August was another rough month for savings accounts with providers cutting rates left and right. Currently, the average savings account rate sits at a paltry 0.64% p.a. That said, the best ongoing bonus rates remain above the best term deposit rates for the time being.
Among the big banks, NAB currently offers 0.90% p.a. on its Reward Saver account, ANZ offers 0.85% p.a. on its Progress Saver account, and CommBank offers 0.40% on its Goalsaver account. All require account holders to satisfy monthly conditions to receive the maximum rate.
The Westpac Life account continues to lead among offerings from the major banks, giving savers interest rates of 1.00% p.a. so long as they deposit any amount into their account each month. For those aged between 18 and 29, the maximum rate available jumps up to a staggering 3.00% p.a. Just keep in mind this only applies to balances up to $30,000, and the monthly conditions are a bit more numerous.
For Australians who don't meet the age requirements for the Life account, there are still some worthwhile options. Australian Unity currently offers ongoing bonus rates of 1.75% p.a., so long as account holders deposit at least $250 per month and make no withdrawals. Rabobank offers an introductory rate of 2.00% p.a. - the highest in our database - which is available for the first 4 months before reverting to 0.55% p.a. And Volt’s Savings Account comes with a base rate of 1.65% p.a., which is unconditional for balances up to $245,000.
^See information about the Mozo Experts Choice Savings accounts Awards
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