Compare the Best Savings Accounts for High Interest

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What is a high-interest savings account?


A high-interest savings account (HISA) is a type of savings account offered by banks with competitive introductory interest rates. 

A savings account is similar to a standard bank account, but is designed for saving instead of spending - these savings accounts will often also have bonus interest applied when certain savings conditions are met, and use compound interest calculated daily and paid monthly.


Best High Interest Savings Accounts

Account
Standard rate (variable)
Maximum rate
Maximum rate limit
Website link
Westpac Life (18-29 years old)

Standard rate:

0.40% p.a.

Maximum rate:

3.00% p.a.

Maximum rate balance limit:

$30,000

Website link:

Website
More info

Provider:

Westpac

Account Name:

Life (18-29 years old)

Rate difference:

2.60% p.a.

Maximum rate conditions:

Make 5 transactions/month on linked Westpac Choice account and min 1 deposit and higher balance than at the beginning of the month in Life savings account.

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$0.01 per month

Restrictions:

Must be linked to Westpac Choice transaction account. If 5 transactions are made each month, but savings account balance hasn't increased, a 2.40% interest rate still applies.

State availability:

All States

Bonus rate availability:

Ongoing

Bank of Queensland Fast Track Start Account (14-24 years old)

Standard rate:

0.20% p.a.

Maximum rate:

2.50% p.a. up to $10,000 and 1.50% up to $250,000

Maximum rate balance limit:

$10,000

Maximum rate balance limit:

Website
More info

Provider:

Bank of Queensland

Account Name:

Fast Track Start Account (14-24 years old)

Rate difference:

2.30% p.a.

Maximum rate conditions:

Ongoing bonus rate applied if in the previous month $200 or more is credited to the linked Day2Day Plus account and 5 eligible transactions are made by the linked account.

Fees:

$0

Minimum balance:

$1

Minimum deposit:

$0.01 per month

Restrictions:

Bonus interest rate criteria is effective from 1 February 2020.

State availability:

All States

Bonus rate availability:

Ongoing

Rabobank High Interest Savings Account

Standard rate:

0.55% p.a.

Maximum rate:

2.00% p.a.

Maximum rate balance limit:

$250,001

Maximum rate balance limit:

Website
More info

Provider:

Rabobank

Account Name:

High Interest Savings Account

Rate difference:

1.45% p.a.

Maximum rate conditions:

Bonus rate for the first 4 months from account opening, reverting to standard variable rate. Rate shown is for Personal customers and is subject to change. Different rates apply to Business/SMSF customers.

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$0

Restrictions:

Must link to a transaction account

State availability:

All States

Bonus rate availability:

4 months

Heritage Bank Online Saver

Standard rate:

0.80% p.a.

Maximum rate:

1.90% p.a.

Maximum rate balance limit:

$100,000

Maximum rate balance limit:

Website
More info

Provider:

Heritage Bank

Account Name:

Online Saver

Rate difference:

1.10% p.a.

Maximum rate conditions:

Introductory Bonus Rate for new customers with a linked eligible account for the first 4 months.

Fees:

$0

Minimum balance:

$1

Minimum deposit:

$0

Restrictions:

Must link to an eligible account

State availability:

NSW, VIC, QLD, ACT only

Bonus rate availability:

4 months

P&N Bank Hi Saver

Standard rate:

0.30% p.a.

Maximum rate:

1.70% p.a.

Maximum rate balance limit:

None

Maximum rate balance limit:

Website
More info

Provider:

P&N Bank

Account Name:

Hi Saver

Rate difference:

1.40% p.a.

Maximum rate conditions:

Bonus rate for the first 4 months from account opening. Minimum $5,000 balance.

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$0

Restrictions:

None. Only available in Western Australia

State availability:

WA Only

Bonus rate availability:

4 months

Volt Bank Savings Account

Standard rate:

1.65% p.a.

Maximum rate:

1.65% p.a.

Maximum rate balance limit:

$245,000

Maximum rate balance limit:

Website
More info

Provider:

Volt Bank

Account Name:

Savings Account

Rate difference:

0%

Maximum rate conditions:

None

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$0

Restrictions:

Bank and saving account only accessible through iOS or Android app. Beta Access only.

State availability:

All States

Bonus rate availability:

Ongoing

MyState Bank Bonus Saver Account

Standard rate:

0.15% p.a.

Maximum rate:

1.65% p.a.

Maximum rate balance limit:

$250,000

Maximum rate balance limit:

Website
More info

Provider:

MyState Bank

Account Name:

Bonus Saver Account

Rate difference:

1.50% p.a.

Maximum rate conditions:

Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Everyday or Glide transaction accounts.

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$20 per month

Restrictions:

Must link to a transaction account

State availability:

All States

Bonus rate availability:

Ongoing

ING Savings Maximiser

Standard rate:

0.10% p.a.

Maximum rate:

1.65% pa

Maximum rate balance limit:

$100,000

Maximum rate balance limit:

Website
More info

Provider:

ING

Account Name:

Savings Maximiser

Rate difference:

1.55% p.a.

Maximum rate conditions:

For customers who have an Orange Everyday and deposit at least $1,000 from an external bank account and make at least 5 card purchases using your ING debit card each month

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$1,000 per month

Restrictions:

Must link to a transaction account.

State availability:

All States

Bonus rate availability:

Ongoing

UBank Usave with Uspend Transaction Account

Standard rate:

0.54% p.a.

Maximum rate:

1.60% pa

Maximum rate balance limit:

$250,000

Maximum rate balance limit:

Website
More info

Provider:

UBank

Account Name:

Usave with Uspend Transaction Account

Rate difference:

1.06% p.a.

Maximum rate conditions:

Bonus interest only applies on funds held in linked USaver account if $200 deposited into either account in the previous month from an external source and the combined balance is less than $250,000.

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$200 per month to either account

Restrictions:

None

State availability:

All States

Bonus rate availability:

Ongoing

Move Bank Bonus Saver

Standard rate:

0.40% p.a.

Maximum rate:

1.60% pa

Maximum rate balance limit:

$250,000

Maximum rate balance limit:

Website
More info

Provider:

Move Bank

Account Name:

Bonus Saver

Rate difference:

1.20% p.a.

Maximum rate conditions:

Minimum deposit of $200 and no withdrawals in the month

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$200

Restrictions:

None

State availability:

All States

Bonus rate availability:

Ongoing

Up Saver Account

Standard rate:

0.10% p.a.

Maximum rate:

1.60% pa

Maximum rate balance limit:

$50,000

Maximum rate balance limit:

Website
More info

Provider:

Up

Account Name:

Saver Account

Rate difference:

1.50% p.a.

Maximum rate conditions:

Make 5 or more successful card purchases per calendar month using your Up debit card and digital wallets (ATM transactions excluded).

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$0

Restrictions:

Bank and saving account only accessible through iOS or Android app.

State availability:

All States

Bonus rate availability:

Ongoing

86 400 Save Account

Standard rate:

0.15% p.a.

Maximum rate:

1.60% pa

Maximum rate balance limit:

$100,000

Maximum rate balance limit:

Website
More info

Provider:

86 400

Account Name:

Save Acount

Rate difference:

1.45% p.a.

Maximum rate conditions:

Deposit at least $1,000 to either Pay or Save account from an external source each month.

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$1

Restrictions:

Bank and saving account only accessible through iOS or Android app.

State availability:

All States

Bonus rate availability:

Ongoing

Citi Online Saver

Standard rate:

0.35% p.a.

Maximum rate:

1.55% p.a.

Maximum rate balance limit:

$500,000

Maximum rate balance limit:

Website
More info

Provider:

Citi

Account Name:

Online Saver

Rate difference:

1.20% p.a.

Maximum rate conditions:

Bonus rate for the first 4 months from account opening

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$0

Restrictions:

Must link to a transaction account.

State availability:

All States

Bonus rate availability:

4 months

Macquarie Savings Account

Standard rate:

1.35% p.a. up to $999,999 and 1.05% p.a. over $1,000,000

Maximum rate:

1.50% p.a.

Maximum rate balance limit:

$250,000

Maximum rate balance limit:

Website
More info

Provider:

Macquarie

Account Name:

Savings Account

Rate difference:

0.15% p.a.

Maximum rate conditions:

Bonus variable rate is available for the first four months up to $250,000

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$0

Restrictions:

Must have a Macquarie Transaction Account to link with.

State availability:

All States

Bonus rate availability:

4 months

Australian Unity Active Saver

Standard rate:

0.25% p.a.

Maximum rate:

1.50% p.a.

Maximum rate balance limit:

$500,000

Maximum rate balance limit:

Website
More info

Provider:

Australian Unity

Account Name:

Active Saver

Rate difference:

1.25% p.a.

Maximum rate conditions:

Minimum deposit of $250 and no withdrawals in the month

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$250

Restrictions:

Must link with Transaction Account from this provider.

State availability:

All States

Bonus rate availability:

Ongoing

Bank of Queensland Fast Track Saver Account

Standard rate:

0.20% p.a.

Maximum rate:

1.50% p.a.

Maximum rate balance limit:

$250,000

Maximum rate balance limit:

Website
More info

Provider:

Bank of Queensland

Account Name:

Fast Track Saver Account

Rate difference:

1.30% p.a.

Maximum rate conditions:

Ongoing bonus rate applied if in the previous month $1,000 or more is credited to the linked Day2Day Plus account and 5 eligible transactions are made by the linked account.

Fees:

$0

Minimum balance:

$1

Minimum deposit:

$0

Restrictions:

Bonus interest rate criteria is effective from 1 February 2020.

State availability:

All States

Bonus rate availability:

Ongoing

HSBC Serious Saver with Everyday Global Account

Standard rate:

0.15% p.a.

Maximum rate:

1.50% p.a.

Maximum rate balance limit:

$1,000,000

Maximum rate balance limit:

Website
More info

Provider:

HSBC

Account Name:

Serious Saver with Everyday Global Account

Rate difference:

1.35% p.a.

Maximum rate conditions:

1.50% p.a. 4 Month Introductory Variable Rate - Introductory offer will be applied to the first Serious Saver account opened with HSBC or if the previous Serious Saver account was closed more than 12 months ago

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$0

Restrictions:

0.70% ongoing variable bonus rate only applies if no withdrawal made within the month. Must deposit $2,000 into Everyday Global Account from an external source to receive 0.40% additional bonus rate.

State availability:

All States

Bonus rate availability:

4 months

CUA eSaver Reward

Standard rate:

0.05% p.a.

Maximum rate:

1.45% p.a.

Maximum rate balance limit:

$100,000

Maximum rate balance limit:

Website
More info

Provider:

CUA

Account Name:

eSaver Reward

Rate difference:

1.40% p.a.

Maximum rate conditions:

Deposit $1,000 into a CUA transaction account from external source in the month.

Fees:

$0

Minimum balance:

$1

Minimum deposit:

$0

Restrictions:

Must also hold a CUA transaction account to qualify for bonus interest rate.

State availability:

All States

Bonus rate availability:

Ongoing

Heritage Bank Target Bonus

Standard rate:

0.01% p.a.

Maximum rate:

1.36% p.a.

Maximum rate balance limit:

None

Maximum rate balance limit:

Website
More info

Provider:

Heritage Bank

Account Name:

Target Bonus

Rate difference:

1.35% p.a.

Maximum rate conditions:

Bonus interest if at least one deposit and no withdrawals in the month

Fees:

$0

Minimum balance:

$1

Minimum deposit:

$0.01

Restrictions:

None

State availability:

NSW, VIC, QLD, ACT only

Bonus rate availability:

Ongoing

Suncorp Growth Saver Account

Standard rate:

0.10% p.a.

Maximum rate:

1.35% p.a.

Maximum rate balance limit:

None

Maximum rate balance limit:

Website
More info

Provider:

Suncorp

Account Name:

Growth Saver Account

Rate difference:

1.25% p.a.

Maximum rate conditions:

Grow your net balance by at least $200 (excluding interest) and make no more than one withdrawal in the month.

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$200 per month

Restrictions:

None

State availability:

All States

Bonus rate availability:

Ongoing

Australian Unity Easy Saver

Standard rate:

0.50% p.a.

Standard rate:

1.30% p.a.

Standard rate:

$250,000

Maximum rate balance limit:

Website
More info

Provider:

Australian Unity

Account Name:

Easy Saver

Rate difference:

0.80% p.a.

Maximum rate conditions:

Bonus rate for the first 4 months from account opening

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$0

Restrictions:

Must link with Transaction Account from this provider.

State availability:

All States

Bonus rate availability:

4 months

Bank of Queensland WebSavings Account

Standard rate:

0.30% p.a.

Standard rate:

1.30% p.a.

Standard rate:

None

Maximum rate balance limit:

Website
More info

Provider:

Bank of Queensland

Account Name:

WebSavings Account

Rate difference:

1.00% p.a.

Maximum rate conditions:

Bonus rate for the first 4 months from account opening on balances over $2,000 only, available to new customers only.

Fees:

$0

Minimum balance:

$1

Minimum deposit:

$0

Restrictions:

None

State availability:

All States

Bonus rate availability:

4 months

Qudos Bank Bonus Saver

Standard rate:

0.05% p.a.

Standard rate:

1.30% p.a.

Standard rate:

None

Maximum rate balance limit:

Website
More info

Provider:

Qudos Bank

Account Name:

Bonus Saver

Rate difference:

1.25% p.a.

Maximum rate conditions:

No withdrawals in the month

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$0

Restrictions:

None

State availability:

All States

Bonus rate availability:

Ongoing

Bank of Sydney BOS Saver

Standard rate:

1.25% p.a.

Standard rate:

1.25% p.a.

Standard rate:

$5,000,,000

Maximum rate balance limit:

Website
More info

Provider:

Bank of Sydney

Account Name:

BOS Saver

Rate difference:

0%

Maximum rate conditions:

Minimum $5,000 balance

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$0

Restrictions:

None. Only available in New South Wales

State availability:

NSW, VIC, SA only

Bonus rate availability:

Ongoing

Australian Military Bank Online Saver

Standard rate:

0.25% p.a.

Standard rate:

1.25% p.a.

Standard rate:

$500,000

Maximum rate balance limit:

Website
More info

Provider:

Australian Military Bank

Account Name:

Online Saver

Rate difference:

1.00% p.a.

Maximum rate conditions:

Bonus rate for balances over $5,000 when no withdrawals are made

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$0

Restrictions:

Must link to an Australian Military Bank transaction account or account from another Australian financial institution.

State availability:

All States

Bonus rate availability:

Ongoing

Bankwest Hero Saver

Standard rate:

0.01% p.a.

Standard rate:

1.25% p.a.

Standard rate:

$250,000

Maximum rate balance limit:

Website
More info

Provider:

Bankwest

Account Name:

Hero Saver

Rate difference:

1.24% p.a.

Maximum rate conditions:

Minimum deposit of $200 and no withdrawals in the month.

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$0

Restrictions:

None

State availability:

All States

Bonus rate availability:

Ongoing

Rabobank PremiumSaver

Standard rate:

0.10% p.a.

Standard rate:

1.20% p.a.

Standard rate:

$250,001

Maximum rate balance limit:

Website
More info

Provider:

Rabobank

Account Name:

PremiumSaver

Rate difference:

1.10% p.a.

Maximum rate conditions:

Maximum rates apply when your closing balance on the last day of the month is at least $200 more than it was at the beginning of the first day of the month (excluding interest earned).

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$200 per month

Restrictions:

Must link to a transaction account

State availability:

All States

Bonus rate availability:

Ongoing

BankVic Bonus Saver

Standard rate:

0.05% p.a.

Standard rate:

1.20% p.a.

Standard rate:

$5,000,000

Maximum rate balance limit:

Website
More info

Provider:

BankVic

Account Name:

Bonus Saver

Rate difference:

1.15% p.a.

Maximum rate conditions:

Minimum deposit of $100 and no withdrawals in the month

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$100 per month

Restrictions:

None

State availability:

Victoria - Not in NSW

Bonus rate availability:

Ongoing

Defence Bank iSaver

Standard rate:

0.05% p.a.

Standard rate:

1.20% p.a.

Standard rate:

$1,000,000

Maximum rate balance limit:

Website
More info

Provider:

Defence Bank

Account Name:

iSaver

Rate difference:

1.15% p.a.

Maximum rate conditions:

Bonus rate for the first 6 months from account opening

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$0

Restrictions:

Fund transfer to an external account is $1.

State availability:

All States

Bonus rate availability:

6 months

Queensland Country Bank Bonus Saver

Standard rate:

0.01% p.a.

Standard rate:

1.20% p.a.

Standard rate:

None

Maximum rate balance limit:

Website
More info

Provider:

Queensland Country Bank

Account Name:

Bonus Saver

Rate difference:

1.19% p.a.

Maximum rate conditions:

Minimum deposit of $20 and no withdrawals in the month

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$20 per month

Restrictions:

None

State availability:

All States

Bonus rate availability:

Ongoing

Police Credit Union Focus Saver

Standard rate:

0% p.a.

Standard rate:

1.20% p.a.

Standard rate:

$1,000,000

Maximum rate balance limit:

Website
More info

Provider:

Police Credit Union

Account Name:

Focus Saver

Rate difference:

1.20% p.a.

Maximum rate conditions:

No withdrawals in the month. Minimum deposit $200 per month. Minimum balance of $200

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$200 per month

State availability:

All States

Bonus rate availability:

Ongoing

CBA NetBank Saver

Standard rate:

0.05% p.a.

Standard rate:

0.95% p.a.

Standard rate:

None

Maximum rate balance limit:

Website
More info

Provider:

CBA

Account Name:

NetBank Saver

Rate difference:

0.90% p.a.

Maximum rate conditions:

Bonus rate for the first 5 months from account opening

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$0

Restrictions:

Must link to a transaction account with this provider

State availability:

All States

Bonus rate availability:

5 months

ANZ Progress Saver

Standard rate:

0.01% p.a.

Standard rate:

0.85% p.a.

Standard rate:

None

Maximum rate balance limit:

Website
More info

Provider:

ANZ

Account Name:

Progress Saver

Rate difference:

0.84% p.a.

Maximum rate conditions:

Bonus interest when you make a single deposit of $10 or more in a month and no withdrawals

Fees:

$0

Minimum balance:

$10

Minimum deposit:

$10

Restrictions:

None

State availability:

All States

Bonus rate availability:

Ongoing

NAB iSaver

Standard rate:

0.05% p.a.

Standard rate:

0.95% p.a.

Standard rate:

$20,000,000

Maximum rate balance limit:

Website
More info

Provider:

NAB

Account Name:

iSaver

Rate difference:

0.90% p.a.

Maximum rate conditions:

Bonus rate for the first 4 months from account opening. Introductory rate only applied to a customers first NAB iSaver account.

Fees:

$0

Minimum balance:

$0

Minimum deposit:

$0

Restrictions:

Must link to an eligible NAB everyday account.

State availability:

All States

Bonus rate availability:

4 months

NAB Reward Saver

Standard rate:

0.05% p.a.

Standard rate:

0.90% p.a.

Standard rate:

None

Maximum rate balance limit:

Website
More info

Provider:

NAB

Account Name:

Reward Saver

Rate difference:

0.85% p.a.

Maximum rate conditions:

To earn the bonus interest, you must make no withdrawals and at least one deposit in the month (NAB need to receive the deposit on or before the second last banking day of the month). If you earn bonus interest, NAB calculate it using your daily closing balance throughout the month.

Fees:

$0

Minimum balance:

$0

Minimum deposit:

0.01

Restrictions:

None

State availability:

All States

Bonus rate availability:

Ongoing


How does a high-interest online savings account work?


High-interest savings accounts are used to grow a deposit amount - they are guaranteed by the government, accrue interest at a higher rate than an everyday transaction account, while remaining completely liquid and available should you require the money, without penalty.


Interest applied to a savings account is compound interest calculated daily and paid monthly - to see how much you could grow a deposit using a savings account, you can use our Compound Interest Calculator.


You generally link a savings account to your bank account. All savings accounts come with a free, 24/7 online banking platform to access your funds, though in some cases, you can only link your savings account to another account within the same bank.


MONEY TIP

There are sometimes differences in accounts where you may need to deposit a minimum monthly amount and make no withdrawals to earn any interest.


How to apply for a high-interest savings account


Once you’ve compared high-interest savings accounts and settled on the one most suitable for you, you can apply online with your chosen savings account provider. You’ll want to ensure you read all terms and conditions before applying, and be certain to understand any fees associated with the account you are opening.


To begin the application process, you will typically need to provide some basic details, such as:

  • Your personal details and contact details
  • Your Tax File Number (TFN) and related information
  • Details of the account you want to link to your new high interest savings account
MONEY TIP

Savings accounts will generally not have any associated fees - make sure won’t be paying a monthly fee unnecessarily.


Most Popular High-interest Savings Accounts


Ready to compare the most popular savings accounts in Australia? Below are the best 30+ High-Interest Savings Accounts we could find - if you know of a better deal elsewhere, please let us know so we can update our list.


How to compare high-interest savings accounts


A high-interest savings account is a popular way to save money, though they aren’t always as simple as you might believe. To ensure you choose the best savings account for your money - i.e. which provides the best possible rate and chance to grow your savings - you should understand the pros and cons before depositing your money by comparing the following:

  • Best Introductory Rates and Standard Rates
  • Bonus Rate Conditions
  • Existing or New Account Providers
  • Deposit Conditions
  • Most Secure Savings Accounts

Best Introductory Rates and Standard Rates


High-interest savings accounts will have an introductory or new customer rate; a higher interest rate offered for the first three to five months. These rates are used as an incentive to open the account and entice customers to join up with the provider. Introductory rates will be a key factor for comparing savings accounts if you are:

  • Starting a savings plan
  • Have a short-term savings goal
  • Opening your first savings account
MONEY TIP

Remember that after the introductory period is over, compare your options again to ensure you're still getting a high rate.


There are generally not any conditions required to have these introductory rates applied - unlike bonus rates, which we’ll cover below.

Bonus Rate Conditions


Banks will also offer bonus interest if certain conditions are met. Many high-interest accounts now have tiered interest rates and bonus rates, and often require you to deposit a certain amount in your account before you are eligible to utilise them.


Be sure to check you are able to achieve these bonus rates through deposits before signing up. There’s little benefit in choosing a provider who offers a high rate which you won’t be able to access due to your own circumstances, though comfortably meeting them can provide an opportunity to truly maximise your savings growth.


MONEY TIP

Check if there are any conditions required to earn bonus interest. Bonus interest offers may only apply to new customers opening their first account or when certain deposit and withdrawal conditions are met.

Example Comparison of High Interest Savings Account Rates

Savings Accounts Introductory Rate Standard Rate Bonus Rate
Offer 1 2.10% 1.04% 1.06%
Offer 2 2.50% 1.05% 1.45%
Offer 3 2.00% 0.30% 1.70%

IMPORTANT: This is an example of rates and may not accurately represent current available offers

Existing or New Account Providers


Some high-interest savings accounts need to be linked to a transaction account. If you sign up with your existing banking provider, your savings accounts will be attached to your transaction account and can be managed online.


Separating your savings account means that it is harder to get the money back - you can let it grow slowly but steadily see progress.


MONEY TIP

Banks will indicate whether the savings account needs to be linked to a transaction account with your existing bank or can be attached to another bank - check to see if you can link it to your high-interest savings account before applying.

Deposit Conditions


There may be certain limitations applied to high-interest savings accounts which are useful to look out for when comparing offers and finding the best savings account for your savings plan:

  • Minimum Balance - This is generally either a minimum opening balance, or a minimum ongoing balance. You may be penalised if you fail to meet these conditions, and should be considered separate from the conditions required to receive bonus interest rates.
  • Maximum Rate Limits - Most HISA offers will only apply to the introductory interest rate to a certain amount of money. For most HISA providers, the maximum introductory amount is $250,000.
MONEY TIP

Look for an account that has ongoing high-interest, a few months of introductory rates will do very little for your savings.

Most Secure Savings Accounts


When choosing a high-interest account, safety should be a key concern. Safety against getting hacked, safety against all of your money going under with the provider you choose. Look to go with a bank or credit union that offers a Government guarantee for deposits up to $1 million dollars.


MONEY TIP

Regularly compare your savings account options to ensure you're always getting the highest rate.


Savings Account Transfer Delays


When considering a new account (savings account, term deposit or other investment), it is important to consider how many days it will take to set up the account and to transfer your money.


If your money has to sit in a non-interest bearing transaction account for five days while you wait for paperwork to clear, then this can have a dramatic effect on the effective interest rate you are getting. Here’s an example:

  • A 90-day term deposit has an interest rate of 4% p.a.
  • However, there is a five-day delay on transferring your deposit
  • The 5-day delay reduces the effective interest rate to 3.78%

As you can see, you may find a high-interest rate for your money, but unless you have the cash in that account for every day of the term deposit from day one, you will be getting a lower return than originally thought.

MONEY TIP

A lower effective rate on transfer may change your selection of account - i.e. you may prefer an account with a slightly lower nominal interest rate, but with a faster set-up process.


Opening multiple savings accounts


Whether you have one savings account or several is more of a personal choice, and it depends more on what you are saving for and how organised you are. You’ll need to ask yourself a number of questions, including:


  • What are your goals?
  • How will you track your savings?
  • Will it organise your budget?
  • Are you organised?
  • Will you use the same bank for all your accounts?

Here are three reasons you might choose multiple savings accounts:

  • You can track your progress of reaching your separate savings goals. You find this easier if all savings accounts are in the same place and can view them together through online banking.
  • They can help you organise your budget because you can see exactly how much you need to put in each week/fortnight/month over the year.
  • Separating your high-interest account also means that it is harder to access your money instantly - even just a few days to transfer - and you can also let it grow on autopilot to slowly but steadily see progress.
MONEY TIP

Keep your emergency fund separate so that you do not accidentally dip into the needed funds.


3 tips to get the most out of your savings account interest


1. Transaction versus Saving


Transaction accounts are a necessary part of everyday life. Look for low-fee accounts, and if the interest looks impressive, check to see what you need to do to earn it. This could include keeping a certain balance or maintaining a low level of withdrawal.


2. Deposits And Withdrawals


Banks set up savings accounts so they have a general idea of what money would be coming in. Thus, it has to be maintained at a certain balance, with a restriction on withdrawals and an obligation to contribute. Not fulfilling those obligations loses your interest for the period.


3. How to avoid fees on a high-interest savings account


Look for an account that suits your saving schedule and waives fees, and make sure you know the conditions of the accounts and any fees and charges you may get.


Summary


High-interest savings accounts are an effective way to save money and grow your deposit through compound interest. The key factors to comparing and choosing a HISA will be:

  • The introductory and standard interest rates
  • The length of the introductory period
  • Any bonus rates or conditional penalties
  • Whether you can link the savings account to your current banking account
  • How the HISA will fit into your ongoing budget plan

High Interest Savings Accounts Pros and Cons


Pros Cons
  • Allows you to reach savings goals by separating savings accounts from your transaction account
  • Introductory interest rates and bonus rates provide a fast way to grow your deposit
  • Rarely ever any fees
  • Limitations on how much the introductory rate can be applied to
  • May have penalties if you don’t meet certain deposit or balance conditions
  • Transfer times can cause a delay in access your money quickly

High-Interest Saving Account FAQ

How do high interest savings accounts work?


A HISA is similar to a standard bank account, and use compound interest calculated daily and paid monthly. High-interest savings accounts are guaranteed by the government, and accrue interest at high rates.

What banks have the best interest rates on savings accounts?


Most major financial institutions in Australia will offer similar high-interest introductory deals for people wishing to deposit money and earn interest. Eligibility for these accounts will vary - such as a minimum deposit amount - and you will need to consider the length of the introductory period to get the best deal.

How can I get more interest on my money?


If you want to earn interest on a cash deposit at your bank and won’t be tempted to withdraw the funds at any time, you can opt for a high-interest savings account. These accounts work differently from a standard savings account, and offer high rates of introductory interest and bonus interest if certain conditions are met.

What savings account has the best interest rate in Australia?


One of the top interest rates in Australia in 2019 is the RaboDirect High-Interest Savings Account with a maximum interest rate of 2.50%. There are many other types of savings accounts available, and you can use our HISA guide to compare offers from various banks.