High-interest savings accounts are an excellent way to earn more from your savings without taking on significant risk. Whether you’re looking to build an emergency fund, save for a major purchase, or simply grow your wealth, finding the best interest rates available can make a significant difference. In Australia, there are many options, ranging from bonus interest accounts with promotional rates to ongoing high-interest savings accounts. Below, we compare the top options for bonus savings rates up to 5.60% p.a. and ongoing high-interest savings accounts up to 5.20% p.a. to help you choose the right one for your needs.
Top High-Interest Savings Accounts in Australia (November 2024)
Rabobank High Interest Savings Account
- Base Interest Rate: 4.35% p.a.
- Max Interest Rate: 5.60% p.a.
- Bonus Conditions: The 5.60% rate is an introductory offer for the first 4 months on balances up to $250,000.
- Account Features: No account keeping fees, withdrawals allowed, linked transaction account required.
- Best For: Those who want a higher introductory rate and are comfortable with a 4-month bonus period.
Macquarie Savings Account
- Base Interest Rate: 5.00% p.a.
- Max Interest Rate: 5.50% p.a.
- Bonus Conditions: Fixed bonus rate for the first 4 months, on balances up to $250,000.
- Account Features: No account keeping fees, no linked transaction account required, withdrawals allowed.
- Best For: Savers who prefer a fixed bonus rate for the first few months and want flexibility with withdrawals.
BOQ Future Saver
- Base Interest Rate: 0.05% p.a.
- Max Interest Rate: 5.50% p.a.
- Bonus Conditions: Deposit a minimum of $1,000 from an external bank account and make 5 eligible transactions monthly.
- Account Features: No account keeping fees, linked transaction account required, withdrawals allowed.
- Best For: Those who want a simple savings account with monthly transaction requirements to earn bonus interest.
uBank High Interest Savings Account
- Base Interest Rate: Varies
- Max Interest Rate: 5.50% p.a.
- Bonus Conditions: Deposit at least $500 monthly into a linked Spend, Bills, or Save account.
- Account Features: No account keeping fees, no linked transaction account required, withdrawals allowed.
- Best For: Savers looking for a simple, no-fee account with flexibility in how to meet deposit conditions.
Bankwest Easy Saver Plus
- Base Interest Rate: 4.00% p.a.
- Max Interest Rate: 5.35% p.a.
- Bonus Conditions: After 4 months, the account reverts to the Easy Saver variable rate.
- Account Features: No account keeping fees, no linked transaction account required, withdrawals allowed.
- Best For: Those who want a competitive rate for the first few months with no additional transaction account requirements.
Rabobank Premium Saver Account
- Base Interest Rate: 1.45% p.a.
- Max Interest Rate: 5.35% p.a.
- Bonus Conditions: Increase balance by $200 per month to earn the top rate.
- Account Features: No account keeping fees, linked transaction account required, withdrawals allowed.
- Best For: Savers who can commit to regular monthly deposits to meet bonus conditions.
Great Southern Bank Goal Saver Account
- Base Interest Rate: 0.50% p.a.
- Max Interest Rate: 5.35% p.a.
- Bonus Conditions: Deposit $500 each month into the linked Everyday Edge account and make 5 monthly purchases using the Visa Debit card.
- Account Features: No account keeping fees, linked transaction account required, withdrawals allowed.
- Best For: Customers who want to save for specific goals and are willing to meet monthly deposit and spending requirements.
Virgin Money Boost Saver
- Base Interest Rate: 0.05% p.a.
- Max Interest Rate: 5.35% p.a.
- Bonus Conditions: Deposit $1,000 or more monthly and make 5 settled purchases on a linked Go Account.
- Account Features: No account keeping fees, no linked transaction account required, withdrawals not allowed for bonus interest.
- Best For: Those who want to earn a high interest rate but are comfortable with the restrictions on withdrawals.
Bank of Melbourne Incentive Saver
- Base Interest Rate: 1.85% p.a.
- Max Interest Rate: 5.25% p.a.
- Bonus Conditions: Grow your balance by at least $50 (for customers over 21) or $0.01 (for under 21).
- Account Features: No account keeping fees, linked transaction account required, withdrawals allowed.
- Best For: Savers looking for a flexible bonus that doesn’t require large deposit amounts each month.
IMB Bank Reward Saver
- Base Interest Rate: 0% p.a.
- Max Interest Rate: 5.25% p.a.
- Bonus Conditions: No withdrawals and a minimum deposit of $20 each month.
- Account Features: No account keeping fees, linked transaction account required, withdrawals not allowed.
- Best For: Savers who can commit to a no-withdrawal strategy and a small monthly deposit.
Key Factors to Consider When Choosing a High-Interest Savings Account
When comparing high-interest savings accounts, there are several important factors to consider beyond just the interest rate. These factors will help you choose an account that suits your financial goals and lifestyle:
1. Bonus Interest Conditions
Most high-interest savings accounts come with a base rate and a bonus rate that applies when you meet certain conditions. Some common requirements include making regular deposits, using a linked transaction account, and limiting withdrawals. Carefully read these conditions to ensure you can meet them consistently.
2. Introductory Offers vs. Ongoing Rates
Many savings accounts offer introductory interest rates that are significantly higher than the ongoing rate. If you’re not prepared to switch accounts frequently to chase the best deals, you might want to opt for an account with a competitive ongoing rate, even if it’s slightly lower than the promotional rate.
3. Maximum Balance Limits
Some accounts only offer the top interest rate on balances up to a certain limit. For example, you may earn the highest rate on balances up to $50,000, after which a lower rate applies. Be aware of these limits, especially if you plan to save more than the upper limit.
4. Withdrawal Rules
Most bonus savings accounts impose restrictions on withdrawals to ensure that you keep money in the account for a certain period. Some accounts allow withdrawals while maintaining the bonus interest rate, while others require you to keep the money untouched. Understand the withdrawal conditions before opening an account.
5. Fees
While many high-interest savings accounts come with no account keeping fees, some may charge fees for specific services (e.g., for withdrawals from branches). Check the fee structure to ensure you won’t incur unnecessary costs.
6. Linked Transaction Account
Many high-interest savings accounts require a linked transaction account to qualify for the bonus interest rate. While some people prefer this setup for ease of managing funds, others may prefer an account with no linked account requirements for more flexibility.
7. Authorised Deposit-Taking Institutions (ADIs)
Ensure that the account provider is an Authorised Deposit-Taking Institution (ADI). ADIs are protected by the Government’s Financial Claims Scheme, which guarantees your deposits up to $250,000 per institution, offering peace of mind that your funds are safe.
Conclusion
High-interest savings accounts in Australia offer a range of benefits, from generous bonus rates to competitive ongoing interest rates. Whether you’re looking for a bonus savings account with rates up to 5.60% p.a. or an ongoing high-interest savings account with rates up to 5.20% p.a., it’s important to carefully evaluate the bonus conditions, introductory vs. ongoing rates, and any maximum balance limits. By choosing an account that aligns with your savings habits and financial goals, you can maximize your interest earnings and grow your savings effectively.