Pensioner bank accounts are for Australians over the age of 55 who are retired, or anyone receiving an eligible government pension. You can deposit your pension and other income into a pensioner account.
These accounts typically let you earn interest on your money, have minimal fees and offer easy access to your money.
It's worth comparing pensioner bank account options because some banks offer very low interest rates, while others are more competitive.
If you're not receiving a pension, take a look at an everyday bank account for your daily spending instead. To earn more interest, consider a high interest savings account.
These accounts are for:
You may be able to open a pensioner account from the age of 18, depending on what government payment you receive.
Eligible pensions include government pensions from Centrelink or the Department of Veteran's Affairs, such as:
Banks have different eligibility requirements too, so check the bank's website carefully before applying.
Pensioner bank accounts look like fairly typical bank accounts for your everyday spending. You can deposit money in them, including pension income, and spend it via a debit card, ATM withdrawal, online payment or other means.
These accounts typically have no monthly fee. Where pensioner accounts differ from most transaction accounts is that you can earn some interest on the money in your account.
Pensioner bank accounts normally have a tiered interest rate structure. So the more money in your account, the higher your interest rate will be. For example, if you have less than $50,000 in your account, your interest may be 0.50% p.a., however this can go up to 1% or higher depending on how large your balance is.
But pensioner accounts don't offer the most competitive interest rates on the market. Right now, most pensioner accounts offer between 0.50% and 3.50%.
High interest savings accounts offer higher rates, but you need to meet more conditions like depositing a certain amount each month, or making no withdrawals. Customers who are only receiving pension income may struggle to meet these conditions.
The best bank account for any customer depends on their financial goals and life circumstances. A pensioner bank account suits someone who:
To make sure you're getting a good deal with your bank, compare the following features and options:
The MOVE Bank Growth Saver account is an online account that lets you earn a competitive rate. Learn more about this high interest savings account.
The early experiences children have with money can shape their financial behaviour as adults.
The Australian Unity Freedom Saver account lets you earn a competitive rate on balances between $50,000 and $250,000. Learn more about this high interest savings account.
A review of the Australian Unity Freedom Saver account. Learn more about this high interest savings account.
Read Finder's review of the Bendigo Bank Reward Saver. Learn how you can earn the maximum bonus interest rate with this account.
The Great Southern Bank Goal Saver Account has an ongoing bonus rate on balances up to $50,000 for customers aged 18-24.
The Virgin Money Boost savings account (for 18-24 year olds) offers bonus interest each month you deposit money and meet the purchase requirements. Here's how the account works and how to apply.
Worthy causes of all types can benefit from the features of various types of savings accounts for charities.
Your savings goal can be closer with an incentive account that pays you bonus interest just for making a small deposit each month.