Methodology: How we choose our top picks
Every month we look at the 140+ savings accounts in our database to determine which are the best offers for a range of different purposes and account types. Specifically, here's how we determine each of our top pick recommendations:
Best savings account overall
This account is chosen as part of our annual Finder Awards. First, we filtered for the accounts in our database that have an ongoing bonus interest rate with no maximum age restriction, and that offered bonus interest on balances up to $100,000 or higher. We then looked at 12 months' worth of rate data, with more weight applied to the most recent quarter, to determine the account with the highest bonus rate for the most amount of time. Any monthly conditions to earn the ongoing bonus rates were presumed to be met.
What we like about ING Savings Maximiser:
- Finder Awards winner. ING Savings Maximiser won the Best Savings Account in this year's Finder Awards. It has consistently had one of the highest rates in the market over the past 12 months, combined with reasonable account conditions to earn the bonus rate.
- Great rate. ING offers one of the highest maximum ongoing variable rates in the market at the moment with 5.5% p.a.
- Ongoing rate. ING's maximum variable rate is ongoing each month you meet the account conditions.
- Reasonable deposit conditions.You need to deposit $1000 per month to earn the bonus rate, which is in line with (or even lower than!) other accounts with similar bonus rates.
- Interest on balances up to $100,000. You can earn the maximum variable rate on balances up to $100,000, which is higher than others in the market with similar rates.
- Linked bank account. The linked ING Orange Everyday Account has no monthly account fees, 5 free Australian ATM transactions a month and no international transaction fees.
Best Big Four bank savings account
What we like about Westpac Life (18-29 year olds only):
- Competitive rate. This account has the highest savings rate offered by the Big Four banks. While some accounts may have slightly higher rates as part of temporary special offers, Westpac's rate is a high ongoing rate.
- Ongoing rate. Westpac Life's savings rate is an ongoing rate. You just need to meet the conditions.
- Reasonable conditions. To get the maximum rate you just need to grow your balance each month and make 5+ eligible debit card purchases.
Best savings account for under 35s
What we like about Bank of Queensland Future Saver:
- Great rate for under 35s. This account offers one of the highest maximum variable rates in the market at the moment with 5.5% p.a. for customers aged 14-35. p.a.
- Ongoing rate. Bank of Queensland's maximum variable rate is ongoing each month you meet the account conditions.
- Make withdrawals. As long as you've deposited $1000 per month, you can make withdrawals while still being eligible for bonus interest.
- Finder Awards winner. This account won the Best Young Adult Savings Account in this year's Finder Awards.
Best savings account for maximum interest
What we like about ME’s HomeME Savings Account:
- Bonus rate is best in market. The HomeME savings account has the market's highest ongoing rate of 5.55% p.a. when the account conditions are met. There's only one rate that's higher, but it only lasts for 4 months.
- Ongoing rate. The maximum variable rate is ongoing each month you meet the account conditions.
- Tiered bonus rate. The maximum bonus rate is available on balances up to $100,000, however balances above this will still earn bonus interest at a slightly lower rate.
Best savings intro rate
What we like about Rabobank High Interest Savings Account:
- Great intro rate. This account offers a high rate of 5.75% p.a. for the first 4 months after opening the account - that's one of the highest rates in the market!
- No conditions for bonus interest. You don't need to meet any monthly deposit conditions or spend requirements to earn the bonus intro rate.
- No ongoing conditions. After the 4-month intro period ends, you'll still earn an ongoing variable rate of 4.4% p.a. with no conditions to meet.
- Interest on large balances. You'll earn the bonus interest rate (then later the base interest rate) on your full balance up to $250,000.
Best youth savings account
What we like about Great Southern Bank Youth eSaver Account:
- Great rate for under 17s. This account currently offers 5.5% p.a. for customers aged under 17.
- Ongoing rate. This maximum variable rate of 5.5% p.a. is available ongoing each month.
- No conditions. There are no monthly deposit conditions to meet to earn interest, so it's an easy account for kids to use.
- Finder Awards Winner. This account won the Best Kid Savings Account in this year's Finder Awards.
What to look for when you compare savings accounts
High interest rate
The higher the interest rate, the more interest you'll earn and the more your balance will grow. This is the most important feature to consider when choosing your account.
No fees
Savings accounts shouldn't charge you any fees. If you're getting charged a fee, know that this is not common and there are plenty of fee-free accounts.
Conditions you can meet
Savings accounts typically have monthly deposit requirements or spend conditions in order to earn the high bonus rate. Make sure you can meet these.
How to find the best savings account
The best savings account for you will depend on your age, financial situation, savings goals and spending habits. Here are a few different hypothetical examples of how you might pick a savings account based on your personal savings style.
You earn a regular income and are able to meet a monthly deposit condition
The best savings account for you will likely be one with the following:
- An ongoing bonus interest rate: Because you earn a regular income and are confident in your ability to save, a savings account with an ongoing, high bonus rate would offer the best rate for you.
- A monthly deposit condition: Usually the accounts with the best bonus rates have a monthly deposit condition, often $1000 per month, which is ideal for people with good savings habits and a regular income.
You have a short-term savings goal
Let's say you want to give your savings a boost for 3-5 months only to help you save for an overseas holiday or another large purchase. Because you're saving for a specific goal in the near future, you aren't planning to keep your cash in the account for too long and you don’t want to have to meet any ongoing monthly conditions.
The best savings account for you will likely be one with the following:
- An introductory bonus interest rate: Accounts with an introductory bonus rate offer a higher rate for the first 3-5 months only, with no conditions to meet.
- A term deposit: A term deposit allows you to lock your money away for a set period of time and earn a fixed return, with no monthly conditions to meet.
You can't commit to a monthly deposit condition
Let's say you don't earn a regular income, or you're currently not in a position to meet a monthly deposit condition. Plus, perhaps you're also prone to dipping into your savings from time to time for impulse purchases or unexpected expenses.
The best savings account for you will likely be one with the following:
- An ongoing bonus interest rate: An account with an ongoing bonus interest rate will give your balance the best chance at growing (just make sure you check the conditions!)
- No (or low) monthly deposit condition: Look for a bonus saver account that doesn't have a monthly deposit condition. Or, look for one that you can comfortably meet (some accounts only ask you to deposit $20 per month).
Why keep your cash in a savings account?
- Savings accounts are safe - your deposit up to $250k is protected by the Australian government
- Savings accounts offer compound interest, so you can earn interest on your interest
- The money in your savings account is quick and easy to access if you ever need it
- Interest rates on savings accounts are going up!
The role of a savings account
People often ask why keep cash in a savings account when shares can offer better long-term returns historically. There are several answers: a savings account offers certainty, security, and acts as a financial safety net. Unlike volatile shares, you won't lose money, and you can quickly access your cash when needed.
Alison Banney
Finder's banking editor
How does a savings account work?
Usually savings accounts are connected to transaction accounts and instead of the money sitting in your bank account, you can transfer it to your savings account and it'll earn interest (if you meet the account conditions, of course). The special thing about savings account interest is it's compound interest, meaning you'll earn interest on your interest.
Is it best to stick with the Big Four or go with a smaller bank?
Wondering which bank is best to open up your savings account with? Chances are you may be thinking of joining the Big Four. We've put together this pros and cons list of the Big Four VS smaller banks to help you make a decision easier.
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How do I open an Australian 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.
FAQs on best savings accounts
Why you can trust Finder's banking experts
We're free
Our comparison tables are completely free to use. We link you directly to the bank's secure application page. On a daily basis we update the rates, fees and conditions of the 200+ accounts on our database.
We're experts
We've researched and rated hundreds of accounts for our Finder Awards. We've published 100+ guides and our in-house experts regularly appear on Sunrise, 7News and SBS News.We're independent
Unlike other comparison sites, we're not owned by a bank or lender. That means our opinions are our own and you can compare nearly every bank account in Australia on Finder.
We're here to help
Since 2015, we’ve helped over 1.3 million Australians find an account. We'll never ask for your personal information. We're here to help you make a decision.More guides on Finder
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Ask a Question
I am 40+ years of age and have a Saver a/c and my other a/cs with a Big 4 bank. The Saver a/c interest rate is less than 2%. Please suggest the best alternative Saver a/c which does not require opening additional a/cs with that bank, nor has minimum transaction requirements.
Hi Allan,
We’re not licenced to provide personalised advice, but we are able to share a number of options with you to review. There are dozens of high interest accounts listed in this table. A return of 2% is very low at the moment, so it’s worth checking the conditions of each of the accounts in this table to see which ones best match your requirements.
Best of luuck!
Hi Alison,
if I have an account with 2 banks of the NAB Group (e.g. Ubank and citibank) do I have separate government guarantee of 250 T$ for both banks or only once for both banks together?
Thanks very much!
Frank
Hi Frank,
The scheme applies per person, per ADI. So in this case, because Citi and Ubank operate under the same ADI (NAB’s ADI), only your first $250,000 is covered under this scheme.
Thanks,
Alison
what are the best investment options for kids below 1yr?
thank you
Hi Vas,
You can see our guide on children’s savings accounts here which may be of interest.
For other investment options, we suggest you speak with a financial adviser who can offer you personal advice based on your situation.
Thanks,
Alison
Hi Alison
I am interested in placing funds into the MyStateBank but the reviews on that bank are appalling. What is your experience or knowledge of this bank’s customer service reputation?
Many thanks
Michael
Hi Michael,
I haven’t used this bank personally so I’m unable to comment on its customer service, and we don’t have any customer reviews of the bank yet, unfortunately.
Thanks,
Alison
Looking to park an amount of over $250000 in an interest bearing account without locking into a fixed term. The funds belong to a SMSF. Can you advise the institutions that accept funds from s super fund and where the best interest rates will come from
Hi Giuseppe,
You can view a range of SMSF bank accounts that pay interest here.
Thanks,
Alison