The Finder Score is a simple score out of 10. The higher a savings account's score, the better we think it is for the average customer.
We score each savings account in our database of hundreds based on a data-driven methodology with 2 main criteria: Does the account offer a high interest rate? And is it easy for savers to actually earn that rate?
A bonus saver account is a high interest savings account that rewards you with extra interest when you meet the account conditions. These can also be known as incentive saver accounts or reward saver accounts as they incentivise you to save, and reward you with bonus interest.
They offer a standard interest rate which you'll get ongoing each month regardless, then a bonus interest rate which you'll get when you meet the conditions.
Each bonus savings account will have different conditions to meet, some will be more complex than others. The conditions usually include one or a few of the following:
The conditions to earn bonus interest vary greatly from bank to bank, so it's important to regularly compare savings accounts to ensure you're always getting the best deal.
If you haven't met the conditions for one month, you'll earn the standard or base variable rate instead for that month.
This is usually really low – sometimes even 0% p.a.
For instance, the standard rate could be 0.35% while the bonus rate is 5.2%.
If you don't meet the conditions and you have a balance of $10,000 saved, you'd get $2.90 instead of $43.33.
Yes, every month your conditions reset, so any month you meet the conditions, you'll be able to receive the bonus interest.
If you find you're always failing to meet the conditions, a savings account with no conditions could suit you better and allow you to earn a better interest rate.
"My savings account requires I deposit $1,000 per month to earn the bonus rate. This is easy for me to achieve as I get my monthly salary into this account, so I don't have to think about it.
But if I wasn't earning a regular salary, for example if I was a freelancer, worked casually or a sole trader, I'd consider a savings account with a lower monthly deposit condition instead."
Each bank will offer different bonus interest rates, so look for one that offers a high bonus interest rate. The better the interest rate is, the quicker your balance will grow.
Sometimes the deposit conditions are quite strict, requiring you to deposit high amounts each month in order to earn the bonus interest rate. Others are a lot easier, with some accounts only requiring you to deposit $20 a month. Whatever the conditions are, make sure you're realistic when considering the deposit requirements. If you can't meet the conditions, you won't earn the bonus rate anyway.
Some banks will not allow any withdrawals in the month, while with others, you’re free to make withdrawals as long as you essentially return that money by meeting a monthly growth total. For example, if the goal is to save $200 in a month, and you withdraw $50, you will need to deposit at least $250 into the account before the month finishes in order to qualify for the bonus interest.
Some of these accounts will be accessible only through a linked transaction account with the same bank, while others can be opened as a standalone account. If you do need to link the account to a bank account with the same bank, check that account doesn't charge fees.
Bonus saver accounts will only pay bonus interest on balances of a certain size. Some accounts pay bonus interest on balances up to $50,000, while others pay bonus interest on balances of $250,000 or even more.
There are two types of bonus savings accounts: introductory bonus offers or ongoing bonus offers. With an introductory bonus savings account, the bonus rate is offered for a set period of time after opening the account (usually the first 4 months). There are usually no conditions to meet to earn this bonus rate as it's only available for a limited time. After that, you'll get the standard rate and usually with no monthly conditions to meet.
Ongoing bonus rate accounts instead offer bonus interest ongoing each month that you meet the account conditions. So while there are conditions to meet to earn the bonus interest, you can continue to earn it month after month for as long as you have the account (and meet the conditions!).
Term deposits are another type of savings account, however they're quite different to a bonus saver account. Firstly, your money in a term deposit is locked away for the duration of the term length that you choose, which can be anywhere from 3 months to 5 years. If you want to access the money earlier you'll need to give 31 days notice, and will likely pay a penalty or lose some of your interest. Bonus savings accounts allow you to access your money instantly if you need it. However, depending on the account conditions, you might not qualify for bonus interest that month if you do make a withdrawal.
Another difference is that term deposit rates are fixed, meaning they won't change until your term length ends. Bonus savings accounts have variable rates, meaning they can change at any time. A term deposit is more of a 'set and forget' option that requires very little effort after it's opened, whereas a bonus saver will require you to meet ongoing conditions each month.
Compare Ubank Save and Up Bank Saver accounts. See rates, features, fees and which suits you best.
Want to know whether you can earn more interest with a savings account or a term deposit? Our savings account vs term deposit calculator can help.
You can earn a really impressive ongoing bonus rate of 5.35% p.a., however you need to deposit $2,000 per month.
Here are a few different ways to save money automatically without lifting a finger, including using round up savings apps and tools.
NAB vs Commonwealth Bank: which bank offers the best accounts for Australian savers?
Gift savings accounts are just the beginning for starting kids off on the right track to a secure financial future.
See historical interest rates for savings accounts since January 2012.
International banking transactions can be made easy with the help of a multi currency account. If you find that you are consistently trying to manage currencies other than the Australian dollar, then consider banking your money in this type of account.
Kickstart your savings plan with a high interest savings account.
See some of the best savings accounts in Australia right now with high interest rates and no fees, plus tips to help you find the best savings account for you.
