Are savings accounts good in times of economic uncertainty, or is a fixed rate safer?

By Cameron Thomson · · 2 min read
Fact Checked
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Man looking at savings account

Economic uncertainty partly caused by recent tariffs has seen big drops in the stock market this week. As you would expect, people are understandably anxious about their cash. 

But what about savings accounts? Are they still a good option in this kind of environment? Or is fixing your rate perhaps better?

Let’s have a look.

Why savings accounts remain a good option

If your number one concern is safety, then savings accounts are one of the best places to keep your cash. Yes, banks tend to be safe places to keep money. 

But, even in the unlikely event that they do collapse, the government will guarantee deposits of up to $250,000 under the financial claims scheme.

So safety isn’t such a concern. What about getting your cash working for you?

Some economists and financial institutions (like Deutsche Bank) have come out saying that the tariffs could result in a 50 basis point cut when the RBA meets on 19-20 May. This means that you’d see the interest rate on your savings account reduce, which isn’t great news.

This is why constantly comparing savings rates is so important.  

Start with comparing between leading rates but you can also compare savings account rates against the rate of inflation. This will help make sure that the cash you’ve got is either keeping up or growing faster than the rate of currency depreciation. 

For context, current CPI from the 12 months to the December 2024 quarter was 2.4%, so any savings rate above that is a good ballpark figure to compare against.

Currently, as of today, the average ongoing bonus interest savings rate on our database is 4.41% p.a. for account holders with $10,000

Term deposits as a savings accounts alternative

As we’ve indicated, savings rates might be in flux. So if you want to lock in a rate, and have the spare cash to do so, then a term deposit might be a good alternative option. 

However, just keep in mind that a term deposit means committing to keeping cash stored. You can usually apply for a 31 day notice withdrawal, but this means losing some or all your interest and potentially paying an early withdrawal fee. 

Right now the average term deposit rate ($25,000 deposit) on a one year term is 4.23% p.a. while for 2 years the average is 3.77% p.a. Of course, rates differ between terms, but this at least gives you an idea of what type of rates are generally on offer.

Where to get started with Savings and Term Deposits

You can compare savings accounts or compare term deposits by heading over to our respective hub pages or checking out the table below. Alternatively, if you’re looking to learn a bit more, you can read our savings account guides or term deposit guides.

Last updated 18 April 2025 Important disclosures
  • Promoted

    Boss Saver

    Maximum rate
    5.10 % p.a.
    (for $0 to $100,001)
    Minimum $500 deposited into linked transaction account, and 5 Visa Card transactions from that account
    Standard rate
    0.55 % p.a.
    (for $0 and over)
    Go to site
    • Bonus interest for the first four months
    • No minimum balance, ongoing fees or withdrawal penalties
    • Manage your money easily on the BCU Bank app
  • Promoted

    Savings Accelerator

    Maximum rate
    5.15 % p.a.
    (for $150,000 to $500,000)
    New customers who open an account by 30 June 2025 receive an introductory bonus 0.70% p.a. variable kick starter rate for the first 4 months on balances up to $500,000.
    Standard rate
    2.60 % p.a.
    (for $0 to $50,000)
    Go to site
    • No monthly deposit requirements or lock-in terms
    • No ongoing fees
    • Experts Choice Awards Highly Commended Everyday & Savings Bank 2025^
  • Promoted

    High Interest Savings Account

    Maximum rate
    5.45 % p.a.
    (for $0 to $250,001)
    Bonus rate for the first 4 months from account opening
    Standard rate
    4.00 % p.a.
    (for $0 to $250,001)
    Go to site
    • Easy set up, online and mobile banking app
    • No fees, no minimum balance, no minimum monthly deposit and no minimum term
    • Kick start your savings with the 4 month introductory variable rate
  • Promoted

    High Interest Save Account

    Maximum rate
    5.10 % p.a.
    (for $0 to $100,000)
    Deposit at least $500 to either Spend, Bills or Save account from an external source each month.
    Standard rate
    0.00 % p.a.
    (for $0 and over)
    Go to site
    • No monthly fees on any of your save accounts
    • Split your money with up to 10 Save accounts.
    • Set savings targets and track on the app

  • High Interest Savings Account

    Maximum rate
    5.45 % p.a.
    (for $0 to $250,001)
    Bonus rate for the first 4 months from account opening
    Standard rate
    4.00 % p.a.
    (for $0 to $250,001)
    Go to site
    • Easy set up, online and mobile banking app
    • No fees, no minimum balance, no minimum monthly deposit and no minimum term
    • Kick start your savings with the 4 month introductory variable rate

  • Savings Maximiser

    Maximum rate
    5.40 % p.a.
    (for $0 to $100,000)
    Deposit $1,000 into a personal ING account, make 5 eligible transactions with a linked Orange Everyday account and grow the balance each month.
    Standard rate
    0.05 % p.a.
    (for $0 and over)
    Go to site
    • Zero ING fees to pay
    • Move money easily via app
    • Experts Choice Awards Highly Commended Everyday & Savings Bank 2025^

  • Savings Accelerator

    Maximum rate
    5.15 % p.a.
    (for $150,000 to $500,000)
    New customers who open an account by 30 June 2025 receive an introductory bonus 0.70% p.a. variable kick starter rate for the first 4 months on balances up to $500,000.
    Standard rate
    2.60 % p.a.
    (for $0 to $50,000)
    Go to site
    • No monthly deposit requirements or lock-in terms
    • No ongoing fees
    • Experts Choice Awards Highly Commended Everyday & Savings Bank 2025^

  • Boss Saver

    Maximum rate
    5.10 % p.a.
    (for $0 to $100,001)
    Minimum $500 deposited into linked transaction account, and 5 Visa Card transactions from that account
    Standard rate
    0.55 % p.a.
    (for $0 and over)
    Go to site
    • Bonus interest for the first four months
    • No minimum balance, ongoing fees or withdrawal penalties
    • Manage your money easily on the BCU Bank app

  • Savvy Saver Account

    Maximum rate
    5.10 % p.a.
    (for $0 to $100,001)
    Minimum $500 deposited into linked transaction account, and 5 Visa Card transactions from that account
    Standard rate
    0.55 % p.a.
    (for $0 and over)
    Go to site
    • No minimum balance required
    • Move money in and out and still earn interest
    • Transfer or make payments using the mobile app

  • High Interest Save Account

    Maximum rate
    5.10 % p.a.
    (for $0 to $100,000)
    Deposit at least $500 to either Spend, Bills or Save account from an external source each month.
    Standard rate
    0.00 % p.a.
    (for $0 and over)
    Go to site
    • No monthly fees on any of your save accounts
    • Split your money with up to 10 Save accounts.
    • Set savings targets and track on the app

  • Reward Saver Kick Start Account

    Maximum rate
    5.00 % p.a.
    (for $0 to $1,000,000)
    Bonus rate of 5% for balances up to $1,000,000. Minimum deposit of $20 and no withdrawals in the month.
    Standard rate
    0.00 % p.a.
    (for $0 and over)
    Go to site
    • Earn bonus interest for saving $20 a month with no withdrawals
    • No monthly account keeping fees
    • Set up automatic transfers from your Everyday Account

  • Reward Saver Account

    Maximum rate
    5.00 % p.a.
    (for $0 to $1,000,000)
    Intro bonus rate of 5% for balances up to $1,000,000 for the first 4 months, reverting to 3%. Minimum deposit of $50 and no withdrawals.
    Standard rate
    0.00 % p.a.
    (for $0 and over)
    Go to site
    • Introductory bonus rate for balances up to $1,000,000 for the first 4 months
    • Minimum deposit of $50 and no withdrawals
    • No monthly account fees

  • Bonus Saver

    Maximum rate
    4.75 % p.a.
    (for $0 and over)
    Standard rate
    0.25 % p.a.
    (for $0 and over)
    Go to site
    • Bonus interest for the first four months
    • No minimum balance, ongoing fees or withdrawal penalties
    • Manage your money easily on the BCU Bank app

  • Hi Saver

    Maximum rate
    4.75 % p.a.
    (for $0 and over)
    Bonus rate for the first 4 months from account opening
    Standard rate
    0.25 % p.a.
    (for $0 and over)
    Go to site
    • Earn bonus interest for the first four months
    • No Minimum balance required
    • Transfer or make payments using the mobile app

  • MoneyMAX Account

    Maximum rate
    4.35 % p.a.
    (for $1 and over)
    Standard rate
    4.35 % p.a.
    (for $1 and over)
    Go to site
    • Interest is calculated daily and paid monthly
    • No fees or penalties for withdrawing money.
    • Online access only

  • SwiftSaver Account

    Maximum rate
    4.25 % p.a.
    (for $0 to $250,000)
    Minimum deposit of $10 and no withdrawals in the month
    Standard rate
    0.05 % p.a.
    (for $0 and over)
    Go to site
    • Earn bonus interest each month (T&Cs apply)
    • Open up to five accounts
    • No monthly fees or minimum balance
Showing 12 results from 250 savings accounts. Use the filters to see more

^See information about the Mozo Experts Choice Savings Account Awards

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Today's savings account rates