Best savings accounts

Make your money work harder for you by opening a savings account with a competitive interest rate and no fees.

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Looking for the best savings account in Australia? The best savings account isn't always the one with the best interest rate. Instead, the best savings account for you is one that has a high interest rate, monthly deposit conditions you can easily meet and withdrawal restrictions you're comfortable with.

In this guide we'll outline exactly what to consider when looking for the best savings account, and the traps to avoid so you don't get stung with high fees or a lower interest rate. Or if you want to get straight to it, have a look at the savings accounts in the table below to find one that's right for you.

High interest savings account offer

Westpac Life (18-29 year olds only)

3 % p.a.

max rate

0.40 % p.a.

standard variable rate

High interest savings account offer

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.

  • Maximum Rate: 3% p.a.
  • Standard Variable Rate: 0.4% p.a.
  • Monthly deposit required: $1
  • Monthly fees: $0
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Find the best savings account for you

Use our table below to figure out which savings account will suit you best - here's how:

      1. Put in your starting deposit amount
      2. Put in the amount you plan to deposit each month
      3. Input how long you plan to save for (this is the "period")
      4. Then just click "Calculate"

The best savings account isn't necessarily the one with the highest interest rate (although a high rate is certainly important!). We'll outline the other features to consider now, but if you're simply looking for the best savings rate here are some of the highest available.

The top 7 savings accounts by maximum variable rate

Note that we haven't looked at absolutely every account in the market, and these are just some of the top rates available in our database.

Which type of savings account is best for me?

The best savings account for you will depend on the type of saver you are, what you want from a savings account and what your savings goals are.

💬 "I want to be rewarded for regular saving."

Best savings account option: Bonus savings account

Bonus saver accounts reward you with a higher bonus interest rate each month you meet the account conditions. This usually involves depositing a certain amount of money each month. These are great accounts if you're looking for an extra incentive to make regular deposits into your savings, and be rewarded for good savings habits.

Some good options include:


💬 "I'm looking for a special sign-up rate or new customer bonus."

Best savings account option: Introductory saver account

An introductory saver account is best if you're looking for a sign-up deal, as these account offer extra bonus interest to new customers. They're often the best rates in the market, but after the honeymoon period is over (usually three to six months) the bonus rate will drop back down to the standard rate. You can learn more about introductory savings accounts or see a couple of good options below.

Some good options include:


💬 "I don't want to commit to a high monthly deposit amount."

Best savings account option: Bonus savings account

Some bonus savings accounts offer bonus interest without setting a monthly deposit requirement. Instead, these accounts might require that you open a transaction account with the same bank and make a certain number of purchases a month, or they might require that you make no withdrawals.

If you're happy to deposit some money each month but don't want to commit to a high amount, you can also get a bonus saver that pays bonus interest when you deposit as little as $20 a month.

Some good options include:

  • MyState Bonus Saver: 1.65% p.a. when you deposit $20/ month and make 5+ Visa Debit card transactions.
  • ME Online Savings Account. 1.55% p.a. when you link to a ME Everyday account make 4+ tap & go purchases per month. There's no deposit conditions to meet.

💬 "I'm young and want to kick-start my savings"

Best savings account option: A youth or student savings account

Youth and student savings accounts often offer a better interest rate with less account conditions to meet. By having a lower monthly deposit condition and more flexible access to your savings, these accounts can help you develop good savings habits while you're starting your savings journey.

Some good options include:


💬 "I've got a short-term savings goal."

Best savings account option: Introductory saver account

If you're saving for something for three to six months only (like a holiday or a special event), an introductory saver will offer a special high bonus rate for a few months only. The good thing about these accounts are they usually have no conditions to meet to earn the bonus rate, as long as you're a new customer. So it's a low-maintenance, set-and-forget option for short-term goals.

Some good options include:


Do I need a savings account, a transaction account or both?

Most people tend to have a savings account and a bank account (or what's usually called an everyday transaction account) linked together. The everyday transaction account lets you pay bills via BPAY and usually comes with a linked debit card. This is the account you can use for your day to day purchases and transactions.

A savings account on the other hand doesn't have any of these spending features. This is because the aim of a savings account is to keep depositing rather than spending the money. The most important difference is that a savings account gives you an interest rate.

Most savings accounts require a linked transaction account with the same bank. This is because you'll use the transaction account to move money back and forth from your savings when you need to.

Finding the best savings account: Tips and traps

Tips

  • Look for a competitive interest rate. The higher the interest rate, the more money you'll earn in interest. You want a savings account that offers a competitive interest rate, but only if you can meet the deposit conditions.
  • Make sure you can comfortably meet the account conditions. Don't open a savings account with a high monthly deposit requirement if you'll struggle to meet this each month. You're likely better off opting for an account with a slightly lower interest rate and account conditions that are easier to meet.
  • Consider smaller, less known banks. Don't be afraid to consider a smaller bank that you might not have heard of. These banks often offer more competitive interest rates, and they're regulated in the same way as the Big Four so your savings are protected under the Government Guarantee Scheme.

Traps

  • The linked transaction account could charge high fees. Most savings accounts will require you to also open an everyday transaction account with the same bank. This is how you can move money in and out of your savings account. When picking a savings account, make sure you check the fees charged on the linked transaction account. Some transaction accounts can charge monthly account fees of $5 or more, while others change no monthly account fees.
  • The variable base rate could be very poor. Don't fall into the trap of picking a savings account with a high bonus rate only to discover you can't meet the account conditions. If this is the case, you'll then earn the variable base rate instead which could be as low as 0.01% p.a.
  • The bonus rate might only apply on a set balance. Some savings accounts offer a really attractive bonus interest rate, however it's only applied on a set balance (for example up to $100,000). If you have a balance larger than the limit, you could actually earn no interest at all.

How do I find the best savings interest rate on Finder?

Our comparison tool above can sort products in ascending order so you can find the best interest rate at the time. Here's what the different table column headings mean, and how to sort the table:

  • Compare check box under each bank's name: You can select multiple savings accounts in the table to compare, if you don't want to compare the whole list.
  • Maximum variable rate p.a.: This is the standard variable rate plus the bonus interest rate, and is the maximum interest rate you're able to earn with each savings account.
  • Standard variable rate p.a.: This is the standard, base interest rate you'll receive even if the deposit conditions aren't met.
  • Bonus interest p.a.: This is extra bonus interest you'll receive on top of the standard variable rate when the account conditions are met.
  • Fees. This is the monthly account keeping fee, if there is one (there usually isn't)
  • Min bal / min deposit: This tells you if there's a minimum balance requirement you need to maintain.
  • Interest earned. This is the amount of interest you stand to earn based on the information provided in the calculator above the table (initial deposit, ongoing deposit and length of time)

How do I open a savings account?

In most cases you can apply and open the savings account online, as long as you’re able to provide documentation that confirms your identity and residency. If you're a new customer to the bank, you'll need to verify your identity for legal reasons. For the online savings and bonus saver accounts, some banks will allow an Australian as young as 12 years old to have an account opened in their name.

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45 Responses

  1. Default Gravatar
    SarahAugust 6, 2019

    Hi guys, when was this page last updated? I feel like these rates are changing on a daily basis.

    Thanks,
    Erin

    • Default Gravatar
      NikkiAugust 7, 2019

      Hi Sarah,

      Thanks for getting in touch! This page was updated last August 7th, 2019. Hope this was helpful. Don’t hesitate to message us back if you have more questions.

      Best,
      Nikki

  2. Default Gravatar
    KylieApril 25, 2019

    What would be the best bank to invest around $400,000? A high interest rate savings account or a term deposit?

    • Avatarfinder Customer Care
      MaiApril 26, 2019Staff

      Hi Kylie,

      Thank you for reaching out.

      In most case, term deposits will give you a highest interest rate than savings account. generally, high interest savings account require some conditions before you are able to receive a high interest rate such as required monthly deposit, no withdraw, etc.

      But regardless, it will depend on you how you wish to deposit your money. I suggest that you use the estimate calculator on this page to have an idea what savings account can give you the highest interest and if you are good with the terms set. Alternatively, you can also check our Term Deposit page to check on the term deposit interest dates. You can use the term deposit calculator to know your estimated interest rates.

      Hope you find this useful.

      Kind Regards,
      Mai

  3. Default Gravatar
    BenJanuary 15, 2019

    Can I invest $1,000,000.00 over 12 months with 3.1% interest giving a straight $31,000.00 return?

    Thanks.

    • Avatarfinder Customer Care
      JeniJanuary 20, 2019Staff

      Hi Ben,

      Thank you for getting in touch with finder.

      This maximum variable rate of 3.10% from HSBC is an introductory rate for 4 months only and for balances below $1,000,000. If you are planning to invest your $1,000,000 for 12 months, you may check out your options on this page. Please make sure that you’ve read the relevant T&Cs or PDS of the account to help consider whether the product is right for you.

      Please note that the government guarantee covers deposits up to $250,000 only.

      I hope this helps.

      Thank you and have a wonderful day!

      Cheers,
      Jeni

  4. Default Gravatar
    JohnDecember 6, 2018

    Thanks for your website – very informative!! I notice that there is one question
    you haven’t covered anywhere that I can see ie. Is there a penalty for closing
    an account after the ‘bonus’ period of 3 or 4 months on a Savings account has
    finished? This area seems to be kept very quiet!!

    • Avatarfinder Customer Care
      MayDecember 12, 2018Staff

      Hi John,

      Thanks for your inquiry.

      For on-call accounts (or high savings accounts), usually, it doesn’t charge you anything when you close them (anytime) even after you’ve earned the ‘bonus’ interest rate, say after the 4-month period. This information is typically mentioned in the terms and conditions of the account, so best to check it out.

      Hope this helps.

      Cheers,
      May

  5. Default Gravatar
    CraigNovember 20, 2018

    What’s the best account for me. I will deposit $700 per month $175 per week and leave it alone for 12 months.

    • Avatarfinder Customer Care
      JohnNovember 20, 2018Staff

      Hi Craig,

      Thank you for reaching out to finder.

      You may visit this link to see a panel of banks as well as the interest rate for each on a 12 month term deposit. Kindly review and compare your options on the table displaying the available providers. Once you have chosen a particular provider, you may then click on the “Go to site” button and you will be redirected to the provider’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have. Hope this helps!

      Cheers,
      Reggie

  6. Default Gravatar
    RBOctober 13, 2018

    Which savings bank accounts are open to those applying for Australian citizenship?

    • Avatarfinder Customer Care
      JeniOctober 13, 2018Staff

      Hi RB,

      Thank you for getting in touch with finder.

      On this page that you’re viewing, you need first to choose from the drop-down menu on what you’re looking for a savings account like high interest, everyday savings etc. Once you have chosen, click on “More” of your chosen bank then you may check the residency requirement on the “How to apply” tab of the review page. Most Australian banks would ask for your Australian residential address rather than your residency status in order to be eligible for a savings account with them. You may also see your other savings account options on this PAGE.

      I hope this helps.

      Please feel free to reach out to us if you have any other enquiries.

      Thank you and have a wonderful day!

      Cheers,
      Jeni

  7. Default Gravatar
    harimauOctober 18, 2017

    I want to open a savings account with another bank other than Westpac (closed today because of bad service), have a bank cheque), to have DEFT and other payments deducted. Commonwealth? St George? Bank West? ANZ? Bendigo Bank?

    • Avatarfinder Customer Care
      JudithOctober 19, 2017Staff

      Hi Harimau,

      Thanks for contacting finder, a comparison website and general information service.

      Since we are a comparison website and can’t recommend a specific savings account to you, the best thing to do is to check your options that would best suit your needs.

      I can see that you are viewing this page for high interest savings accounts. When choosing a high interest savings account, you may need to factor in which type are you needing. Would you be needing a savings account with a bonus rate or would you be needing one with introductory rate?

      For a list of options for bonus savers accounts, you may check this page.

      On the other hand, you may check this page for a list of introductory savings accounts.

      I hope this helps.

      Best regards,
      Judith

  8. Default Gravatar
    SamSeptember 29, 2017

    Hi there – are there any savings accounts available for immigrants living in Australia on 457 (Temporary Skilled Work) Visas? I have a TFN, and my permanent residency application is in process.

    Many thanks,
    Sam

    • Default Gravatar
      ArnoldSeptember 30, 2017

      Hi Sam,

      Thanks for your inquiry

      Many banks have migrant services to help facilitate the process of opening a bank account in Australia. You can find more about this here. Charges will be dependent on what type of account you open with each bank. Please contact the bank directly to discuss the best account for your situation.

      Hope this information helps

      Cheers,
      Arnold

  9. Default Gravatar
    ZdravkoJuly 1, 2017

    Bank of Melbourne is advertising 3% on Maxi Saver yet mums only getting 2.75% and me worse 2.55%.

    • Default Gravatar
      JonathanJuly 1, 2017

      Hi Zdravko!

      The bonus 2% introductory offer is only for the first 3 months from account opening and is subject to tax and other changes imposed by the bank.

      You may want to verify this with the bank directly.

      Hope this helps.

      Cheers,
      Jonathan

  10. Default Gravatar
    robertMay 28, 2017

    My partner and i are wanting to start a joint savings account for mostly travelling. We are going to be depositing 800 per month and our first withdrawal will be mid October. Am wanting to know what bonus saving account would be best.
    Thankyou
    Robert

    • Avatarfinder Customer Care
      DeeMay 28, 2017Staff

      Hi Robert,

      Thanks for your question.

      You may check this page to compare bonus savings account.

      Given that you will deposit $800 per month and you’ll withdraw on October, the savings account that can give you high interest earnings are: Bankwest Hero Saver, ME Online Savings Account and Bank Australia Bonus Saver Account.

      You may take advantage of the savings calculator on the page to see how much interest you’ll earn per account if you have an initial deposit or if you want a longer term.

      Cheers,
      Anndy

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