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Simple switch could earn you $230

Aussies are being urged to chase down higher savings rates.

Tamika Seeto
·Finance Reporter
Updated ·2-min read
People walking and Australian money. Savings account concept.
Switching your savings account could earn you an extra $230 per year. (Source: Getty)

Are you sleeping on your savings? It could mean you’re missing out on an extra $230 per year.

Aussies are being urged to wake up from their savings slumber and chase down higher returns, as savings rates hit a 10-year high.

The average ongoing savings rate is currently 2.78 per cent, according to Mozo. By simply switching to the top rate of 5.00 per cent, Aussies with $10,000 in savings could earn an extra $230 in interest per year.

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You could also be missing out if you keep your savings in a standard bank account earning no interest, rather than a separate savings account. By switching to the average savings account, Mozo found you could earn $282 in extra interest.

Mozo director and money expert Kylie Moss said it was time for Aussies to shake themselves out of complacency and take advantage of higher interest rates.

“People are potentially throwing away hundreds of dollars in interest each year by sticking with low-interest-earning accounts, and that’s a foolish situation to be in, especially when household budgets are so stretched with the higher cost of living,” Moss said.

Best savings rates

The ING Savings Maximiser is the top bonus savings rate on Mozo’s database, earning 5.00 per cent. ANZ Plus Savings Account offers the leading base rate at 4.25 per cent.

Mozo has also analysed more than 500 deposit products from 92 providers as part of its Experts Choice Awards for Bank Accounts and Savings.

Great Southern Bank was named Mozo’s Everyday & Savings Bank of the Year. Other standout winners included:

  • Best High Interest Savings: ING Savings Maximiser, AMP Saver, BOQ Smart Saver

  • Best No String Savings: ANZ Save, Bankwest Easy Saver, Australian Unity Freedom Saver

  • Best Kick Start Savings: Macquarie Savings Account, Rabobank High Interest Savings

  • Young Adult Savings Account: BOQ Future Saver, Westpac Life

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