High Interest Savings Accounts Compared
- Compare bonus savings rates up to 5.75% p.a.
- Or ongoing high interest savings account offers up to 5.50% p.a.
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Highest interest savings accounts (including bonus offers)
Rabobank High Interest Savings Account | |
|---|---|
| Maximum interest rate (p.a.) | 5.75% |
| Base interest rate (p.a.) | 4.40% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $250k |
| Visit provider | |
MOVE Bank Growth Saver | |
| Maximum interest rate (p.a.) | 5.70% |
| Base interest rate (p.a.) | 0.10% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $25k |
| Visit provider | |
ME Bank HomeME Savings Account | |
| Maximum interest rate (p.a.) | 5.55% |
| Base interest rate (p.a.) | 0.55% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $100k |
| Visit provider | |
Australian Unity Freedom Saver | |
| Maximum interest rate (p.a.) | 5.50% |
| Base interest rate (p.a.) | 5.50% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $50,000 |
| Visit provider | |
Great Southern Bank Youth eSaver Account | |
| Maximum interest rate (p.a.) | 5.50% |
| Base interest rate (p.a.) | 5.50% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $5k |
| Visit provider | |
Macquarie Savings Account | |
| Maximum interest rate (p.a.) | 5.50% |
| Base interest rate (p.a.) | 4.75% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $250k |
| Visit provider | |
ING Savings Maximiser | |
| Maximum interest rate (p.a.) | 5.50% |
| Base interest rate (p.a.) | 0.55% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $100k |
| Visit provider | |
Firefighters Mutual Bank Target Saver Account | |
| Maximum interest rate (p.a.) | 5.50% |
| Base interest rate (p.a.) | 0.01% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | No maximum, subject to approval |
| Visit provider | |
Health Professionals Bank Target Saver Account | |
| Maximum interest rate (p.a.) | 5.50% |
| Base interest rate (p.a.) | 0.01% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | No maximum, subject to approval |
| Visit provider | |
Teachers Mutual Bank Bank Target Saver Account | |
| Maximum interest rate (p.a.) | 5.50% |
| Base interest rate (p.a.) | 0.01% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | No maximum, subject to approval |
| Visit provider | |
UniBank Target Saver Account | |
| Maximum interest rate (p.a.) | 5.50% |
| Base interest rate (p.a.) | 0.01% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | No maximum, subject to approval |
| Visit provider | |
BOQ Future Saver Account | |
| Maximum interest rate (p.a.) | 5.40% |
| Base interest rate (p.a.) | 0.05% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $50k |
| Visit provider | |
Bank of Melbourne Maxi Saver | |
| Maximum interest rate (p.a.) | 5.35% |
| Base interest rate (p.a.) | 1.10% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | No maximum |
| Visit provider | |
St.George Maxi Saver | |
| Maximum interest rate (p.a.) | 5.35% |
| Base interest rate (p.a.) | 1.10% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | No maximum |
| Visit provider | |
Great Southern Bank Goal Saver Account | |
| Maximum interest rate (p.a.) | 5.35% |
| Base interest rate (p.a.) | 0.50% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $50k |
| Visit provider | |
Virgin Money Boost Saver | |
| Maximum interest rate (p.a.) | 5.35% |
| Base interest rate (p.a.) | 0.05% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $250k |
| Visit provider | |
Rabobank Notice Saver Account (90 days) | |
| Maximum interest rate (p.a.) | 5.25% |
| Base interest rate (p.a.) | 5.25% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $250k |
| Visit provider | |
Easy Street Easy Savings | |
| Maximum interest rate (p.a.) | 5.25% |
| Base interest rate (p.a.) | 2.00% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | No maximum, subject to approval |
| Visit provider | |
Bank of Melbourne Incentive Saver | |
| Maximum interest rate (p.a.) | 5.25% |
| Base interest rate (p.a.) | 1.85% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $250k |
| Visit provider | |
BankSA Incentive Saver | |
| Maximum interest rate (p.a.) | 5.25% |
| Base interest rate (p.a.) | 1.85% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $250k |
| Visit provider | |
St.George Incentive Saver | |
| Maximum interest rate (p.a.) | 5.25% |
| Base interest rate (p.a.) | 1.85% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $250k |
| Visit provider | |
Great Southern Bank Home Saver Account | |
| Maximum interest rate (p.a.) | 5.25% |
| Base interest rate (p.a.) | 0.50% |
| Conditions for bonus interest | Deposit $2k per month to linked Everyday Edge Account and make 5 eligible debit card purchases. |
| Maximum balance for top interest rate | $100k |
| Visit provider | |
Bendigo Bank Reward Saver | |
| Maximum interest rate (p.a.) | 5.25% |
| Base interest rate (p.a.) | 0.30% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $100k |
| Visit provider | |
Bank Australia Bonus Saver | |
| Maximum interest rate (p.a.) | 5.25% |
| Base interest rate (p.a.) | 0.10% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $250k |
| Visit provider | |
RACQ Bank Bonus Saver Account | |
| Maximum interest rate (p.a.) | 5.25% |
| Base interest rate (p.a.) | 0.01% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $100k |
| Visit provider | |
IMB Reward Saver Account | |
| Maximum interest rate (p.a.) | 5.25% |
| Base interest rate (p.a.) | 0.00% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $1m |
| Visit provider | |
Rabobank Notice Saver Account (60 days) | |
| Maximum interest rate (p.a.) | 5.20% |
| Base interest rate (p.a.) | 5.20% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $250k |
| Visit provider | |
Westpac Life | |
| Maximum interest rate (p.a.) | 5.20% |
| Base interest rate (p.a.) | 2.00% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $30k |
| Visit provider | |
AMP Saver Account | |
| Maximum interest rate (p.a.) | 5.20% |
| Base interest rate (p.a.) | 1.20% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $250k |
| Visit provider | |
BCU Bonus Saver | |
| Maximum interest rate (p.a.) | 5.20% |
| Base interest rate (p.a.) | 1.00% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | No maximum listed |
| Visit provider | |
Rabobank Notice Saver Account (31 days) | |
| Maximum interest rate (p.a.) | 5.15% |
| Base interest rate (p.a.) | 5.15% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $250k |
| Visit provider | |
HSBC Everyday Savings | |
| Maximum interest rate (p.a.) | 5.15% |
| Base interest rate (p.a.) | 3.30% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $1m |
| Visit provider | |
P&N Bank Hi Saver Account | |
| Maximum interest rate (p.a.) | 5.15% |
| Base interest rate (p.a.) | 1.00% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | No maximum listed |
| Visit provider | |
Australian Unity Easy Saver Plus | |
| Maximum interest rate (p.a.) | 5.10% |
| Base interest rate (p.a.) | 4.10% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | No maximum listed |
| Visit provider | |
Bankwest Easy Saver | |
| Maximum interest rate (p.a.) | 5.10% |
| Base interest rate (p.a.) | 4.00% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $250k |
| Visit provider | |
Rabobank PremiumSaver | |
| Maximum interest rate (p.a.) | 5.10% |
| Base interest rate (p.a.) | 3.00% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $250k |
| Visit provider | |
Commbank NetBank Saver | |
| Maximum interest rate (p.a.) | 5.10% |
| Base interest rate (p.a.) | 2.35% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | No maximum listed |
| Visit provider | |
Ubank High Interest Save Account | |
| Maximum interest rate (p.a.) | 5.10% |
| Base interest rate (p.a.) | 0.10% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $250k |
| Visit provider | |
Suncorp Growth Saver Account | |
| Maximum interest rate (p.a.) | 5.05% |
| Base interest rate (p.a.) | 0.35% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | No maximum |
| Visit provider | |
HSBC Bonus Savings | |
| Maximum interest rate (p.a.) | 5.00% |
| Base interest rate (p.a.) | 2.50% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $5m |
| Visit provider | |
NAB iSaver | |
| Maximum interest rate (p.a.) | 5.00% |
| Base interest rate (p.a.) | 2.00% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $20m |
| Visit provider | |
Credit Union SA Netsave Account | |
| Maximum interest rate (p.a.) | 5.00% |
| Base interest rate (p.a.) | 1.50% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | No maximum |
| Visit provider | |
Newcastle Permanent Online Savings Account | |
| Maximum interest rate (p.a.) | 5.00% |
| Base interest rate (p.a.) | 1.00% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | No maximum listed |
| Visit provider | |
NAB Reward Saver | |
| Maximum interest rate (p.a.) | 5.00% |
| Base interest rate (p.a.) | 0.35% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $50k |
| Visit provider | |
Defence Bank Max eSaver | |
| Maximum interest rate (p.a.) | 5.00% |
| Base interest rate (p.a.) | 0.10% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $1m |
| Visit provider | |
BOQ Smart Saver Account | |
| Maximum interest rate (p.a.) | 5.00% |
| Base interest rate (p.a.) | 0.05% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $250k |
| Visit provider | |
MyState Bank Bonus Saver Account | |
| Maximum interest rate (p.a.) | 5.00% |
| Base interest rate (p.a.) | 0.05% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | $250k |
| Visit provider | |
Easy Street Bonus Saver Account | |
| Maximum interest rate (p.a.) | 5.00% |
| Base interest rate (p.a.) | 0.01% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | No maximum listed |
| Visit provider | |
Hume Bank Reward Saver | |
| Maximum interest rate (p.a.) | 5.00% |
| Base interest rate (p.a.) | 0.01% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | No maximum listed |
| Visit provider | |
Horizon Bank | |
| Maximum interest rate (p.a.) | 5.00% |
| Base interest rate (p.a.) | 0.00% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate | No maximum listed |
| Visit provider | |
Regional Australia Bank | |
| Maximum interest rate (p.a.) | 5.00% |
| Base interest rate (p.a.) | 0.00% |
| Conditions for bonus interest |
|
| Maximum balance for top interest rate |
|
| Visit provider |
| Maximum interest rate (p.a.) | Base interest rate (p.a.) | Conditions for bonus interest | Maximum balance for top interest rate | Visit provider | |
|---|---|---|---|---|---|
Rabobank High Interest Savings Account | 5.75% | 4.40% |
| $250k | |
MOVE Bank Growth Saver | 5.70% | 0.10% |
| $25k | |
ME Bank HomeME Savings Account | 5.55% | 0.55% |
| $100k | |
Australian Unity Freedom Saver | 5.50% | 5.50% |
| $50,000 | |
Great Southern Bank Youth eSaver Account | 5.50% | 5.50% |
| $5k | |
Macquarie Savings Account | 5.50% | 4.75% |
| $250k | |
ING Savings Maximiser | 5.50% | 0.55% |
| $100k | |
Firefighters Mutual Bank Target Saver Account | 5.50% | 0.01% |
| No maximum, subject to approval | |
Health Professionals Bank Target Saver Account | 5.50% | 0.01% |
| No maximum, subject to approval | |
Teachers Mutual Bank Bank Target Saver Account | 5.50% | 0.01% |
| No maximum, subject to approval | |
UniBank Target Saver Account | 5.50% | 0.01% |
| No maximum, subject to approval | |
BOQ Future Saver Account | 5.40% | 0.05% |
| $50k | |
Bank of Melbourne Maxi Saver | 5.35% | 1.10% |
| No maximum | |
St.George Maxi Saver | 5.35% | 1.10% |
| No maximum | |
Great Southern Bank Goal Saver Account | 5.35% | 0.50% |
| $50k | |
Virgin Money Boost Saver | 5.35% | 0.05% |
| $250k | |
Rabobank Notice Saver Account (90 days) | 5.25% | 5.25% |
| $250k | |
Easy Street Easy Savings | 5.25% | 2.00% |
| No maximum, subject to approval | |
Bank of Melbourne Incentive Saver | 5.25% | 1.85% |
| $250k | |
BankSA Incentive Saver | 5.25% | 1.85% |
| $250k | |
St.George Incentive Saver | 5.25% | 1.85% |
| $250k | |
Great Southern Bank Home Saver Account | 5.25% | 0.50% | Deposit $2k per month to linked Everyday Edge Account and make 5 eligible debit card purchases. | $100k | |
Bendigo Bank Reward Saver | 5.25% | 0.30% |
| $100k | |
Bank Australia Bonus Saver | 5.25% | 0.10% |
| $250k | |
RACQ Bank Bonus Saver Account | 5.25% | 0.01% |
| $100k | |
IMB Reward Saver Account | 5.25% | 0.00% |
| $1m | |
Rabobank Notice Saver Account (60 days) | 5.20% | 5.20% |
| $250k | |
Westpac Life | 5.20% | 2.00% |
| $30k | |
AMP Saver Account | 5.20% | 1.20% |
| $250k | |
BCU Bonus Saver | 5.20% | 1.00% |
| No maximum listed | |
Rabobank Notice Saver Account (31 days) | 5.15% | 5.15% |
| $250k | |
HSBC Everyday Savings | 5.15% | 3.30% |
| $1m | |
P&N Bank Hi Saver Account | 5.15% | 1.00% |
| No maximum listed | |
Australian Unity Easy Saver Plus | 5.10% | 4.10% |
| No maximum listed | |
Bankwest Easy Saver | 5.10% | 4.00% |
| $250k | |
Rabobank PremiumSaver | 5.10% | 3.00% |
| $250k | |
Commbank NetBank Saver | 5.10% | 2.35% |
| No maximum listed | |
Ubank High Interest Save Account | 5.10% | 0.10% |
| $250k | |
Suncorp Growth Saver Account | 5.05% | 0.35% |
| No maximum | |
HSBC Bonus Savings | 5.00% | 2.50% |
| $5m | |
NAB iSaver | 5.00% | 2.00% |
| $20m | |
Credit Union SA Netsave Account | 5.00% | 1.50% |
| No maximum | |
Newcastle Permanent Online Savings Account | 5.00% | 1.00% |
| No maximum listed | |
NAB Reward Saver | 5.00% | 0.35% |
| $50k | |
Defence Bank Max eSaver | 5.00% | 0.10% |
| $1m | |
BOQ Smart Saver Account | 5.00% | 0.05% |
| $250k | |
MyState Bank Bonus Saver Account | 5.00% | 0.05% |
| $250k | |
Easy Street Bonus Saver Account | 5.00% | 0.01% |
| No maximum listed | |
Hume Bank Reward Saver | 5.00% | 0.01% |
| No maximum listed | |
Horizon Bank | 5.00% | 0.00% |
| No maximum listed | |
Regional Australia Bank | 5.00% | 0.00% |
|
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Highest ongoing savings rates (no conditions)
Australian Unity Freedom Saver | |
|---|---|
| Interest rate | 5.50% p.a. |
| Maximum balance for top interest rate | $50k |
| Visit provider | |
Unity Bank | |
| Interest rate | 4.90% p.a. |
| Maximum balance for top interest rate | No maximum listed |
| Visit provider | |
BOQ Simple Saver | |
| Interest rate | 4.85% p.a. |
| Maximum balance for top interest rate | $5m |
| Visit provider | |
ANZ Save Account (ANZ Plus) | |
| Interest rate | 4.90% p.a. |
| Maximum balance for top interest rate | $250k |
| Visit provider | |
Macquarie Bank Savings Account | |
| Interest rate | 4.75% p.a. |
| Maximum balance for top interest rate | $1m |
| Visit provider | |
Macquarie Bank Cash Management Account | |
| Interest rate | 4.75% p.a. |
| Maximum balance for top interest rate | $2m |
| Visit provider | |
Goldfields Money Cash management Account | |
| Interest rate | 4.55% p.a. |
| Maximum balance for top interest rate | No maximum listed |
| Visit provider | |
nabtrade High Interest Account | |
| Interest rate | 4.50% p.a. |
| Maximum balance for top interest rate | $1m |
| Visit provider | |
MOVE Bank Online Saver | |
| Interest rate | 4.40% p.a. |
| Maximum balance for top interest rate | $5m |
| Visit provider | |
Rabobank Australia High Interest Savings Account | |
| Interest rate | 4.40% p.a. |
| Maximum balance for top interest rate | $250k |
| Visit provider | |
Qudos Bank Qsaver | |
| Interest rate | 4.35% p.a. |
| Maximum balance for top interest rate | No maximum listed (higher rate of 4.45% p.a. applies to balance of $500k & over) |
| Visit provider | |
Bank of Sydney BoS Saver | |
| Interest rate | 4.25% p.a. |
| Maximum balance for top interest rate | $5m |
| Visit provider | |
Great Southern Bank eSaver Flexi | |
| Interest rate | 4.20% p.a. |
| Maximum balance for top interest rate | No maximum listed |
| Visit provider | |
Australian Unity Easy Saver Plus | |
| Interest rate | 4.10% p.a. |
| Maximum balance for top interest rate | No maximum listed |
| Visit provider | |
Bankwest Easy Saver | |
| Interest rate | 4.00% p.a. |
| Maximum balance for top interest rate | $250k |
| Visit provider |
| Interest rate | Maximum balance for top interest rate | Visit provider | |
|---|---|---|---|
Australian Unity Freedom Saver | 5.50% p.a. | $50k | |
Unity Bank | 4.90% p.a. | No maximum listed | |
BOQ Simple Saver | 4.85% p.a. | $5m | |
ANZ Save Account (ANZ Plus) | 4.90% p.a. | $250k | |
Macquarie Bank Savings Account | 4.75% p.a. | $1m | |
Macquarie Bank Cash Management Account | 4.75% p.a. | $2m | |
Goldfields Money Cash management Account | 4.55% p.a. | No maximum listed | |
nabtrade High Interest Account | 4.50% p.a. | $1m | |
MOVE Bank Online Saver | 4.40% p.a. | $5m | |
Rabobank Australia High Interest Savings Account | 4.40% p.a. | $250k | |
Qudos Bank Qsaver | 4.35% p.a. | No maximum listed (higher rate of 4.45% p.a. applies to balance of $500k & over) | |
Bank of Sydney BoS Saver | 4.25% p.a. | $5m | |
Great Southern Bank eSaver Flexi | 4.20% p.a. | No maximum listed | |
Australian Unity Easy Saver Plus | 4.10% p.a. | No maximum listed | |
Bankwest Easy Saver | 4.00% p.a. | $250k |
How to pick the best high interest savings accounts
1
Check the bonus interest conditions
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.
2
Intro offer vs ongoing rate
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.
3
Eligibility criteria
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.
4
Maximum balance
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.
5
Authorised deposit-taking institutions
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.
6
Savings tools
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.
7
Fees
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.
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, Money.com.au Senior Finance Journalist
How do high interest savings accounts work?
High interest savings accounts offer savers the ability to earn interest on money they deposit into the account. You can make an initial deposit when you open the account and then regular deposits to grow your savings.
Most high interest savings accounts have different interest rates that apply depending on how the account is used. To get the best savings rate, there’s usually more to it than just depositing money and waiting for compound interest to work its magic. Here are the main types of interest that may apply to a high-interest rate savings account.
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.
Conditional (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.
Types of high interest savings accounts
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 versus mortgage offset account
High interest savings account
- You earn interest on your savings.
- Interest is paid at a variable rate set by your bank.
- You often need to meet certain criteria to qualify for the top rate of interest.
- You may need to pay tax on interest earned.
Offset account
- Your savings reduce the balance of your home loan that interest is charged on.
- Unless it’s a 100% offset account, only a portion of your savings will reduce your interest costs.
- Because you are saving and not earning interest, you won’t need to pay tax.
High interest savings account versus term deposit
High interest savings account
- Variable interest rate.
- No set time frame.
- You can withdraw your money at any time.
- Fixed interest rate.
- Your money is locked away for a set period.
- Penalties apply if you withdraw your money before the end of the term.
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.
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:
- Be an Australian resident with an Australian postal address.
- Apply with the help of a parent or guardian if you are a child.
- Provide information from your identity documents to prove your identity.
- Provide a tax file number if you don’t want the bank to withhold tax on interest paid.
More questions you may have about high interest savings accounts
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 Rabobank offers the highest maximum savings rate of 5.75% p.a. on balances up to $250,000. This top rate of interest is only available as an introductory offer for the first four months, after which the standard rate for 4.40% p.a. applies.
The savings account with the highest base interest rate is Australian Unity's Freedom Saver account which offers 5.50% p.a. on balances up to $50k.
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.
- Alex Bank Pty Limited
- AMP Bank Ltd
- Arab Bank Australia Limited
- Australia and New Zealand Banking Group Limited
- Australian Military Bank Ltd
- RSL Money
- Australian Mutual Bank Limited (trading as - Endeavour Mutual Bank and Sydney Mutual Bank)
- Australian Settlements Limited (provides industry services)
- Australian Unity Bank Limited
- Auswide Bank Ltd
- Queensland Professional Credit Union Ltd
- Avenue Bank Limited
- B&E Ltd (trading as Bank of us)
- Bank Australia Limited
- Bank of China (Australia) Limited
- Bank of Queensland Limited
- BOQ Specialist (BOQS)
- ME Bank
- Bank of Sydney Ltd
- Bendigo and Adelaide Bank Limited
- Adelaide Bank
- Alliance Bank
- AWA Alliance Bank
- BDCU Alliance Bank
- Bendigo Bank
- Circle Alliance Bank
- Community Sector Banking
- Delphi Bank
- Nova Alliance Bank
- Rural Bank
- Service One Alliance Bank
- Up Bank
- Beyond Bank Australia
- Nexus Mutual
- BNK Banking Corporation Limited (previously
- Goldfields Money Limited)
- Goldfields Money
- Cairns Penny Savings & Loans Limited (trading as Cairns Bank)
- Central Murray Credit Union Limited
- Central West Credit Union Limited
- Challenger Bank Limited (previously - MyLifeMyFinance Limited)
- Coastline Credit Union Limited
- Commonwealth Bank of Australia Bankwest
- Community First Credit Union Limited
- Community First Bank
- Easy Street Financial Services
- Credit Union Australia Ltd (trading as Great Southern Bank)
- Credit Union SA Ltd
- Cuscal Limited (provides industry services)
- Defence Bank Limited
- Dnister Ukrainian Credit Co-operative Limited
- Family First Credit Union Limited
- Family First Bank
- Fire Service Credit Union Limited
- First Choice Credit Union Ltd
- First Option Bank Ltd
- Ford Co-operative Credit Society Limited (trading as Geelong Bank)
- G&C Mutual Bank Limited
- Gateway Bank Ltd
- Goulburn Murray Credit Union Co-operative Limited
- Heritage and People’s Choice Limited
- Heritage Bank
- People’s Choice Credit Union
- Horizon Credit Union Ltd (trading as Horizon Bank)
- HSBC Bank Australia Limited
- Hume Bank Limited
- IMB Ltd (trading as IMB Bank)
- The Shire
- Illawarra Credit Union Limited
- in1bank Ltd
- Indue Ltd
- ING Bank (Australia) Limited (trading as ING)
- Judo Bank Pty Ltd
- Laboratories Credit Union Limited
- Lithuanian Co-operative Credit Society "Talka" - Limited
- Lutheran Laypeople's League of Australia
- MacArthur Credit Union Ltd (trading as The MAC)
- Macquarie Bank Limited
- Macquarie Credit Union Limited
- Maitland Mutual Limited (trading as The Mutual Bank)
- Members Banking Group Limited (trading as RACQ Bank)
- MyState Bank Limited
- National Australia Bank Limited
- Ubank
- Newcastle Greater Mutual Group Ltd
- Newcastle Permanent
- Greater Bank
- Northern Inland Credit Union Limited
- Orange Credit Union Limited
- Police Bank Ltd (trading as Border Bank)
- Police Credit Union Limited
- Police Financial Services Limited (trading as BankVic)
- Police & Nurses Limited (trading as P&N Bank, and BCU Bank)
- Pulse Credit Union Limited
- QPCU Limited (trading as QBANK)
- Qudos Mutual Ltd (trading as Qudos Bank)
- Queensland Country Bank Limited
- Rabobank Australia Limited
- Railways Credit Union Limited (trading as MOVE)
- Regional Australia Bank Ltd
- South West Slopes Credit Union Ltd
- Southern Cross Credit Union Ltd
- Summerland Financial Services Limited (trading as - Summerland Credit Union)
- Suncorp-Metway Limited
- Teachers Mutual Bank Limited (trading as - Firefighters Mutual Bank, Health Professionals Bank, Hiver Bank, Teachers Mutual Bank and UniBank)
- The Broken Hill Community Credit Union Ltd
- The Capricornian Ltd
- Traditional Credit Union Limited
- Transport Mutual Credit Union Limited
- Tyro Payments Limited
- Unity Bank Limited (trading as Reliance Bank, Bankstown City Unity Bank and Unity Bank)
- Victoria Teachers Limited (trading as Bank First)
- Warwick Credit Union Ltd
- Dalby Credit Union
- Gympie Credit Union
- WAW Credit Union Co-Operative Limited
- BankWAW
- Westpac Banking Corporation
- Bank of Melbourne
- BankSA
- St George Bank
- Woolworths Team Bank Limited
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.
Written by
Editor
Sean Callery
Reviewed by
Loans Expert
Shaun McGowan
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