High interest savings accounts Australia

What are the benefits of a high interest savings account?

A high-interest savings account lets you earn a higher maximum bonus interest rate than a standard savings account.

It's a low-risk product provided by authorised deposit-taking institutions (ADIs). Deposits are covered by the Australian Federal Government's bank guarantee of up to $250,000. If the bank collapsed, up to $250,000 of your money would be covered.

Unlike a term deposit, you can access the money at short notice whenever you need it.

Because these accounts offer the best savings rates, there are usually a few conditions you need to meet to earn it. For example, you might be required to deposit a minimum amount each month or limit your withdrawals from the account. A regular savings account, in comparison, will offer a lower interest rate on your balance each month, but there usually won't be account conditions to meet.

Could you be growing your savings more?

The average Aussie had $40,617 in savings in October 2023, according to Finder's Consumer Sentiment Tracker. That's $7,236 more than this time last year. Use our savings calculator to find out how much you could be earning in interest.

Features to look for in a high interest savings account

• Interest rates: Is the high rate for an introductory period only (e.g. for the first 4-5 months)? If it is, will you be happy to change accounts again after this? If not, consider one with a competitive ongoing rate.
• Deposit requirements: If there's a monthly deposit requirement, make sure you can meet it without putting yourself under financial stress. If not, consider an account with a smaller monthly deposit condition.
• No fees: Most banks don't charge a monthly account fee. Make sure the savings account you're looking at doesn't either.
• Access to your money: Some savings accounts allow you to withdraw money a few times each month. Others require notice. If you need regular access to your savings, pick one that has no withdrawal limits.
• Linked account: Some banks require you to link your savings account with a standard transaction account. If you do need to get a bank account with the same bank, make sure it doesn't charge high fees.

What are the interest rates on savings accounts?

You'll notice a few different rates when you compare high interest savings accounts, here's what they mean:

• Base interest rate. This is the minimum rate you'll earn on the account when none of the conditions are met.
• Bonus rate. This is the extra rate you'll earn on top of the standard rate when you meet the account's bonus conditions (e.g.: monthly deposit).
• Maximum or total rate. This is the standard rate plus the bonus rate, and the total interest rate you'll earn when all account conditions are met (this is what you want to be high!).
• Introductory rate. Some accounts offer a special intro rate for a short period, usually 3-5 months, after opening the account. This rate will drop down to the standard rate after the intro period is over.

How do I apply for a high interest savings account?

You can open an account online in a matter of minutes. It's free and easy to do and requires little effort or paperwork. Once you’ve clicked through to the bank's secure application page, you will typically need to provide the following:

• Your personal details such as full name and contact information
• Your tax file number
• Documents to verify your identity and age, like your driver's licence or passport

Once you've finished the application form and the bank has verified your identity, your account will be opened and you'll be able to start transferring money into it and earning interest.

Compare high interest savings accounts

FAQs about high interest savings accounts

• Can you get a 7% interest savings account?

  No Australian bank is currently offering 7% interest on a savings account. The highest rate in Australia is 5.65% p.a.

• Can I get 5% interest on savings?

  Yes. Several banks currently offer 5% interest on savings (correct as of December 2023). Some do even better. With ING Savings Maximiser for example, you can earn 5.5% on your savings balance as long as you make a minimum monthly deposit of $1,000, 5 transactions and grow your balance.

• Which big banks offer the highest interest savings accounts?

  Here are the high interest savings account rates currently on offer with the Big Four banks.

  1. Westpac Life Account: 5%
  2. NAB Reward Saver Account: 5%
  3. Commonwealth Bank Goal Saver Account: 4.9%
  4. ANZ Save Account: 4.9%

• Will I get taxed on the interest I earn?

  Yes, you need to declare the interest you earn on your savings when you lodge your tax return. It's treated as income and taxed at the same rate.

• Should I invest my money in a high interest savings account or term deposit?

  It depends on how much access you'll need to your money. With a savings account, you're able to access the money at short notice whenever you need it. With a term deposit, your money is locked away for the duration of the term length that you select so you can't access it for unexpected expenses.

• Are the introductory savings rates worth it?

  If you find an account with an introductory rate that's higher than the other accounts in the market, it could be worth it. Because you'll only earn the higher intro rate for a few months, it'll usually be more beneficial for larger balances.

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.