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Compare some of the cheapest savings accounts in Australia

Make sure you're not paying unnecessary fees on your savings account. Here's what to look out for.

Updated

When you’re searching for the right savings account to help you boost your bank balance, finding the account with the best interest rate is only half the battle. Ongoing fees and hidden charges can quickly eat away at the money you save no matter how high the interest rate is, so it’s important to consider fees and charges.

When you're searching for the cheapest savings account, it's important to also look at the linked transaction account. Let’s take a look at what you need to do to find the cheapest savings account that has all the features you need.

Compare savings accounts in Australia using the table below

Data indicated here is updated regularly
$
$
months
Name Product Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit Interest Earned
Westpac Life (18-29 year olds only)
3%
0.4%
2.6%
$0
$0 / $0
Under 30? You can earn an ongoing, variable 3% p.a. each month you grow your balance (excluding interest earned) and make 5+ transactions from your linked Westpac Choice transaction account. This bonus rate offer is available on balances up to $30,000 for customers aged 18-29.
Westpac Life (18-29 year olds only)
0.85%
0.4%
0.45%
$0
$0 / $0
Under 30? You can earn an ongoing, variable 0.85% p.a. each month you grow your balance (excluding interest earned) and make 5+ transactions from your linked Westpac Choice transaction account. This bonus rate offer is available on balances up to $30,000 for customers aged 18-29.
MyState Bank Bonus Saver Account
1.65%
0.15%
1.5%
$0
$0 / $0
Ongoing, variable 1.65% p.a. when you deposit at least $20 into the account each month and make five or more Visa Debit card transactions from a linked MyState transaction account.
Citibank Online Saver
0.35%
0.35%
0%
$0
$0 / $0
Introductory rate of 0.35% p.a. for months, reverting to a rate of 0.35% p.a. Available on balances Up to $500,000.
Citibank Online Saver
1.55%
0.35%
1.2%
$0
$0 / $0
Introductory rate of 1.55% p.a. for 4 months, reverting to a rate of 0.35% p.a. Available on balances Up to $500,000.
Westpac Life
0.85%
0.4%
0.45%
$0
$0 / $0
Ongoing, variable 0.85% p.a. each month you deposit money, and make sure your balance is higher at the end of the month than it was at the beginning. No monthly account-keeping fee.
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Compare up to 4 providers


What fees apply to savings accounts?

Most savings account charge no fees at all, the linked transaction account that comes with the savings account might charge a few fees. Before you open a new savings account, check to see if the linked everyday transaction account has the following fees.

Account keeping fee

The main type of fee you need to keep an eye out for with savings accounts is an ongoing account fee. Even a monthly fee of $5 a month equates to $60 over the course of a year, so look for a savings account that charges no ongoing fees. The good news is that the high majority of savings accounts don't charge any ongoing monthly account fees.

Fees attached to deposit conditions

In some cases, savings accounts may come with ongoing service fees attached, but those fees can be waived if you satisfy certain conditions. For example, you may need to deposit a certain minimum amount into your account each month, or you may need to maintain a minimum balance in your account.

An annual fee

In very rare cases, your bank may charge a service fee annually rather than monthly.

Paper statement fee

If you opt to receive paper account statements in the mail rather than electronic statements, you may need to pay a small fee.

Branch and staff-assisted fees

If you make a deposit or withdrawal at a branch, you may have to pay an additional fee.

How can I find the cheapest savings account?

As well as all the fees and charges that apply to an account, you should also consider the following features when comparing cheap savings accounts.

The standard variable interest rate

The interest rate you earn on your savings balance will determine how quickly your balance will grow. Compare the standard variable interest rate on offer from different accounts to see which one comes out on top.

Standard Variable Rate

Introductory or bonus interest

Many savings accounts offer two types of interest: a standard interest rate and a bonus interest rate. In order to access the bonus interest rate you will usually need to satisfy certain conditions, such as depositing a certain amount each month or not making any withdrawals.

Other accounts will offer a special higher interest rate for an introductory period, usually up to 4 months, before reverting to the standard variable rate. Read the fine print closely to make sure you’re aware of the maximum interest rate available, as well as what you have to do to receive it.

Minimum and maximum account balances

It’s worth checking whether your savings account has any limits on the minimum or maximum balance allowed. For example, if your balance exceeds a certain level you may not be able to access the high interest rate on offer.

Deposit requirements

Does the account require you to make a certain number of deposits or deposit a minimum amount each month, or are you free to add money to the account at your own pace? If one of the former applies, can you easily set up a regular transfer to ensure the account requirements are met?

Access to funds

Before you commit your money to a savings account, check to see whether you will be able to access your funds quickly and without penalty once they have been deposited into your account. In some cases, not being able to easily access your funds is a good thing as it will force you to save. In other cases, however, the security of knowing that you can quickly access the money in case of an emergency provides peace of mind.

Account management

Can you visit a branch to make deposits and withdrawals, or is the account managed only via internet, phone and mobile banking? If there's no bank branches, does the bank offer smart ATMs that allow you to deposit cash?


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