Pensioner bank accounts are for Australians over the age of 55 who are retired, or anyone receiving an eligible government pension. You can deposit your pension and other income into a pensioner account.
These accounts typically let you earn interest on your money, have minimal fees and offer easy access to your money.
It's worth comparing pensioner bank account options because some banks offer very low interest rates, while others are more competitive.
If you're not receiving a pension, take a look at an everyday bank account for your daily spending instead. To earn more interest, consider a high interest savings account.
These accounts are for:
You may be able to open a pensioner account from the age of 18, depending on what government payment you receive.
Eligible pensions include government pensions from Centrelink or the Department of Veteran's Affairs, such as:
Banks have different eligibility requirements too, so check the bank's website carefully before applying.
Pensioner bank accounts look like fairly typical bank accounts for your everyday spending. You can deposit money in them, including pension income, and spend it via a debit card, ATM withdrawal, online payment or other means.
These accounts typically have no monthly fee. Where pensioner accounts differ from most transaction accounts is that you can earn some interest on the money in your account.
Pensioner bank accounts normally have a tiered interest rate structure. So the more money in your account, the higher your interest rate will be. For example, if you have less than $50,000 in your account, your interest may be 0.50% p.a., however this can go up to 1% or higher depending on how large your balance is.
But pensioner accounts don't offer the most competitive interest rates on the market. Right now, most pensioner accounts offer between 0.50% and 3.50%.
High interest savings accounts offer higher rates, but you need to meet more conditions like depositing a certain amount each month, or making no withdrawals. Customers who are only receiving pension income may struggle to meet these conditions.
The best bank account for any customer depends on their financial goals and life circumstances. A pensioner bank account suits someone who:
To make sure you're getting a good deal with your bank, compare the following features and options:
You can earn a really impressive ongoing bonus rate of 5.55% p.a., however you need to deposit $2,000 per month.
Earn 5% p.a. for the first 4 months with no deposit conditions to meet, then an ongoing rate on your entire balance.
Earn an ongoing bonus rate when you deposit $100 a month and make no withdrawals.
The Bankwest Easy Saver account offers a bonus rate for the first 4 months, then an ongoing standard variable rate with no conditions to meet.
The Bank of Queensland Simple Saver Account offers an ongoing interest rate with no account conditions to meet. Open up to 9 accounts.
The Bank of Queensland Future Saver Account has a high ongoing bonus rate on balances up to $50,000 for customers under 35.
The Rabobank Notice Saver (60 days) rewards you with a competitive interest rate for agreeing to give 60 days notice before withdrawing your funds.
The People’s Choice Credit Union could provide you with the same savings opportunities as the big banks, with terms that you can live with.
The Bank of Melbourne Investment cash Account has no monthly fees. This account is a cash hub to help you manage your investments. Read our review and apply online.
Rabobank PremiumSaver account is an option worth considering for savers looking to boost their savings balance, offering no ongoing fees, a competitive variable rate and 24/7 online access to your funds.