This is the number 1 mistake Aussies are making with their savings. Are you guilty?

By Kylie Moss · · 1 min read
Fact Checked
Advertiser disclosure
Australian dollars going down the drain

Mozo recently released the findings of our annual savings report and shockingly, despite the high cost of living, many Aussies continue to throw money down the drain. 

The number one mistake we found Aussies are making with their savings is that rather than have a dedicated savings account or term deposit, one in three people continue to keep their savings in their everyday transaction account earning little to no interest.   

According to the Mozo database, only 36 out of 110 bank accounts* (33%) pay interest on the money kept in transaction accounts, and only 9% offer more than 0.10% p.a.

The best ongoing interest rate is currently 5.40% p.a. with ING’s Savings Maximiser account, as long as you meet the monthly conditions. 

On a $5,000 savings balance, that means you could be missing out on as much as $277 interest annually by keeping your funds in a non-interest earning bank account.  

“It’s madness that people aren’t more motivated to make their money work as hard as it can for them,” said Rachel Wastell, Mozo’s consumer saving expert. 

“Yes, some banks do have complicated bonus criteria for savings accounts, but many banking apps provide you with notifications and alerts that help you to keep track of balance requirements and due dates which make it easier to stay on top of,” she said.

Time to compare and save? 

Here’s a look at some of the latest savings and term deposit offers that are available to help you increase your returns. 

  • High interest savings accounts

    Last updated 26 April 2025 Important disclosures

  • 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^

  • 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

  • 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

  • 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

  • Fixed term deposit

  • Term Deposit

    Best rate
    4.80 % p.a.
    for 6 months
    ($1,000 to $2,000,000)
    Next best option
    4.75 % p.a.
    for 3 months
    ($1,000 to $2,000,000)
    Go to site
    • 0.10% added loyalty bonus at renewal
    • Option to have interest paid to another bank
    • Winner of the Mozo Experts Choice Awards 2025^ for Term Deposits.

*Mozo database, accurate as at 4 April 2025. Bank accounts excluding kids and pensioner accounts.  

^See information about the Mozo Experts Choice Savings Account Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

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.

Today's savings account rates