High interest savings accounts Australia

What is a high interest savings account?

A high interest savings account is like a regular savings account, but with a better (higher!) interest rate. To earn the high interest rate you usually have to meet some monthly conditions. This could include depositing a certain amount of money, restricting withdrawals and growing your balance.

Key things to know about high interest savings accounts

• Account conditions. Many banks offer a higher interest rate if you meet certain conditions, like depositing $1,000 each month or growing your balance.
• Bonus interest rates. Most high interest savings accounts only give you a high rate if you meet the conditions. This bonus rate is added to the base or standard rate and if you don't meet the conditions, you don't earn much interest.
• 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 high interest savings account with many banks is protected by the Financial Claims Scheme. In the unlikely event that your bank fails, money in your account is guaranteed up to $250,000.

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 4.5%.

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 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.

Check the account conditions (and make sure you can meet them)

• Deposit requirements. Many accounts require you to deposit 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.
• Withdrawals. Some accounts specify that you make no withdrawals in a month 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. For instance, you may earn 5.0% p.a. on balances up to $250,000, and only earn 2.00% p.a. on any money beyond $250,000.

A savings account with a high rate isn't helpful if you can't meet the account conditions. The best savings account for you is one with conditions you can meet each month.

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. Instead, you're better off choosing an account with a slightly lower rate and conditions you can actually meet each month.

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.

High interest savings rate vs regular savings rate

It might not seem like much of a difference, but a higher rate can help you save a lot more money thanks to the power of compound interest.

In the below example, we've used an initial deposit size of $43,494, which is the average Australian's savings according to Finder's Consumer Sentiment Tracker, and assumed ongoing monthly deposits of $1,000.

After just 12 months you'd be over $1,000 better off by simply opting for an account with a higher interest rate.

Use a savings interest calculator to get a better understanding of how you can earn interest.

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 $500 – and still offers one of the best rates on the market."

Taylor Blackburn

Money Expert

Frequently asked questions

• What is the best high interest savings account?

  The high interest savings account with the highest interest rate at the moment is Ubank Save which offers 5.1%. This is an intro rate for the first 4 months only.

  The best ongoing savings rate at the moment is 5% with westpac Life (when you meet the conditions).

  However, the best high interest savings account for you will depend on what conditions you can meet.

• What determines the interest rate for a savings account?

  A bank typically sets savings rates based on these factors:

  • The Reserve Bank's cash rate target. This rate affects banks' short-term borrowing costs and is a benchmark for savings accounts, home loans and more. The RBA has cut the cash rtwice this year already, which caused savings account rates to be cut too.
  • Competition. Banks are competing with each other and rarely set savings rates much higher or lower than competitors.
  • Strategy. If a bank wants to attract more customer deposits it may increase savings rates and market its accounts more aggressively.

• How do the banks calculate the interest for my savings account?

  Banks typically calculate interest daily and pay it out monthly. At the end of the day, interest is calculated based on the closing balance.

  Interest in your savings account compounds, meaning that the interest you earn in one month is added to your account's funds. Then you earn interest based on the total amount of funds in the account, including the previous month's interest.

  Interest can be compounded daily, monthly or annually.

• Should I declare the interest earned on my tax return?

  Yes. Any interest you earn counts as income and is taxed at the same rate as your salary. You must include it when doing your tax return.

• Are there fees on a savings account?

  No bank account is completely free from fees. But many high interest savings accounts have no monthly account keeping fee or upfront application fee.

• Who are high interest savings accounts best suited for?

  • Do you want to build up your savings while earning interest?
  • Do you have a regular income that you can set aside each month?
  • Do you want to grow your savings rather than spend it, but still need to be able to access the money just in case?

  If this is you, then a high interest savings account is worth considering.

  These accounts are less suitable if you:

  • Need a flexible bank account for everyday spending. You'd be better off using a transaction account.
  • Want to put aside a chunk of money, earn interest and forget all about it. You could look at a term deposit instead.
  • Want to see a strong return on your money and have an appetite for risk. You could consider investing instead.

• Will savings rates continue to fall?

  The RBA cut the cash rate 3 times in 2025, causing savings rates to fall. However with inflation going up, we may even see some cash rate increases in 2026.

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

  With a term deposit you put the money away and don't touch it for months or even years. There are no other conditions.

  With a savings account you have to make regular deposits if you want the maximum interest rate. But if you need the money in a hurry it's easier to access.

  Term deposits and high interest savings accounts have similar rates at the moment. In fact, the best savings accounts actually offer slightly higher interest rates right now.

• 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:

  Westpac Life Account: 4.25%

  NAB Reward Saver Account: 4.15%

  Commonwealth Bank Goal Saver Account: 4.25%

  ANZ Save Account: 4.25%

• Do high interest savings accounts come with a debit card?

  Savings accounts don't come with a debit card because they're not designed for everyday spending. That's what a transaction account is for.

To make sure you get accurate and helpful information, this guide has been edited by Jason Loewenthal and reviewed by Serina Bird, a member of Finder's Editorial Review Board.

Written by

Alison Banney

Editorial Manager, Money

Alison is an editor at Finder and a personal finance journalist with over 10 years of experience, having contributed to major financial institutions and publications such as Westpac, Money Magazine, and Yahoo Finance. She is frequently quoted in media outlets like SmartCompany and SBS, offering expert insights on superannuation and money management. Alison holds a Bachelor of Communications in Public Relations and Journalism from the University of Newcastle, and has earned three ASIC RG146 certifications in superannuation, securities and managed investments and general financial advice, ensuring her expertise is fully aligned with ASIC standards. See full bio

Alison's expertise

Alison has written 658 Finder guides across topics including:

• Superannuation
• Savings accounts, bank accounts and term deposits
• Budgeting and money-saving hacks
• Managing the cost of living