savings-high-interest

How to get the maximum variable rate on your savings for balances more than $250,000

Information verified correct on December 11th, 2016

Get the most out of your substantial savings with a high interest account that offers the maximum rates for balances of $250,000 or more.

Your investment or proceeds from an inheritance can all benefit from a savings account where the maximum rate applies to balance over $250,000. These high interest savings accounts are specially designed to help you maximise your earning potential in a passive investment account.

Rates last updated December 11th, 2016
$
$
months
Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit Interest Earned
Bank of Melbourne Incentive Saver
Ongoing, variable 1.85% p.a. when you make at least one deposit and no withdrawals each month. Available on the entire balance.
1.85% 0.01% 1.84% $0 $1 / $1 Open More
Citibank Online Saver
Introductory rate of 3.00% p.a. for 4 months, reverting to a rate of 1.70% p.a. Available on balances below $500,000.
3.00% 1.70% 1.30% $0 $0 / $0 Open More
Westpac Reward Saver
Ongoing, variable 1.85% p.a. when you deposit at least $50 and make no withdrawals each month. Available on the entire balance.
1.85% 0.01% 1.84% $0 $0 / $0 Open More
ANZ Progress Saver
Ongoing, variable 1.91% p.a. when you link to any Australian everyday bank account and deposit $10+ each month. Available on the entire balance.
1.91% 0.01% 1.90% $0 $10 / $10 Open More
Westpac eSaver
Introductory rate of 2.71% p.a. for 5 months, reverting to a rate of 1.25% p.a. Available on the entire balance.
2.71% 1.25% 1.46% $0 $0 / $0 Open More
Bank of Melbourne Maxi Saver
Introductory rate of 3.00% p.a. for 3 months, reverting to 1.05% p.a. Available on the entire balance.
3.00% 1.05% 1.95% $0 $1 / $1 Open More
ANZ Online Saver
Introductory rate of 2.85% p.a. for 6 months, reverting to 1.25% p.a. Available on the entire balance.
2.85% 1.25% 1.60% $0 $0 / $0 Open More
BankSA Maxi Saver
Introductory rate of 3.00% p.a. for 3 months, reverting to a rate of 1.05% p.a. Available on the entire balance.
3.00% 1.05% 1.95% $0 $1 / $1 Open More
BankSA Incentive Saver Account
Ongoing, variable 1.85% p.a. when you make at least one deposit each month and no withdrawals. Available on the entire balance.
1.85% 0.01% 1.84% $0 $0 / $0 Open More
Rates last updated December 11th, 2016
$
$
months
Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit Interest Earned
ME Online Savings Account
Ongoing, variable 3.05% p.a. rate when you link to a ME Everyday Transaction account and make a weekly purchase with your Debit MasterCard using tap & go. Available on balances up to $250,000.
3.05% 1.30% 1.75% $0 $0 / $0 Open More
RaboDirect High Interest Savings Account
Introductory rate of 3.05% p.a. for 4 months, reverting to a rate of 2.00% p.a. Available on balances below $250,000.
3.05% 2.00% 1.05% $0 $0 / $0 Open More
Bankwest Hero Saver
Ongoing, variable 2.65% p.a. rate when you deposit at least $200 each month and make no withdrawals. Available on balances up to $250,000.
2.65% 0.01% 2.64% $0 $0 / $0 Open More
Rates last updated December 11th, 2016
$
3 Mths p.a. 4 Mths p.a. 6 Mths p.a. 12 Mths p.a. 24 Mths p.a. 36 Mths p.a. 48 Mths p.a. 60 Mths p.a. Min Deposit Interest Earned
Bankwest Online Term Deposit
Bankwest Online Term Deposit
2.30% 2.50% 2.70% 2.70% 2.60% 2.60% 2.65% 2.65% $1,000 Open More
RaboDirect Term Deposit
RaboDirect Term Deposit
2.40% - 2.60% 2.70% 2.90% 3.00% 3.05% 3.30% $1,000 Open More
St.George Term Deposit
St.George Term Deposit
2.20% 2.00% 2.30% 2.60% 3.10% 3.20% 2.80% 2.95% $1,000 Open More
Bank of Melbourne Term Deposit
Bank of Melbourne Term Deposit
2.20% 2.00% 2.30% 2.60% 3.10% 3.20% 2.80% 2.95% $1,000 Open More
BankSA Term Deposit
BankSA Term Deposit
2.20% 2.00% 2.30% 2.60% 3.10% 3.20% 2.80% 2.95% $1,000 Open More
Citibank Term Deposit ($75,000)
Citibank Term Deposit ($75,000)
2.50% 2.50% 2.95% 2.35% 2.35% 2.35% 2.35% 2.35% $75,000 Open More
Westpac Term Deposit
Westpac Term Deposit
2.10% 2.00% 2.20% 2.50% 3.00% 3.10% 2.70% 2.85% $5,000 Open More
ING DIRECT Term Deposit
ING DIRECT Term Deposit
2.10% 2.60% 2.10% 3.00% 2.70% - - - $10,000 Open More

How do these accounts work?

When comparing savings accounts you will notice that with some, such as a term deposit, interest rates are tiered in accordance with the account balance. For those who have a savings of at least $250,000, the highest possible rate is typically applied. This higher rate of interest can help you in building your savings.

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How do I compare accounts that offer a higher rate for balances over $250,000?

When you are shopping for a place to park a significant amount of savings, the features of the various accounts will weigh heavily on how high of a return on your investment to expect.

  • Interest rate. A high interest savings account should have rates that give you a better return than a standard savings product. Compare the rates amongst a number of providers to find the one that pays the most back for your deposit.
  • Interest calculation and payment. You can earn interest exponentially if you find an account that calculates daily and pays monthly. Look to make sure that interest payments are deposited into the account once a month, and that the calculation includes the principal combined with the paid interest.
  • Terms. Accounts such as a term deposit or notice saver will give you the maximum rate for balances of over $250,000, but that will restrict your access to your savings. Make sure that if you choose one of these types of savings products, they are at terms that you can abide to.
  • Fees. Read the fine print of all accounts where the maximum rate applies over $250,000 to ensure that no monthly fees will be charged towards your balance.
  • Penalties. Look at the details carefully, especially with term deposits, to understand how penalties will be applied if you were to request your balance before the account matures.
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What are the pros and cons to these account types?

Pros

  • Interest earned. With an account where the maximum rate applies over $250,000, you have the opportunity to increase your wealth just for saving your investment money.
  • Flexibility. If you choose a high interest notice saver or term deposit account, you are given the flexibility in choosing the length of your notice or terms, and when interest is paid into the account.
  • Low risk. Unlike investments into stocks, bonds or even real estate, the risk of losing your savings in an account where the maximum rate applies is minimal.

Cons

  • Security. With a balance that high, you do lose the security of the Australian Government Guarantee Scheme, which protects deposits of up to $250,000.
  • Restrictions. If your savings is a part of your investment funds, you may find that not having instant access to it can cost you the chance at a lucrative opportunity to build your wealth.
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What are the risks?

Not only will your deposit not be protected by the Australian Government Guarantee Scheme, your habits could cause you to lose the chance to maximise your savings. Avoid doing the following if you want to see the biggest return on your high interest savings account investment:

  • Picking terms that are too short or long. With term deposit accounts, the interest rate is fixed, allowing you to know exactly how much you will be earning. If you choose short terms, you could lose out if the rates were to drop before you can rollover the money into a new term.

Frequently asked questions

Will I be obligated to pay taxes on the interest earned?

Yes, interest income is calculated as a part of your income on your tax forms. Make sure to supply the bank with your tax file number so that they can charge you at the right rate while your account is active.

Can I find an account where the maximum rate applies over $250,000 for my SMSF?

Yes, these types of accounts are also suitable for an SMSF, provided that the terms of the SMSF allow it.

Is this a safe way to store my retirement money?

Yes, these types of accounts are appropriate for retirement funds, and can help to secure your financial future once you stop working.

Shirley Liu

Shirley is finder.com.au's publisher for banking and investments. She is currently studying a Masters in Commerce (Finance) and is the author of hundreds of articles. She is passionate about helping Aussies make an informed decision, save money and find the best deal for their needs.

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Related Posts

Savings Account Offers

Learn about our information service
ME Online Savings Account

Maximum Variable Rate

3.05%

Standard Variable Rate

1.30
Citibank Online Saver

Maximum Variable Rate

3.00%

Standard Variable Rate

1.70
Bankwest Hero Saver

Maximum Variable Rate

2.65%

Standard Variable Rate

0.01
RaboDirect High Interest Savings Account

Maximum Variable Rate

3.05%

Standard Variable Rate

2.00

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