 2024

Top savings account interest rates in March 2024

By using the above averages as a baseline, you’ll be able to get a good idea of how far ahead the best savings account rates are. We’ve added some of the top high interest savings accounts below so you can compare based on your financial goals. 

  • Highest ongoing base savings account interest rate | 5.20% p.a. - The highest base rate with no age requirement is Australian Unity’s Freedom Saver account at 5.20% p.a. All you have to do is link it with an Australian Unity Transaction Account.
  • Highest bonus savings account interest rate | 5.55% p.a. - Currently, ME’s HomeME Savings Account leads the way for our database's highest ongoing conditional bonus interest rates at 5.55% p.a. 
  • Highest Big 4 bonus savings account interest rate | 5.00% p.a. - The highest savings account interest rates from the Big Four (no age requirement) come from the Westpac Life and NAB Reward Saver accounts. Both offer a rate of 5.00% p.a. if customers meet the bonus interest criteria each month. 
  • Highest introductory savings account interest rate | 5.75% (4 months) - The highest intro rate in the Mozo database is from the Rabobank High Interest Savings Account, offering customers a healthy 5.75% p.a. for the first 4 months (conditions apply). After the introductory period of 4 months, the rate reverts to the standard variable rate of 4.40% p.a.
  • Highest savings account interest rate for young people (14-17) | 5.35% p.a. - The Virgin Money Boost Saver with Go Account for under 18 years old (Lock Saver Feature) offers an ongoing interest rate of 5.35% p.a., waiving the bonus interest rate conditions for those aged 14-17 years old. 

Savings Account interest rate trends

Bonus and introductory savings accounts have maintained some pretty high rates for the past few months. Mozo tracks 205 savings accounts and, according to our database, a few dozen are still sitting comfortably above 5.00%. 

Are interest rates going up or down?

CPI inflation data for the 12 months to December was recorded at 4.10%. The previous monthly CPI reports put the October inflation rate at 4.90%. If no major inflationary events occur, then it’s possible that rates could come down later this year.

While monthly inflation didn’t change between December and January at 3.40%, this was still better than what was expected due to strong wage growth. If inflation continues to slow, then rate cuts beginning at the latter half of the year seem likely.

See also: Are interest rates going up? New forecasts from Westpac, NAB, ANZ, and CommBank

How do savings account interest rates work?

Savings account interest rates are variable, meaning that providers can change your rates at any time. Generally, any decision the RBA makes regarding the cash rate will determine whether rates see a major hike, pause, or cut.

To find out what’s happening with interest rates in more areas of banking, check out our snapshots for Home Loan Interest Rates, Personal Loan Interest Rates and Car Loan Interest Rates.

Latest savings account interest rates on Mozo - last updated 19 March 2024

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

    Compare
    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
  • 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.

    Compare
    Details
  • High Interest Save Account

    5.10% p.a. (for $0 to $250,000)

    0.10% p.a.(for $0 and over)

    Yes up to $250,000

    Deposit at least $200 to either Spend or Save account from an external source each month.

    No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.

    Compare
    Details
  • Hero Saver

    4.60% p.a. (for $0 to $250,001)

    1.00% p.a.(for $0 to $5,000,001)

    Yes up to $250,000

    Minimum deposit of $200 and no withdrawals in the month.

    Earn a generous variable rate on balances up to $250,001 each month you deposit at least $200 (excluding interest) on or before the last business day each month and make no withdrawals during the month. $0 account maintenance fees. Create a goal, set up regular deposits and track your progress on the Bankwest app.

    Compare
    Details
  • Mozo Expert Choice Badge
    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
  • Reward Saver

    5.25% p.a. (for $0 to $100,000)

    0.30% p.a.(for $0 and over)

    Yes up to $250,000

    Earn a high interest bonus rate if you hold an eligible transaction account and meet the bonus rate conditions (T&Cs apply). Only requires $1 to open. Free e-banking transactions. No monthly service fees to pay. Access your account via e-banking or the Bendigo Bank app. Not applicable to business customers.

    Compare
    Details
  • Mozo Expert Choice Badge
    Life - 18-29 years old

    5.20% p.a. (for $0 to $30,000)

    2.00% p.a.(for $0 and over)

    Yes up to $250,000

    Make 5 eligible card purchases per month with a Westpac Choice account and min 1 deposit and higher balance than at the beginning of the month in Life savings account.

    Are you 18 - 29 years of age? Earn up to a generous variable interest rate on your savings when you spend and save with Westpac. For individuals aged 18 to 29 on Westpac Life account balances up to $30,000.

    Compare
    Details
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^See information about the Mozo Experts Choice Savings accounts 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.

Savings account interest rate resources

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

What is a savings account?

Savings accounts are a low-risk place to stash and grow (through interest) the money you aren't spending on essentials like housing and food. 

Unlike a term deposit, you have access to your savings any time you need it, meaning you're free to withdraw your funds when you need to for that big purchase or holiday you've been saving up for. 

How is my savings account interest calculated?

Savings interest is usually compounded daily and paid monthly. This means the interest you earn is counted as part of your savings balance and constantly grows. 

Check out our savings calculator to work out what your interest rate is earning you.

For example, if you have $5,000 in your savings account and earn 5.00% p.a., your balance would grow to $5,256 after one year – and that's without any extra deposits you make. 

Now say if you deposited an extra $50 each week from your paycheque. You'd end up with a savings balance of $7,916 after just one year, having earned an additional $316 just by being a diligent saver. 

Types of saving account interest rates

There are four main kinds of interest rates you'll encounter when you compare savings accounts: 

1. Ongoing (base) interest rates

Ongoing interest rates don't require customers to jump through hoops to earn the savings account's highest rates (e.g. depositing $1,000/month). The rate is simply the rate. 

2. Bonus (conditional) interest rates

Bonus interest rates come with strings attached, but they can often offer some of the highest savings account rates in the market. 

To get the account's highest savings rate, you'll have to meet certain conditions (e.g. growing your balance each month), otherwise your savings rate can drop dramatically. Good for those with a consistent income. 

Bonus interest rate criteria3. Introductory interest rates

Introductory savings rates usually draw customers in with a high savings account rate for a set period of time (e.g. 3 or 4 months), before it drops down to the standard rate. 

It's like a welcome offer, hoping you'll stick around after the intro period ends. 

4. Kids/youth interest rates:

Kids savings accounts offer rates exclusively for kids or young people (up to about 35 usually) and will often waive any of the usual bonus interest conditions that come with account geared towards adults. 

Picture of Peter Marshall
Peter Marshall
RG146
Financial Services Specialist

Peter Marshall has been working in the Australian banking and finance industry for over 20 years and oversees Mozo’s extensive product database. He is regularly sought out for his expert commentary and analysis on banking and interest rates trends by print, radio and TV media.

FAQs about savings account interest rates

We've covered what savings accounts are and the types of interest they offer, but there might still be one or two things you're in the dark about. Below, we've compiled a few key questions to put you on the right track to finding the perfect savings account.

How do interest rates affect my savings?

Like home loans and term deposits, savings account rates move in line with the cash rate. When the Reserve Bank reduces official interest rates, banks are usually quick to cut their savings rates in kind. If, however, the RBA was to raise official interest rates, you can generally expect much more attractive returns on your savings.

What should I look for in a savings account?

There are a few key features to keep in mind when you’re shopping around for a competitive savings account. While securing the highest possible interest rate might seem like the most important thing, it can sometimes be a bit trickier than that. Keep an eye on these things when choosing a savings account:

  • High ongoing interest rate: When you compare savings accounts on the Mozo website, you’ll see special and standard interest rates. The high special rates are always very tempting, but it’s important to remember that these rates often don’t last more than a few months, or may be reliant on conditions that you can’t meet. That’s why it's important to look at the standard interest rate and make sure it is also competitive.
  • High introductory rate: A savings account with a high introductory interest rate is a great way to boost your savings. This is great because it isn’t reliant on withdrawal or deposit requirements - all you need to do is open the account.
  • Compulsory linked accounts: Some savings accounts, especially online ones, will require you to have a linked transactions account so you can transfer money to and from the savings account. Make sure that you’re not paying extra fees or charges with this account, or all your hard earned interest may not mean much.
  • Extra fees and charges: These days, most online banking is fee free, but make sure you’re not paying annual account fees or transaction fees. When you’re trying to maximise your savings, a high interest rate may not mean much if you’re paying extra fees on the account.
  • Monthly deposit requirements: Sometimes your interest rate will depend on you maintaining a minimum monthly balance or making a minimum monthly deposit. If you can’t do so, some banks will lower your interest rate for the month, or maybe not pay interest at all. So before you choose a savings account, it's a good idea to look closely at your budget and choose an account with conditions you can meet each month.
  • Withdrawal conditions: Your savings account is designed as a place to park your money and leave it there. That means there could be conditions or penalties for making withdrawals from it. Some accounts might not pay interest for the month in which you made a withdrawal, although some will allow one withdrawal without penalty. So if you can, leave your savings account alone, and check out a competitive transaction account instead.

How can I earn the most interest with my savings account?

If you’re looking to maximise your savings, earning interest is one of the easiest and low-risk ways to do it. Use some of these handy tips to help you make the most of your savings account interest rate.

  • Get online: Online banking is easy and efficient, and you can do it wherever and whenever you need to. Even better, online accounts usually come with no fees and high interest rates. If you don’t need to have branch access and are happy to manage your savings from the comfort of your own lounge chair, an account with an online provider is competitive and convenient.
  • Switch accounts regularly: You can take advantage of high introductory interest rates by switching accounts regularly. Most introductory periods last between 3 and 6 months, so when one runs out, you can close the account and open a different one. This can be a time consuming process and can be more of a hassle than it’s worth for some people, but one of the benefits of online banking is that it’s easier than ever to switch bank accounts.

How do I compare savings account interest rates?

You need to take a lot of things into account when choosing the right savings account for you: bonus and introductory interest rates, ongoing interest rates, fees and conditions. You’ll also need to know what kind of deposits your budget allows for and how you want to use your account. It can all seem a little overwhelming, so here at Mozo, we’ve taken some of the hard work out of it for you with these handy resources:

  • Savings account comparison page - check out all the latest interest rates available on savings account from a range of providers and choose the one that suits you best.
  • Savings account guides - we’ve got guides that cover all the important details you’ll need to know about when setting up a savings account that will earn you the most interest.
  • Reviews of savings accounts - there’s nothing better than first hand experience! Read reviews from customers on their savings accounts experiences.

You can also find out more about interest rates, how they work and what they mean for you by visiting our interest rate guides pages.