Need to know
- Interest rates on bank deposit accounts have increased noticeably over the last two-and-a-half years, meaning there are now more benefits to old-fashioned saving
- Some accounts will pay you interest with few or no conditions – others will give you a better rate, but come with specific requirements
- Before making a deposit, check that you can meet any conditions and whether your savings would be better off elsewhere
Australia's cash rate has jumped up a lot since it first began rising just over two-and-a-half years ago, meaning the interest rates on deposit accounts at banks across the country have also been on an upwards trajectory.
High-interest savings accounts may still not sound as appealing as some modern investments, but they're finally starting to live up to their name.
Where rates on these products were previously languishing at below 1%, they're now hovering around 5.50%.
High-interest savings accounts are finally starting to live up to their name
With the money market showing some life, now could be a good time to revisit this long-time savings favourite and see which banks are offering the best rates.
Luckily, we've filtered through the terms and conditions for you to find the best high-interest savings accounts worth considering.
On this page:
- What is a high-interest savings account?
- How do high-interest savings accounts work?
- Best high-interest savings accounts by base rate
- Best high-interest savings accounts by bonus rate
- Best of the big four: ANZ, CBA, NAB and Westpac
- How much does a high-interest savings account pay?
- High-interest account traps to be aware of
- The problem with the current high interest rates
What is a high-interest savings account?
High-interest savings accounts are bank accounts that pay you a higher rate of interest on the money you put in them.
Because they offer higher rates than most other bank accounts, many of these products come with conditions, such as depositing a certain amount each month.
Like regular savings accounts, they're also usually online and not connected with a credit or debit card, so it's not as easy to dip into your savings.
Because they offer higher rates than most other bank accounts, many of these products come with conditions
In order to get one of these accounts, you'll also often have to open an everyday spending or transaction account at the same bank, some of which may come with their own fees or conditions. Our list identifies which products require you to take this extra step.
Thankfully, most high-interest savings accounts don't come with ongoing account-keeping, service or admin fees. In any case, we outline the fee situation for each of the best performing accounts (and their associated transaction accounts) in our list below.
You get more money for your deposit in a high-interest savings account than in a regular savings or transaction product.
How do high-interest savings accounts work?
The percentage figure you'll see advertised alongside a high-interest savings account refers to the annual rate of interest you'll be paid on the money you keep in that account.
Even though this figure represents an annual return, for each of the accounts listed here, interest is calculated daily (to account for some months having more days than others) and paid monthly.
Provided you've met any account conditions, interest will appear in your account after the month it was earned.
How to know where to put your savings
Before you go switching accounts to cash in on the higher rates, pause to consider the best way to make your savings count:
- When choosing which high-interest option to go for, don't fall for teasers (i.e. accounts that offer generous introductory rates, but only for the first few months) or options with deposit or transaction conditions that you might find hard to meet.
- If you have debts owing to buy now, pay later (BNPL) services or credit cards, your first priority should be to pay them off before putting money aside for saving.
- If you've got a mortgage, a 100% offset account might be a better destination for your cash – keeping your money in an offset can help you reduce the amount of interest you'll pay over the life of your loan.
Best high-interest savings accounts by base rate
These accounts offer the best ongoing annual interest rates without requiring you to make any regular deposits or transactions, or making you wait a certain amount of time before you can access your money.
Products with tiered rates (different interest rates for different parts of a deposit) are ranked by their lowest tier – that is, the initial rate they offer customers.
Any introductory rates (which usually only last for a few months) included with accounts are mentioned, but don't factor into a product's ranking. Accounts exclusively for children are not included.
(Last updated 29 November 2024.)
Image: Australian Unity
Freedom Saver (Australian Unity) – 5.10%
On balances up to $50,000.
- You'll also have to open a linked transaction account with the same provider.
- No ongoing account-keeping fees on this account or the linked transaction account, but a dormant account fee of $2.50 per month is charged to accounts with no activity for 12 months.
Image: ANZ
Flexi Saver (ANZ Plus) – 5.00%
On balances up to $5000.
- You'll also have to open Plus and Save accounts with the same provider.
- No ongoing account-keeping fees on this account or other accounts from the same provider.
- Exclusive to the ANZ Plus app and not accessible via ANZ's standard online banking.
Image: Macquarie Bank
Savings Account (Macquarie) – 5.00%
On balances up to $1 million. An introductory rate of 5.50% is available for the first four months on balances up to $250,000.
- You'll also have to open a linked transaction account with the same provider.
- No ongoing account-keeping fees on this account or the linked transaction account.
Image: Bank of Queensland
Simple Saver Account (Bank of Queensland) – 4.85%
On balances up to $5 million.
- Exclusive to the myBOQ app and not accessible via BOQ's standard online banking.
- No ongoing account-keeping fees on this account or on everyday transaction accounts from the same provider.
Image: Unity Bank
MoneyMAX Account (Unity Bank) – 4.70%
- No ongoing account-keeping fees on this account or everyday transaction accounts from the same provider.
- You'll have to pay $10 to become a member of Unity Bank.
Note: Some other banks, including Firefighters Mutual and UniBank, have accounts with base rates higher than some listed here, but we've chosen to leave them off this list because their products are only available to current and former workers in particular industries and their families.
Read more about how to save money:
5 steps to better, cheaper health insurance
How to manage your money when you travel
The cost saving measures that don't work
Best high-interest savings accounts by bonus rate
Able to make a few concessions with your money without breaking your budget? These accounts top the savings rate market, but require depositors to make certain sized deposits and numbers of transactions in return.
It's important to know that if you can't meet these conditions, the bank will only pay you a base rate of interest (which can be as low as 0.05%), or no interest at all.
(Last updated 29 November 2024)
Image: Bank of Queensland
Future Saver Account (Bank of Queensland) – 5.50%
On balances up to $50,000.
- Conditions: Must be 14–35 years old. Deposit at least $1000 into (cash and cheques not included), and make five settled, eligible transactions from, a linked Everyday Account in a month.
- You'll also have to open a linked Everyday transaction account with the same provider.
- No ongoing account-keeping fees on this account or the linked transaction account.
- Exclusive to the myBOQ app and not accessible through BOQ's standard online banking.
Image: Move Bank
Growth Saver (MOVE Bank) – 5.50%
On balances up to $25,000.
- Conditions: Deposit at least $200 and make no withdrawals in a month.
- No ongoing account-keeping fees.
Image: Ubank
Save Account (Ubank) – 5.50%
On balances up to $100,000.
- Conditions: Deposit at least $500 into any Ubank account every month.
- You'll also have to open a linked transaction account with the same provider.
- No ongoing account-keeping fees on this account or the linked transaction account.
Image: ING
Savings Maximiser (ING) – 5.50%
On balances up to $100,000. Can only apply to one account.
- Conditions: Deposit at least $1000 into any personal ING account in your name and make at least five settled purchases with an ING debit or credit card in a month. The savings account must also have a higher closing balance than the previous month (excluding interest).
- You'll also have to open a linked transaction account with the same provider.
- No ongoing account-keeping fees on this account or the linked transaction account.
Image: Virgin Money
Boost Saver (Virgin Money) – 5.35%
On balances up to $250,000.
- Conditions: Deposit at least $1000 into a linked Go account and make five settled purchases with your Go debit card, direct debits or BPAY payments every month. Enable the Lock Saver feature and provide 32 days' notice before unlocking your account or withdrawing money.
- You'll also have to open a linked transaction account with the same provider.
- No ongoing account-keeping fees on this account or the linked transaction account.
Image: Great Southern Bank
Goal Saver (Great Southern Bank) – 5.35%
On balances up to $50,000.
- Conditions: Must be 18–24 years old. Deposit at least $500 into a linked Everyday Edge Account and make five settled purchases with your Everyday Edge debit card every month.
- You'll also have to open a linked transaction account with the same provider.
- No ongoing account-keeping fees on this account or the linked transaction account.
Image: Rabobank
PremiumSaver (Rabobank) – 5.35%
On balances up to $250,000.
- Conditions: Account balance must be $200 higher than it was at the beginning of the month (excluding interest).
- You'll have to already have another bank account in your name at another financial institution.
- No ongoing account-keeping fees on this account.
Why are some bank accounts only available via an app?
You'll notice several of the accounts listed above are only available through the relevant bank's app and can't be accessed via online banking on its website.
Earlier this year, we asked the banks offering these why this is the case.
BOQ Group, which offers the Bank of Queensland accounts, says it's prioritising mobile platforms for these products because of "rapidly changing" customer needs and mobile usage.
An app-only approach can also help a bank's bottom line
ANZ says it's also seeing more people wanting to go online and use their smartphones for banking and that, with ANZ Plus, the bank is seeking to respond to these consumer trends.
However, an app-only approach can also help a bank's bottom line.
Last month, ANZ revealed that its costs to acquire and service customers are 45% and 35% cheaper, respectively, through ANZ Plus than other parts of its retail business.
Best of the big four: ANZ, CBA, NAB and Westpac
While they do offer competitive rates on some limited savings products, Australia's major lenders generally lag behind newer and smaller banks on deposit returns. Here's what you could be getting if you're a customer at one of the big four:
(Last updated 29 November 2024)
Image: ANZ
ANZ
- ANZ Plus Flex Saver – 5.00%. See details above. 2.00% on balances over $5000.
- ANZ Plus Save – 5.00%. Conditions: Grow your account balance by at least $100 (on top of any interest you receive) every month, otherwise it reverts to 0.50%. No ongoing account-keeping fees.
- Progress Saver – 4.10%. Conditions: Deposit at least $10 in one transaction in a month and make no withdrawals or transfers or incur any fees or charges, otherwise it reverts to 0.01%. No ongoing account-keeping fees.
- Online Saver – 1.40%. (3.65% for the first three months.) No ongoing account-keeping fees.
Image: Commonwealth Bank
CBA
- GoalSaver – 4.90%. Conditions: Make at least one deposit and have a growing account balance in a month, excluding interest and bank-initiated transactions, otherwise it reverts to 0.40%. No ongoing account-keeping fees.
- NetBank Saver – 2.35%. 5.10% for the first five months on your first NetBank Saver account. No ongoing account-keeping fees.
Image: NAB
NAB
- Reward Saver – 5.00%. Conditions: Make at least one deposit and no withdrawals in a month, otherwise it reverts to 0.35%. No ongoing account-keeping fees.
- iSaver – 2.00%. 5.00% for the first four months on balances up to $20 million if you haven't held an iSaver account in the last 12 months. No ongoing account-keeping fees.
Image: Westpac
Westpac
- Life – 5.00%. Conditions: Make at least one deposit and have a growing account balance in a month, otherwise it reverts to 1.85%. 18–29 year olds with this account can earn 5.20% on balances up to $30,000 if they meet the previous criteria and make five eligible and settled purchases with a debit card linked to their Westpac Choice account. No ongoing account-keeping fees.
- eSaver – 1.10%. 5.00% for the first five months if opened online by sole applicants who have never held an eSaver account before. No ongoing account-keeping fees.
How much does a high-interest savings account pay?
If you had $1000 in an account and deposited $100 into it each week for a year, you would earn…
$36 in an account earning 1.00% interest
$163 in an account earning 4.50% interest.
$181 in an account earning 5.00% interest
$199 in an account earning 5.50% interest
$207 in an account earning 5.70% interest
Source: mozo.com.au
High-interest account traps to be aware of
As we've highlighted, some high-interest savings accounts come with a web of conditions and caveats.
You should make sure you will be able to meet these requirements if you want to take advantage of the bonus rates these accounts offer. If you can't, in many cases your rate will be slashed and end up being much lower than what you would be getting in a condition-free account.
Rate tease
'Teaser' accounts make a big show of offering high rates with no conditions – only to reveal in the fine print that holders will enjoy this introductory rate for just the first few months.
There are quite a few of these out there, so always look at the details of a deal before you park your cash and be prepared to move your savings elsewhere if you don't want to be hit with a lower base rate.
CHOICE tip: Accounts with a short-term bonus rate can work for you if you need a place to leave your money for a short period of time, as they're more flexible than a term deposit.
Minimum monthly deposits
Many accounts that offer a top-shelf rate will make you work for it, requiring you to make set monthly deposits into it or a linked transaction product.
For some banks, the bar for these contributions is as high as $1000, so make sure you can afford to make such concessions before chasing these higher rates.
No withdrawals and positive balances
These minimum-deposit conditions often come paired with a "growing balance" clause, which slashes your rate to next to nothing if you make a transfer and leave the account holding less money than the previous month. Others only provide bonus rates if you make no withdrawals at all.
Be prepared to leave your money untouched for a while if you want to reap some serious interest
If your account comes with these conditions, be prepared to leave your money untouched for a while if you want to reap some serious interest.
Linked accounts and mandatory purchases
Quite a few of the best savings options currently on the market require you to have a transaction account with the bank you're saving with.
In the age where you can set up a bank account online, this is a relatively simple task, but be aware that a linked transaction account may come with ongoing fees. You might also have to make a minimum number of purchases using the card linked to that account every month if you want to keep your rate up.
CHOICE tip: Make sure you only use this sort of account if you can fulfil its conditions without inconveniencing yourself or your budget.
Age limits and occupation eligibility
We've decided to overlook a few accounts that would have made it onto our list because their competitive rates are only available to children or teenagers. Always check you're putting your money somewhere that's age-appropriate.
We've also left off any accounts offered by banks who only offer their products to current and former workers in particular sectors (such as education or the emergency services) or relatives of people who meet this criteria.
The problem with the current high interest rates
While interest rates have been increasing over the last two years, we're concerned they're not flowing through to savers (who benefit) as much as they are to mortgage holders and borrowers (who don't).
In 2023, the ACCC conducted an inquiry into the interest rates on deposit products such as savings accounts and how they compare to those on loans, after noting that the changes to saving rates had been "smaller or conditional".
While interest rates have gone up over the last two years, we're concerned they're not flowing through to savers (who benefit) as much as they are to mortgage holders and borrowers (who don't)
CHOICE has been weighing in on this issue, calling for banks to be required to ensure they're offering fair value on deposits, move customers to their best savings rate, and make it easier to close accounts.
In June, the federal government responded to the ACCC report, announcing changes that it promises will "help Australians get a better deal on banking products."
These include making banks tell customers when the interest rate on a savings account is changing and a program to work with banks to help improve how customers are notified about bonus interest rate offers.
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Stock images: Getty, unless otherwise stated.
