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High interest savings account offer
RaboDirect High Interest Savings Account
max rate
standard variable rate
High interest savings account offer
Introductory rate of 3.05% p.a. for 4 months, reverting to a rate of 1.80% p.a. Available on balances below $250,000
- Maximum Rate: 3.05% p.a.
- Standard Variable Rate: 1.80% p.a.
- Introductory period: 4 months
- Monthly fees: $0.00
Comparison of high interest rate savings accounts
Top six high interest savings account by interest rate
- RaboDirect High Interest Savings Account - 3.05%
- RAMS Saver Account - 3.00%
- HSBC Serious Saver Account - 3.00%
- Bank of Queensland WebSavings Account - 2.90%
- ME Online Savings Account - 2.85%
- Citibank Online Saver - 2.85%
- ING Savings Maximiser - 2.80%
How to choose a savings account on finder.com.au
Use your savings style as a guide for getting to your savings goal. Each savings account has different terms and conditions, so take the time to find out what they are. This can affect how quickly or slowly you reach your financial goals.
Compare highest interest savings accounts
| High interest savings account | Do I need a linked bank account? | Maximum variable rate (p.a.) |
|---|---|---|
| RaboDirect High Interest Savings Account (Variable intro rate of 3.05% for 4 months) | Any bank | 3.05% |
| RAMS Saver Account (Base rate 1.35% p.a. + Bonus rate 1.65% p.a. on balances up to $20,000) | Not required | 3.00% |
| St.George Maxi Saver (Variable intro rate of 2.85% for 3 months) | Same bank | 2.85% |
| ME Online Savings Account (Base rate 1.30% + Bonus rate 1.55% when you link to a ME Everyday account and make a weekly tap & go purchase, on balances up to $250,000) | Same bank | 2.85% |
| Citibank Online Saver (Variable intro rate of 2.85% for 4 months) | Any bank | 2.85% |
| ANZ Online Saver (Variable intro rate of 2.55% for 3 months) | Same bank | 2.55% |
| UBank USaver (Base rate 2.87% + Bonus rate 1.06% p.a. on balance up to $5,000,000) | Same bank | 2.87% |
High interest savings account
A high interest savings account (also known as a savings account or online savings account) is an account that offers a competitive interest rate. It is similar to a bank account, but it is designed to help you save money, rather than spend money. Typically, interest is compound interest that is calculated daily and paid monthly. All savings accounts come with a free, 24/7 online banking platform to access your funds.
What are the benefits of a high interest savings account?
- You don't need to know anything about finance.
Compared to other investments, such as shares and property, a savings account is probably the easiest one to apply for. You can always reinvest what you have deposited there into another asset and it's almost impossible to get a negative return on a savings account.
- You don't need to take any risks.
It's considered one of the safest investments in the financial system (next to a term deposit). Most banks and financial institutions are guaranteed by the Australian government, which means eligible deposits are insured up to $250,000 per person, per institution. If you have more than $250,000, it's important to diversify your funds across different banks to take advantage of the guarantee.
- You're buying time to learn.
It's a stepping stone for learning how to invest in shares and other investments – you can leave the money there until you're comfortable enough to understand how other assets work.
- You can see results fairly quickly.
You can see progress after just a few months by quickly earning a few dollars.
How do high interest savings accounts work?
You generally link a high interest savings account to your bank account. This allows for the easy transfer of funds back and forth. In some cases, you can only link your savings account to another account within the same bank. A savings account also gives you at-call access to your funds, which means you can access your money almost immediately.
The interest rate is calculated on your balance every day and your interest is paid monthly. The following is the formula your bank will usually use to calculate your daily interest:
Hack: How do I always get the highest interest rate?
A lot of high interest savings accounts offer bonus introductory rates for the first few months only. For example, an account may offer a higher interest rate of say 3.00% for the first three months, which will drop down to the standard variable interest rate after this time which could be much lower.
To ensure you are always earning the highest rate, you could continually switch savings accounts after the introductory period ends. However, keep in mind that you typically can only earn the bonus introductory interest on your first account with that bank.
How do I find the best high interest savings account for me?
- Look for: High and competitive interest rates
Make sure you know the difference between the standard rate and any introductory rate that the bank may be offering. Also, pay attention to the conditions required to earn bonus interest. The offer may only apply to new customers or you may need to meet deposit and withdrawal conditions.
- Look for: Online flexibility with 24/7 access
If you're trying to stop yourself from dipping into your savings, then consider an account with limited or no accessibility. Term deposits offer you a higher rate of interest the longer you agree to keep your money inside. The catch is that you won’t have access to your savings for the duration of the term, unless you want to pay a hefty penalty.
- Consider: Going online
Aussies who are willing to manage their savings entirely online could benefit from an online high interest savings account. Since these accounts require less overhead costs, customers are rewarded with a higher rate of interest.
- Look for: Whether you can link your existing bank account or need to open another account.
Some high interest savings accounts need to be linked to a transaction account. Banks dictate whether the account needs to be from the same institution or if it can be from a different bank. If you already have a transaction account at a different bank, check to see if you can link it to your high interest savings account. Otherwise, you may be forced to pay another monthly fee for a bank account you don’t need.
- Look for: Zero fees
Check for any fees charged for maintaining the account, it’s common for savings accounts to not have monthly fees.
- Identify: Whether you're a regular saver or flexible saver
If you're a regular saver, consider opening a bonus saver account. This way, you'll get the maximum amount of interest every month. Flexible savers may want to opt for an introductory bonus account so they get the bonus interest rate no matter how many withdrawals they make.
Should I switch savings accounts?
Yearly Interest ($) | Switch benefit ($)(7% vs 0.01%) | ||||
|---|---|---|---|---|---|
| Your balance ($) | at 0.01% | at 2.5% | at 5% | at 7% | |
| 1000 | 0.10 | 25.29 | 51.16 | 72.79 | 72.69 |
| 5000 | 0.50 | 126.44 | 255.81 | 361.45 | 360.95 |
| 10,000 | 1.00 | 252.88 | 511.62 | 722.90 | 721.90 |
| 25,000 | 2.50 | 632.21 | 1279.05 | 1807.25 | 1804.75 |
This table shows interest that is calculated daily and paid monthly. It doesn’t take into account any other deposits made into your account; if you make additional deposits, you will accumulate more interest in the long term.
Not only can you earn money by switching to a high interest savings account, you can also save money. If you have money sitting in a low interest everyday transaction account that has banking and transaction fees, it could turn out that you are actually losing money.
With so many different high interest savings accounts available online, there's no excuse not to take advantage of one. The more you deposit into a high interest savings account, the more interest you will earn on those deposits over the long term.
What types of high interest savings account are available?
There are different types of accounts depending on the purpose of the account.
If you’re self-employed or a business owner, you may be better off with a business account
Business savings accounts mean that you can separate your work and personal expenses, so it’s easier to collate your expenses at tax time. Also, most banks charge a fee for depositing cheques. If you still deposit a lot of cheques with small amounts, you may want to consider switching to electronic payments as they tend to be free.
If you’re sharing finances, a joint account may be easier
Joint savings accounts mean that two signatures are required to make withdrawals. This can help partners and couples reach a savings goal together. Read more about joint accounts here.
If you want to teach your children good money habits, you can set up a children’s savings account
Most banks offer competitive deals for children’s accounts, including bonus interest rates for regular deposits and no withdrawals as well as no account-keeping fee. Online accounts tend to pay a higher interest rate and charge fewer fees, catering to pocket-money savers gradually growing their balance over time.
The advantages and disadvantages of a savings account
Advantages
- You can reach your savings goals quicker. If you apply for a high interest savings account that matches your savings style, you can reach your savings goal faster.
- You can take advantage of introductory bonus rates for a new account. Some high interest savings accounts will give you a bonus interest rate for a limited time. This is typically a variable rate on top of another variable standard rate. If you switch accounts regularly to take advantage of these offers, you could be giving your savings a big boost.
- They usually charge little to no fees. The majority of high interest savings accounts don't charge any fees for maintaining the account.
Disadvantages
- High balances tend to earn a lower rate. Many accounts work on a tiered interest rate structure, which means that the more you have in your account, the lower the standard variable rate.
- Transfer times can take up to three business days. The limited access, especially for online accounts, could prove troublesome if you suddenly need the money for an important purchase. Transfers could take up to three business days.
What’s the difference between a savings account and a term deposit?
High interest savings accounts offer competitive rates, but conditions apply in most cases. For example, you might need to deposit a certain amount every month and not make any withdrawals. Introductory bonuses also only last a few months.
Term deposits offer good interest rates over a fixed term of between 7 days and 12 months. There is usually a minimum deposit required and although term deposits can be broken, a hefty penalty usually applies.
Traps to avoid when using your high interest savings account
It's important that you choose the high interest savings account that best serves your needs. This can help you avoid the following scenarios:
Interest rate penalties apply if you don't meet the terms and conditions.
- With term deposits, it's important to choose the right term duration. If you choose terms that are too long and find yourself needing the money sooner, you'll have to pay a penalty to have your term deposit released early.
Variable interest rates could mean that you lose out when the cash rate decreases.
- Banks can lower their rates in response to many factors. Bonus introductory rates are usually withdrawn after a few months, or at the end the introductory period. If the rate on your account has changed and you're not sure why, contact the bank.
How do I apply for a high interest savings account?
What do I need to apply for a high interest savings account online?
Once you’ve clicked through to the bank's secure application page, you will typically need to provide:
- Your personal details
- Your tax file number and related information
- Details of the account you want to link to your new high interest savings account
Can I open a high interest savings account as a tourist in Australia?
Depending on your visa type, you may be able to open a bank account in Australia. You can learn more about opening a bank account as a non-resident here. You should always compare different migration programs offered by certain lenders. Speak with the financial institution directly about eligibility requirements for opening an account as a temporary visitor.
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Hello! What kind of account would best benefit me on accumulating the most possible interest, if I was to deposit $7000 a month. Taking into account that It would be that amount constantly for lets say 3 years. I would also agree to having conditions, such as not being able to access any of my money at anytime within the 3 year period. Also if there’s a way to get even more bonus interest? Let’s say for example every second/ third month i have to make an extra 50% deposit on the agreed value I signed up for to get more bonus? So basically what I’m looking for is an account that has as many conditions as possible and if you keep meeting them all, your interest just keeps on increasing higher regularly? Thank you in advance for taking the time to answer my questions!
Hi Alikko,
Thanks for reaching out.
If you like to invest your money with a term deposit where you can only access it after 3 years, you can compare your TD options on this page. Term deposits also offer competitive interest rates. If you like to get an idea how much would be your interest earnings at the end of the term, please use the calculator on top of the table where you can enter your initial deposit of $7,000 and number of months which is 36 for 3 years.
If you want an account where you can withdraw at anytime and make monthly deposits, you can compare high savings account above. Usually, these online savings accounts offer variable bonus rates for a certain period with conditions that vary depending on the account. If you like to know and compare the interest earnings on savings accounts, please enter your initial deposit amount, monthly deposit and investment period in to the calculator above the table.
Please review the details, features and the T&Cs of the account before applying and consider the product is right for you.
Hope this helps.
Cheers,
May
I am looking for a high interest savings account with no fees that will handle direct debits. Where do I look?
Hi Steve!
Thanks for your message and for contacting finder.
If you want to take advantage of the maximum interest rate offered by a high-interest savings account, you most likely need to be willing to accept limitations on how you can access your money. Most high-interest savings accounts don’t allow you to set up direct debits or make regular withdrawals, and some even have minimum monthly deposit requirements to encourage you to save.
While this means you may be able to achieve your savings goal in a shorter time frame, it can be inconvenient if you want fast and easy access to your money at all times.
However, there are some bank accounts that allow you to combine the flexibility of a transaction account with the interest-earning ability of a savings account, commonly referred to as interest-earning transaction accounts.
On the page where you’re in, you can compare the savings account as they have little to no fees.
Hope this helps!
Best regards,
Nikki
Why do you not list Australian Unity, which offers 2.8%?
Hi Anthony,
Thank you for reaching out to us.
Please be advised that while we cover a wide range of products, brands and services on our site, we don’t cover each and every product, brand and service on the page so there are other available options for you. If you like to get more information about Australian Unity Active Saver and other Australian Unity products, kindly check this page.
I hope this helps.
Please do not hesitate to reach out to us again if you have additional questions.
Cheers,
Ash
I’m looking for a high interest savings account to set up for my daughter to give her when she is 18 looking at putting around $25 dollars a month into this account. What would you recommend ?
Hi Wade,
Thank you for visiting finder, we are an Australian financial comparison website and general information service. We are unable to make recommendations, we can offer general advise.
You may view this page as this will give you a comparison between kids savings account. You may need to check on the age requirements on these accounts as they can vary. While some accounts are for those up to 18 years of age, the maximum age in some cases is 15 years and 16 years.
Hope this helps,
Joanne
Hi I am looking to put $9000 into a term deposit for 36 months. Am I better to put it all in one term deposit or split it over two high interest term deposit accounts?
Hi Shelley,
Thank you for your comment.
Term deposit rates vary based on the deposit amount, term length, interest rate and fees. So the higher the deposit and the longer the term, the higher the interest you’ll be getting. Please refer to our term deposit calculator to get an estimate of how much you’ll be getting for a deposit of $9000 in 36 months (same with the $3000) too. Seems that you’ll be getting much more if you deposit $9000.
Regards,
Jhezelyn
CUA is a better option?
Hi George,
Thank you for your inquiry.
Unfortunately, we cannot recommend what is best for you. Our company finder.com.au is a financial comparison website and general information service designed to help consumers to make a better decision. Please note we do not represent any company we feature on our pages.
If you like the features of the CUA savings accounts, you may want to consider this options.
– Application. Once you have become a member of CUA you are free to apply for their savings accounts products online.
– Eligibility. Keep in mind that some of the savings accounts offered by CUA are designed for certain age groups. Ensure that you are eligible for the account you are applying for by clicking the age requirement careful.
Meanwhile, aside from CUA, other savings accounts that you can compare in the market are listed above and on this page.
I hope this information has helped.
Cheers,
Harold
ME online savings account is this a 3-4 month offer? what is the ending time for this bonus interest?
Hi Cartwright,
Thanks for your question.
The bonus offer for ME Online Savings Account is ongoing. You will get the variable interest rate of 3.05% p.a. for any calendar month when you link it with an ME Everyday transaction account and during that month you make a weekly purchase with your ETA Debit MasterCard using tap & go.
Cheers,
May
Why doesn’t the NAB Reward Saver appear in the top list for savings accounts? Its at 2.70%
Hi Chris,
Thanks for your question.
Although we cover a wide range of products, providers and services we don’t cover every product, provider or service available in the market so there may be other options available to you. You can read about the NAB Reward Saver here.
Regards,
Clarizza
If I open a high interest rate savings account with a bank that is offering a good introductory rate and switch to another bank once the introductory rate period ends and keep doing that for a while, then can I go back to my first bank and open/re-open a new high interest rate savings account and get the introductory rate again (if on offer)?
In short, can I keep going through the cycle over and over again ad get the introductory rate on offer each time?
Thanks.
Hi Andy,
Thanks for your comment.
The introductory bonus rate attached to some savings accounts often apply only to the first account you open. This means that if you open the same savings account the second or third time around, it’s likely that you won’t get the bonus rate again. However, this is also subject to some exceptions as set by the bank.
I hope this answers your question.
Cheers,
Anndy
With ing,me and citibank, do you need to give your Tax file number.I’m sure that when I applied to 1 of these that they stated that because i was on a pension atn wasn’t needed.
Hi Darren,
Thanks for your question.
This will depend on your personal situation and how much interest you’ll be earning.
You do not have to provide your TFN to open the account, but if you don’t the bank is legally required to deduct tax from any interest earned on the account above a certain threshold.