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Written By
Sean Callery
Reviewed by
Shaun McGowan
Last updated15 January 2025
Compare bonus savings rates up to 6.00% p.a. or ongoing high interest savings account offers up to 5.10% p.a.
Written By
Sean Callery
Reviewed by
Shaun McGowan
Last updated15 January 2025
Compare bonus savings rates up to 6.00% p.a. or ongoing high interest savings account offers up to 5.10% p.a.
Up to
5.60%
p.a. for 4 months, then up to 4.35% p.a. variable
Rabobank High Interest Savings Account
Earn a bonus variable rate for the first 4 months on balances up to $250,000, with a high ongoing rate thereafter. No account keeping fees or min balance, with interest paid monthly. Intro rate for new customers only.
Up to
5.05%
p.a. variable with bonus interest, or 0.35% p.a. standard variable rate
Suncorp Bank Growth Saver Account
Earn bonus interest with no maximum balance or account keeping fees when you grow your savings by $200 or more each month (excluding interest) and make no more than one withdrawal.
Deposit amount | |||
To get the highest interest rate on your savings each month, you often need to meet specific conditions. For example, you may need to deposit a minimum amount, make no withdrawals, and make transactions on a linked everyday account.
Unless you’re happy to switch regularly to chase the best savings rate, you may be better off with an account offering a high ongoing interest rate. A lot of high interest savings accounts start off with a high rate but revert to a much lower rate after 3-6 months.
As well as the conditions for getting the top rate of interest, there can be other restrictions. For example, some accounts have an upper or lower age limit.
Something else to watch for is limits on the balance the top rate of interest will apply to. For example, you might get the best rate on your balance up to $50k but a much lower rate on amounts above that.
Is the account provider an ‘authorised deposit-taking institution’? Only these ADIs are covered by the Government’s Financial Claims Scheme which protects your deposits up to a total value of $250,000 per institution.
Some savings accounts offer handy tools, like savings trackers, the ability to set up multiple savings ‘buckets’ with different names and automatic reminders so you don’t miss out on the bonus interest.
While most savings accounts in Australia don't charge ongoing fees, some may charge 'ancillary' fees, like fees for requesting statements or making in-person withdrawals at a branch.
Megan Birot, Senior Finance Writer
"As someone saving for a home deposit, it’s all about the rate for me. But also the conditions to get that rate. For example, with ING I have to make 5 transactions on the linked transaction account and have to deposit at least $1,000 each month. Nice and simple. Basically, I just want the best rate, without having to jump through hoops to get it."
Megan Birot, Senior Finance Writer
How do high interest savings accounts work?
Base interest rate
This is the standard variable interest rate that applies by default to money saved in the account. It’s usually a relatively low rate. This rate sometimes depends on the balance of the account. For example, a higher rate may apply to the balance up until a point, and then a lower rate kicks in, or vice versa.
Bonus interest rate
With a high interest savings account, the bulk of the interest usually comes via the bonus rate that kicks in if you meet the eligibility criteria. This rate is also usually variable, meaning your bank could change it at any time.
Intro (honeymoon) interest rate
Some accounts offer extra interest (at a fixed rate) for the first few months only, as an incentive to get savers to sign up.
Tiered interest
A savings account with tiered interest pays a different rate on different portions of your balance. For example you might earn 1% p.a. on the first $10,000, then 1.5% p.a. on any amount above that.
Bonus savers
These accounts offer a higher rate of interest or ‘bonus’ interest if the account holder meets certain criteria each month. These accounts often have a fairly meagre base interest rate if the bonus interest isn’t applied.
Standard savings account
If you’re looking for a consistent rate of interest, you might prefer a standard savings account that doesn’t rely on you jumping through hoops to qualify. Some accounts just offer a base rate of interest that applies regardless of how you use the account.
Junior saver account
Junior saver accounts typically offer high interest rates but only to young people (e.g. under 18 years old). It’s usually a requirement that a parent or guardian opens the account on the child’s behalf and is listed as a signatory on the account to make transactions.
First home buyer accounts
Some savings accounts are aimed at people saving for a deposit for a first home. In reality this is essentially a marketing tactic to appeal to first home buyers. Apart from the name, the account itself will likely be no different to any other kind of savings account.
SMSF savings accounts
These accounts are designed for people who are saving for retirement through a self-managed super fund (SMSF) and are looking to earn interest on their money. Functionally, they are very similar to standard savings accounts.
High interest savings account
Offset account
High interest savings account
Term deposit
How to apply for a high interest savings account
A savings account is one of the most straightforward financial products to apply for. You can usually apply online in a few minutes. This might explain why the majority of Australians put their savings into these accounts.
The only slight complication is that a lot of providers require you to have or apply for a transaction account first.
To open a savings account, you’ll generally need to:
What are the criteria for earning bonus interest on a high interest savings account?
In many cases, to earn the highest interest rate on a savings account you may need to deposit a minimum amount each month, have a linked transaction account and make no withdrawals (or ensure the balance grows each month). There may also be a maximum balance you can earn the highest interest rate on.
What’s the maximum amount I can save in a high interest savings account?
This depends on the savings account, and in many cases there won’t be a maximum. But many high interest savings accounts only pay the top interest rate up to a limit, e.g. up to $250,000. This is the largest amount that can be guaranteed for an individual at any one bank under the Government’s Financial Claims Scheme.
Most banks will allow you to hold more than that amount in a savings account. But any money above that amount won’t be guaranteed by the government if the bank goes bust.
Are the best high interest savings accounts only available online?
The highest interest savings accounts aren’t all necessarily offered by online banks, although online providers do tend to offer more competitive rates overall. In reality, virtually all ‘traditional’ banks will also have an online application process and you may not need to go into a branch at any stage as a savings customer.
What savings account has the best interest rate in Australia?
At the time of writing, The Mutual Bank offers the highest maximum savings rate of 6.00% p.a. on the portion of balances between $50,000 and $100,000. This top rate of interest is only available as an introductory offer until 31 January 2025, after which it will revert to the standard interest rate of 4.50%. Lower interest rates apply to the portion of balances up to $50,000 and above $100,000.
The savings accounts with the highest base/ongoing interest rate is 5.25% p.a. from Police Bank on its U30 Super Charge Account. But this account is for 18-29 year olds only, who meet Police Bank's other membership criteria.
The top ongoing rate available to a broader audience is on Australian Unity's Freedom Saver account which offers 5.10% p.a. (on balances up to $250k) .
Is my money safe in a high interest savings account?
Generally, yes. Money in a high interest savings account is guaranteed by the Australian Government’s Financial Claim Scheme, up to a value of $250,000 per person per bank. If you have more than $250,000 in savings, you could spread your savings across multiple providers covered by the scheme to ensure you are protected.
Which banks in Australia offer savings accounts?
The following providers are authorised deposit-taking institutions whose savings accounts are covered by the government’s Financial Claims Scheme.
How is interest calculated on savings accounts?
Interest on savings accounts is calculated daily based on the current balance of your account using this formula:
Daily interest = Account balance X interest rate ÷ 365
For example: $10,000 X 0.05 (5%) ÷ 365 = $1.37
If the balance on that account remained the same during a 31-day month, the total interest earned that month would be: $1.37 X 31 = $42.47
How many savings accounts can I have?
There’s generally no limit on how many savings accounts you can have across multiple providers. However, to keep things manageable, it may be best to limit it to one or a couple of accounts. One strategy could be to have one account with a high bonus interest rate (even if it has conditions attached), but to also have some savings in an account that offers a relatively high base interest rate.
That way if you miss out on the bonus interest, you will still be earning some interest via the base rate.
If you have more than $250,000 in savings, you may choose to spread your savings across multiple providers, as your deposits are only guaranteed by the government up to $250,000 with any one provider.
Sean Callery is the Editor of Money.com.au. He has over 15 years of international experience. He is qualified with a Certificate IV in Finance and Mortgage Broking (FNS40821) and is compliant to provide general advice in Tier 1 General Insurance (RG 146) products.
Shaun McGowan is the founder of Money.com.au. He's determined to help people and businesses pay as little as possible for financial products, through education and building world class technology. Previously Shaun co-founded CarLoans.com.au and Lend.
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