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Best Savings Account: Australia

By Will Ellis

Last Updated on November 16, 2023

A savings account is the best way to save money while earning interest on the balance.

Separating your everyday cash from your savings is the best way to make the most of it, as you can leave it to accrue interest without worrying about spending it. Allowing yourself to save money with a new account will help you increase your savings faster.

There are different types of savings accounts, and so many are on the market that you may be unsure where to start. You can earn different ranges of interest rates from your savings. In this article, you’ll learn about savings accounts, and we’ll introduce you to the best ones in Australia.

Table of Contents:

What Is a Savings Account
What Are the Different Types of Savings Accounts
Pros and Cons of Savings Accounts
Best Savings Accounts in Australia — Reviews
1. Rabobank High Interest Saving Account
2. Macquarie Savings Account
3. MyState Bank Bonus Saver Account
4. ING Savings Maximiser
5. Virgin Money Boost Saver
6. MOVE Bank Growth Saver
7. ANZ Plus Save Account
8. Bank of Queensland Future Saver Account
9. Great Southern Bank Advantage Saver
10. HomeMe Me Bank Savings Account
11. Ubank High Interest Savings Account
12. Newcastle Permanent Online Savings Account
13. Bank of Sydney Term Deposit
Conclusion
FAQs

What Is a Savings Account? 💰️

A savings account is an interest-bearing deposit account. Banks and other financial institutions offer savings accounts to help customers make the most of their money.

An everyday transaction account, sometimes known as a checking account, usually doesn’t allow you to earn interest on your balance. In contrast, you can earn interest with a savings account. The amount of interest you make will vary from provider.

With a savings account, you can only deposit and send money to and from a linked transaction account. You can’t use your savings account to make purchases, although some may allow you to have your salary paid into your account. The sole purpose of a savings account is to hold money and accrue interest.

When looking for the right savings account, you should consider the following factors:

Interest rates: Typically, you’ll find that interest rates will range between 0.10% to 5.60%. Most banks and other financial institutions may offer introductory or bonus rates if you hold another bank account.
Minimum and maximum account balance: Some providers require you to deposit a certain amount of money into the savings account to keep it open. Others may have a limit on how much you can hold in the account.
Purpose of the account: The whole purpose of a savings account is to save money. However, there are accounts on the market that are designed for specific reasons, for example, house deposits.
Duration of the account: If you’re looking to save for a certain period, consider accounts that allow you to lock away your savings at a fixed rate so you’re guaranteed to make the most of your money.
Other features: Some account providers offer additional features to help you advance your savings even further, like round-ups on purchases, spending insights and handy tips on how to maximise your savings.
Account holding fees: Some providers charge fees for opening and holding an account with them. Most accounts we’ll be showing you soon have no account holding fees.
Requirements: It’s relatively easy to open a savings account in Australia. You’ll need the usual information like primary ID and proof of address. However, to open a savings account with some providers, you may have to open an everyday bank account to achieve maximum interest rates.

Before we introduce you to the best savings accounts in Australia, you should know that you can choose from several types of savings accounts.

What Are the Different Types of Savings Accounts ➡️

When looking for the right savings account, you may want to consider the different types. Some savings accounts offer basic interest rates, while others allow you to earn interest at a higher rate. There are several types of savings accounts that you may benefit from:

Online savings accounts: A savings account that exists solely online, you can set up and manage this account online or via an app.
Bonus interest accounts: A bonus savings account allows you to earn a bonus interest rate when you meet specific criteria for your savings account. It incentivises saving and storing extra cash into the account. Not all savings accounts offer a bonus rate, but some do, and the interest rate depends on the financial institution.
Term deposit accounts: With a term deposit, sometimes known as a fixed-term savings account, you lock away a set amount of money for an agreed time. You can only access the funds after the arranged time. You’ll gain interest on your balance at a guaranteed rate, so you’ll know the return on your money.
High-interest savings accounts: A high-interest savings account allows you to earn interest more competitively than others. You can make more of your savings with the best high-interest savings accounts.
Joint savings account: You can open a savings account with your partner or a member of your household so you can both work towards building your savings.

Pros and Cons of Savings Accounts

There are more positives to opening a savings account than negatives. However, it’s a good idea to see both so you know what to expect when applying.

Pros ✔️

Grow your money: Putting any spare cash into a savings account allows you to earn interest on the balance. All you have to do is have money in an account, and it will earn interest. Opening an account separately for your spare cash is a great way to save money.
Withdraw money any time: Most savings accounts, except term deposit accounts, allow you to withdraw your savings whenever you like.
Safe investment option: Some investing options like cryptocurrency, stocks and shares are unpredictable, and you can lose your investment. Whereas with a savings account, your money only increases.
Develop good saving habits: Moving any spare money from your everyday bank account to a savings account is an excellent habit to develop. It allows you to put money aside to achieve your savings goals.
Widely available: Many financial institutions offer savings accounts, from high-street to digital-only banks. Savings accounts are widely accessible to open.

Cons ✖️

A minimum balance may be required: To open a savings account, some need you to deposit a minimum amount or make a minimum monthly deposit. Always check for any limitations with a savings account before applying.
Limited withdrawals and transfers: Some savings accounts limit the amount of cash withdrawals you can make.
Low-interest rates: Although you can get high-interest savings accounts, you will find that other investment opportunities have higher interest rates.
Account-keeping fees: Some savings account providers charge account-keeping fees.

Best Savings Accounts in Australia — Reviews 🔝️

1. Rabobank High Interest Saving Account

Account fees: None
Maximum interest rate: 5.60% per annum
Minimum account balance: No minimum balance required

There is a four-month introductory rate of 5.60% interest when you sign up for a Rabobank High-Interest Savings Account on deposits up to $250,000. Once the initial period is over, the standard variable interest rate is 4.20%. Interest is calculated daily and paid monthly on the account. The Australian Government Guarantee protects balances up to $250,000.

Visit Rabobank

There are no minimum monthly deposits or withdrawal conditions with this savings account. You can link any Australian everyday bank account to this savings account. When you apply for a savings account, you can connect any transaction accounts you have.

Rabobank is 100% online, so for anyone looking for accessible banking, you can control your savings account online and via mobile banking. There are no branches, so you need internet access and a smartphone. Rabobank uses Digipass, which means you’ll randomly be assigned single-use security codes that allow you to log in and authorise transactions. So, there is no need for the typical username and password to access your account.

2. Macquarie Savings Account

Account fees: None
Max interest rate: 5.40% per annum
Minimum account balance: None

When you apply for a Macquarie Savings Account, you can benefit from an introductory fixed rate of 5.40% for deposits up to $250,000 for the first four months. Then, the interest rate will roll over to competitive ongoing rates. Savings account rates will vary when you add more than $250,000 to your account.

Visit Macquarie

You can withdraw your savings anytime and still earn interest on your remaining balance. To help maximise your savings, you can get your employer or creditors to transfer money directly onto your savings account using the direct credit facility. You’ll need to open a Macquarie Transaction Account to open a savings account, and it doesn’t cost anything to open.

With Macquarie, you can make your money go further with access to exclusive discounts like 10% off eGift cards at over 50 retailers and more at Macquarie Marketplace. You can register for internet and mobile banking; joint savings accounts are also available.

3. MyState Bank Bonus Saver Account

Account fees: No fees
Maximum interest rate: 5% per annum
Minimum account balance: Deposit $20 or more each month

The MyState Bank Bonus Saver Account is a high-interest savings account that allows you to earn up to 5% on your savings balances up to $250,000. There are no fees or penalties for withdrawing money. Savings are guaranteed protection up to $250,000 per customer by the Australian government.

Visit MyState Bank

You can apply for a Bonus Saver account in minutes. Your interest is paid monthly into your savings accounts. If you also open a Glide Everyday account, you can earn up to 5% on your savings balance. You can open a Glide account simultaneously with opening your bonus saver account.

You can maximise your savings with Auto-savings, the feature that helps you safely save with visualised data graphs, move money across to your savings automatically, and help you stay on top of your goals by tracking your savings progress. You must link your bonus saver account to a MyState Bank transaction account. To keep your account open, you must make a minimum deposit of $20 monthly and make five debit card transactions.

4. ING Savings Maximiser

Account fees: None
Maximum interest rate: 5.50% per annum
Minimum account balance: No minimum balance required

The ING Savings Maximiser is a high variable interest savings account that allows eligible customers to earn 5.50% interest on balances up to $100,000. You can maximise your savings with the ING Everyday Round Up feature; if you use the Orange Everyday account, you can round up all your purchases and send them to your savings account.

Visit ING

To get the highest interest rate, you need to have an Orange Everyday bank account, deposit $1,000 from any personal ING account, make five or more settled ING card purchases and grow your nominated Savings Maximiser (excluding interest earned for the current month). Otherwise, the standard variable rate is 0.55% per annum.

You can transfer money from your savings account with your linked account. When you sign up, you can create a savings plan and set up automatic deposits if you are working towards a specific savings goal. This account also allows salary deposits.

5. Virgin Money Boost Saver

Account fees: None
Max interest rate: 5.05% per annum
Minimum account balance: None

The Boost Saver account is Virgin Money’s highest-interest savings account. The base interest rate is 0.05%, but you can earn an additional 5% bonus interest rate if you meet the monthly criteria of depositing at least $1,000 into your Go Account and making at least five purchases. You’ll benefit from a 0.30% notice interest rate when you enable the Lock Saver Feature.

Visit Virgin Money

You can save smarter by setting up to nine personalised savings goals. Gain access to clever insights and real-time alerts to help you build good money habits. You’ll benefit from additional rewards from Virgin Money Rewards and bonus interest rates if you link the Boost Saver with the Everyday Go account. When you enable the Round up feature on the Go Account, you can round up your purchases and start saving immediately.

The Boost Saver account is designed for mobile so that you can manage your finances from the app anytime.

6. MOVE Bank Growth Saver

Account fees: No fees
Maximum interest rate: 5.50% per annum
Minimum account balance: $1

With MOVE Bank Growth Saver, you can earn a bonus interest rate on balances up to $25,000 when you deposit $200 and make no monthly withdrawals. The bonus interest conditions work in your favour because you’re guaranteed decent interest on at least $200 of your savings. The minimum interest rate is 0.10% per annum. Interest is calculated on your daily balance and paid monthly.

Visit MOVE Bank

The MOVE bank Growth Saver account is an online savings account you can set up and control via online banking. You can view all of your bank statements online. You can use any transaction account with this savings account.

You can also use the Move Bank Savings Plan Calculator on their website to work out how much interest you’ll make before applying for an account. The online calculator is ideal if you’ve already got a lump sum of money saved or have a rough idea of how much you’ll deposit into your account, as you can predict potential accumulated interest.

7. ANZ Plus Save Account

Account fees: No fees
Maximum interest rate: 4.65% per annum
Minimum account balance: No monthly deposit conditions

You can earn 4.65% interest if your ANZ Save account is under $250,000. With this savings account, there is an automatic monthly high-interest rate. If your balance exceeds $250,000, you may be offered lower interest rates.

You can set and track up to 99 savings goals on one account to work towards your savings goals.

Visit ANZ

You can select a target date and amount, and the app will determine how much money you need to save weekly to achieve your goal.

You must have a linked ANZ Plus banking account to apply for a Save account. There is no internet banking, and you must use the ANZ Plus app to activate and manage your savings account. If you need extra support or savings tips, you can participate in interactive workshops with ANZ coaches to help you master budgeting and saving.

8. Bank of Queensland Future Saver Account

Account fees: No fees
Max interest rate: 5.50% per annum
Minimum account balance: $1,000

If you’re 14 to 35, you can open a Bank of Queensland Future Saver Account and warm a 5.50% bonus interest rate for balances up to $50,000. For balances between $50,000 and $250,000, you can earn a 3% interest rate per annum. To benefit from bonus interest, you must deposit $1,000 into your linked Bank of Queensland Everyday Account each month and make at least five eligible transactions. If you don’t meet the conditions, you’ll only earn the standard rate of 0.05% that month.

Visit Bank of Queensland

You can make withdrawals and still earn bonus interest. You can set personal savings goals and track progress. You can only access your savings account with the myBQQ mobile app. You can switch on Round Ups on our everyday account, and the money will be automatically sent to your savings account.

If you’re over 35, you can apply for the Smart Saver Account that allows you to earn up to 5.10% per annum on deposit balances up to $250,000.

9. Great Southern Bank Advantage Saver

Account fees or monthly fees: No fees
Maximum interest rate: 4.85% per annum
Minimum account balance: If you want the bonus interest rate, then yes, $250

You can benefit from the ongoing 4.85% bonus rate if you ensure to have at least $250 in your Advantage Saver from Great Southern Bank.

The base rate is 0.50%, but keeping your balance above $250 monthly can earn an additional bonus of 4.35% per annum.

Visit Great Southern Bank

You can increase your savings quickly with the Boost feature. You set an amount between $0.01 and $5 to automatically transfer to your savings account every time you use a Great Southern Bank Visa Debit card. So, you can save as you spend and turn it on and off at any time. You can also set up notifications to receive updates on your account and savings.

If you’re worried about using your savings before they reach their true potential, you can hide your account in The Vault. The Vault helps reduce the temptation of dipping into your savings by hiding your savings from sight- don’t worry, you can still access it quickly if there’s an emergency.

10. HomeMe Me Bank Savings Account

Account keeping fees: No fees
Maximum interest rate: 5.65% on balances up to $100,000
Minimum account balance: $2,000 per month

The HomeMe Savings Account is designed to help you save for a home deposit. The base interest rate for this account is 0.55%. If you open a SpendME transaction account, deposit at least $2,000 into the transaction account every month and make regular contributions to your savings account, you can benefit from a 5.65% bonus interest rate. This savings account is ideal for growing your savings into a secure deposit for a home. The high deposit to keep high interest rates motivates you to save quickly.

Visit HomeMe Me Bank

With your savings account, you will gain access to the new ME Go banking app that allows you to manage your money and co-manage joint accounts. You can supercharge your savings with personalised insights and goal tracking.

You can top up your savings as you spend with Round-Ups. Whenever you purchase with linked accounts from Me Bank, your account will round up your purchases to the nearest AUD dollar and send it to your savings account.

11. Ubank High Interest Savings Account

Account fees: No fees
Maximum interest rate: 5% per annum
Minimum account balance: $200

You can benefit from a high interest rate of 5% when you link your High Interest Saving Account to a Ubank Spend account and transfer $200 each month into your savings. If you don’t meet the criteria for the bonus rate, you can still earn interest on your savings with a 0.10% base rate. You’ll automatically get a Spend account when you open a Save account.

Visit Ubank

You can split your money into up to 10 Save accounts and track each account’s progress. There are no fees on any of your savings accounts. You can set saving targets, and you’ll receive a personalised plan and tips on how to reach your goal successfully. You can alter your target anytime, and Ubank will adjust your plan to get there.

You can use your Save account to pay bills and set up direct debits using BPAY. You can transfer in and out of your savings account with PayID and Osko. When you withdraw money, your bonus interest rate won’t be affected. You connect over 180 financial institutions to your account, including investments and other savings accounts. An easy savings graph shows all your total savings across linked accounts.

12. Newcastle Permanent Online Savings Account

Account fees: No fees
Max interest rate: 5%
Minimum account balance: None

With the Newcastle Permanent Online Savings Account, you can earn from 1% to 5% on your savings balance. The standard variable rate is 1%, but you can benefit from a 5% introductory bonus rate for the first three months of opening the account. Interest is calculated daily and credited on the last day of each calendar month.

You can access and manage your savings account using the app or internet banking on any device.

Visit Newcastle Permanent

There are no fees for this account and no minimum monthly deposit required to earn interest. For more assistance with your finances, Newcastle Permanent offers a range of tools in their Resource Hub, like budgeting tools.

13. Bank of Sydney Term Deposit

Account fees: No account fees
Maximum interest rate: 5.15%
Minimum account balance: $1,000 deposit to open account

If you’re looking to lock away your savings and earn a fixed amount of interest on your savings, consider a Term Deposit from the Bank of Sydney. You can lock away your savings from one to 13 months. The best rate is 5.15% per annum, and that’s for a 12-month fixed term. The lowest interest rate is 1.25%, and that’s for one month. You can earn interest on balances up to $500,000.

Visit Bank of Sydney

You must have another account with the Bank of Sydney to pay the interest from this account. A Term Deposit is ideal if you struggle with using your savings early, as you can’t withdraw before the term is finished. You will also know how much interest will accrue before the period begins.

Leading Savings Accounts for Australians: The Verdict 👀️

Whether you’re looking for a simple savings account or a high-interest savings account, you can use one of the ones from our best list. Remember to compare savings accounts to find the best one for your financial situation.

If you choose a high street bank or financial institution for your savings account, always compare interest paid on your savings. Some providers may have a compound interest calculator, or you can use an online one to maximise your savings balance.

Frequently Asked Questions 🔎️

What Are High-Interest Savings Accounts?

A high-interest savings account allows you to earn interest at a more competitive interest rate than other savings accounts. You can make more of your savings with the best high-interest savings accounts. High-interest savings accounts have variable interest rates, so your interest could go up or down over time.

What Bank Has the Best Interest Rate for Savings in Australia?

If you’re looking for a high-interest savings account, consider the Me HomeMe Savings Account. This savings account is designed to help you save for a home deposit. The base interest rate for this account is 0.55%. However, if you open a SpendME transaction account, deposit at least $2,000 into the transaction account every month and make regular contributions to your savings account, you can benefit from a 5.65% bonus interest rate.

What Is the Best Savings Account in Australia?

The best savings account at the top of our list is the Rabobank High Interest Saving Account. No fees or minimum balance are required; a four-month introductory rate is 5.60%. Once the initial period is over, the standard variable interest rate is 4.20%.

What Is a Cash Management Account?

A cash management account is a transaction account used by investors to receive funds from investments such as proceeds to sales and dividends. The funds are used to purchase new investments. Some cash management accounts allow investors to earn interest on balances.