Pensioner bank accounts

What is a pensioner bank account?

Pensioner bank accounts are for Australians who are retired or receiving an eligible government pension. Age requirements vary by bank, with some accounts available from age 50. 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.

Who is eligible for a pensioner account?

These accounts are for:

• People who are retired and receiving an age pension.
• People receiving other eligible government pensions.

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:

• Age pension
• Disability support pension
• Carer's pension
• Veteran's pension

Banks have different eligibility requirements too, so check the bank's website carefully before applying.

How does a pensioner bank account work?

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.

How much interest can I earn on a pensioner 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 2% 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% p.a. and 3.00% p.a.

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.

How do I find the best pensioner account for me?

The best bank account for any customer depends on their financial goals and life circumstances. A pensioner bank account suits someone who:

• Receives an eligible pension.
• Needs access to that money.

To make sure you're getting a good deal with your bank, compare the following features and options:

• No fees. Look for an account with no monthly account keeping fee.
• Competitive rates. If you're looking at pensioner accounts that pay interest, check to make sure the rates being offered for your balance are competitive with other similar accounts.
• Debit card. If you also want to be able to make purchases directly from your pensioner savings account ensure that it comes with a debit card.
• Accessibility. Most banks let you link your pensioner account to a savings or transaction account, and offer online and app-based banking services.
• ATMs. If you will be making cash withdrawals, look at the bank’s ATM network to ensure that you will always be able to find one close by. You can also use any Big Four bank ATM for free in Australia.
• Cheque facility. If you still conduct transactions using bank cheques, watch out for any fees that come with issuing or cashing cheques.

Frequently asked questions

• Which bank is best for pensioners?

  There's no simple answer for this. The best bank is one that offers products you need, has good customer service and (especially for older Australians) is probably one that has a branch you can easily get to.

  Beyond that, look at fees, interest rates, account features and read reviews online to get a better sense of how good a bank is for you.

• What are the pros and cons of using a pensioner savings account?

  Pros

  • Flexibility. Pensioner savings accounts are structured to make it easier on seniors and those on a pension to take care of their financial needs from the one place.
  • No fees. Banks typically do not charge fees for the use of a pensioner account.
  • Deeming. Under the deeming rules, if the interest you earn on your savings is higher than the government's deemed rates (1.25% on financial assets up to $66,800 for a single pensioner, or $110,600 for a couple, and 3.25% above that, as at 1 July 2026), the extra isn't counted as income for the pension income test.

  Cons

  • Bonus interest. Due to the nature of these accounts, earning bonus interest on balances is rarely an option.
  • Less choice. Not all banks offer a pensioner bank account, so you might find you'd rather open a standard bank account with your current bank instead.

• How much money can I have in a pensioner bank account?

  Each bank has different limits on how much you can put in any account. Some may have no limit at all.

  For people receiving an age pension there is also a pension asset test to consider. If your assets exceed the thresholds your pension will reduce. There are different thresholds if you are single, married, and for home owners and non-home owners.

  You can see the current asset test thresholds on the Services Australia website.

Written by

Alison Banney

Editorial Manager, Money

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Alison is an editor at Finder and a personal finance journalist with over 10 years of experience, having contributed to major financial institutions and publications such as Westpac, Money Magazine, and Yahoo Finance. She is frequently quoted in media outlets like SmartCompany and SBS, offering expert insights on superannuation and money management. Alison holds a Bachelor of Communications in Public Relations and Journalism from the University of Newcastle, and has earned three ASIC RG146 certifications in superannuation, securities and managed investments and general financial advice, ensuring her expertise is fully aligned with ASIC standards. See full bio

Alison's expertise

Alison has written 575 Finder guides across topics including:

• Superannuation
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Co-written by

Richard Whitten

Senior Money Editor

Richard Whitten is Finder’s Senior Money Editor, with over eight years of experience in home loans, property, credit cards and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard started his career in education and textbook publishing in South Korea. He holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Bachelor of Education from the University of Sydney and a Graduate Certificate in Communications from Deakin University. See full bio

Richard's expertise

Richard has written 759 Finder guides across topics including:

• Home loans
• Credit cards
• Personal finance
• Money-saving tips