- Maximum rate: 5.5% p.a.
- Standard variable rate: 0.05%
- Monthly fees: $0
Who has the highest savings rates in May 2024?
Despite savings rates rising last year, many Australians are still getting a poor rate on their savings.
The average rate across all savings accounts in Finder's database is 2.75%. But you can get a rate as high as 5.75% with one of the best accounts.
5 highest savings rates right now
- Rabobank High Interest Savings account offers 5.75% for the first 4 months only.
- ME Bank HomeME Savings Account offers 5.55% when you deposit $2,000 and grow your balance each month.
- MOVE Bank Growth Saver offers 5.5% when you grow your balance by $200+ per month and make no withdrawals.
- ING Savings Maximiser offers 5.5% when you link to an ING Orange Everyday account, deposit $1,000, make 5+ card purchases, and grow your balance each month.
- Bank of Queensland Future Saver Account (14-35 year olds) lets savers earn a maximum rate of 5.5%. As the name suggests, you need to be aged between 14 and 35 to open this account. You'll also need to deposit $1,000 a month to get the maximum rate.
What is a high interest savings account?
A high interest savings account is designed for people who want to build up their savings while earning more interest than a standard bank account.
Savings accounts don't usually come with a debit card because they're not designed for everyday spending. That's what a transaction account is for.
Key things to know about high interest savings accounts
- Account conditions. Many banks offer a bonus interest rate if savers meet certain conditions, like depositing $1,000 each month or growing your balance.
- Bonus interest rates. Most high interest savings accounts only really give you a high rate if you meet the conditions. This bonus rate is added to the base or standard rate.
- Ongoing versus introductory interest rates. Most accounts offer an ongoing rate. As long as you meet the criteria, you'll earn that rate each month. Introductory savings rates are often very high, but only last a few months. Then you drop to a lower rate.
Deposits guaranteed up to $250,000
In Australia, money in a savings account with your bank is protected by the Financial Claims Scheme. In the very unlikely event that your bank collapsed, money in your account is guaranteed up to $250,000.
Types of savings accounts
- Personal savings accounts. Standard accounts for personal use. These have the highest interest rates.
- Kids savings accounts. Accounts designed to help children build up their savings and learn about money. These accounts have age limits up to 17.
- Student savings accounts. Accounts aimed at teens and young adults.
- Business savings accounts. Savings accounts for business customers to earn interest on business funds.
How to compare high interest savings accounts
Find an account with a high interest rate
For any saver, the higher the rate the better. Right now, many banks offer savings account interest rates above 5%.
But there's a little more to it. Banks break savings rates into 3 parts:
- The standard variable interest rate. This is the base or default rate you get before any bonus rate comes into effect. It's often very low.
- The bonus interest rate. If you meet all the account's conditions you'll qualify for the bonus rate. This is added to the standard rate.
- The maximum savings rate. When you combine the standard and bonus rates, the total is considered the maximum savings rate. Your goal is to earn this rate on your savings each month.
Example: deciphering your savings rate
Let's say your bank is offering a high interest savings account with the following rates:
- 2.5% standard variable rate.
- 3.0% bonus rate.
- 5.5% maximum variable rate.
If you meet the bonus conditions each month you'll earn the maximum variable rate of 5.5%. If you don't meet the account conditions, you'll only earn the standard rate of 2.5%.
Check the account conditions (and make sure you can meet them)
- Deposit requirements. Many accounts require you to save a set amount each month, typically between $1,000 and $2,000.
- Grow your balance. You may need to end the month with more money in the account than at the start. This means you can withdraw some money, but you must deposit more than you withdraw.
- Withdrawals. Some accounts specify that you make no withdrawals in a month in order to earn the bonus interest.
- Transaction requirements. Some high interest savings accounts require you to make a number of transactions each month. This is usually a requirement to spend money using a linked transaction account.
- Balance limits or tiers. Many banks limit the bonus interest you can earn based on your account balance. You may earn 5.3% on balances up to $250,000, and only earn 2.00% on any money beyond $250,000.
A savings account with a high rate isn't very helpful if you can't meet the account conditions.
If you're only able to save $800 a month, then you don't want an account that requires you to deposit $2,000 each month to get the maximum interest rate.
Understand how savings account rates impact how much interest you earn
Most banks calculate interest on your savings daily and pay it to you monthly. If you have an ongoing rate, that's what you'll earn each month if you meet all the conditions.
If you have an introductory rate, your rate will decrease after the introductory period.
If you have a decent amount of money to deposit, a high introductory rate can sometimes beat a competitive ongoing rate. Here are some examples using some of the highest savings rates in the market (ongoing and introductory) over 12 months.
Savings account | Maximum interest rate | Standard variable rate | Intro period | Interest earned in 12 months |
---|---|---|---|---|
5.75% | 4.40% | 4 months | $2,367.46 | |
Me HomeMe Savings Account | 5.55% | 0.55% | Ongoing | $2,312.48 |
ING Savings Maximiser | 5.50% | 0.55% | Ongoing | $2,291.12 |
Macquarie Savings Account | 5.50% | 4.75% | 4 months | $2,263.18 |
We've used a deposit size of $40,616, which is the average Australian's savings according to Finder's Consumer Sentiment Tracker. In these examples the slightly higher 4-month introductory rate gives you a higher overall interest payment.
Use a savings interest calculator to get a better understanding of how you can earn interest.
What are the best savings accounts?
Finder has surveyed hundreds of Australian bank customers. We know what most Australians want in the ideal savings account: a high interest rate, minimal account fees and no complicated conditions that make it harder to earn interest. Refer to our best savings accounts page to see all the top accounts and refer to the 2023 Finder Banking Satisfaction Awards page to see the banks that customers have voted for great service.
High interest savings accounts: What features do Australians find most important?
Finder surveyed 1113 Australians in January 2024 and asked them which 3 features matter most when choosing a savings account.
My partner and I have been trying to get the absolute most out of our bank account. Our main bank gave us next to nothing. Then we moved to the absolute best ongoing rate, but quickly found there is more to it than that. When a family member needed a loan, we found that we'd lose our monthly interest once we sent them the money because we wouldn't be able to grow the total balance that month. Ubank is a great option because it doesn't require you to grow the balance each month – only to deposit $200 – and still offers one of the best rates on the market.— Taylor Blackburn, personal finance specialist and aspiring Aussie homeowner
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.Frequently asked questions
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