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What is a retirement savings account?

Retirement savings accounts are a very low-risk way to save for your retirement. They're a cross between a super fund and a savings account, but very few banks offer them today.

What you need to know about retirement savings accounts

  • You put money in a retirement savings account and earn interest. But you can't access the money until you retire, like superannuation.
  • These accounts are capital guaranteed, meaning you can't lose the money you put there. But returns are lower than super funds.
  • Only a handful of companies still offer retirement savings accounts because most people have super funds now.

Which banks still offer retirement savings accounts?

According to APRA, these banks still offer retirement savings accounts (as of 2024).

BankAccount details
Qudos Bank
  • $0 account fees
  • Withdrawal fee only applies if you make more than 4 withdrawals per year
Defence Bank
  • Term deposit options available
  • Variable rates available
Australian Military Bank
  • Nominal administration fee
  • Term deposit options available
  • Fixed or variable rate options available

Some institutions offer retirement savings accounts but are no longer open to new customers:

  • IMB
  • Heritage and People's Choice Limited
  • Police Financial Services
  • Commonwealth Bank of Australia

Retirement savings account versus super fund

Although they aren't superannuation accounts, retirement savings accounts do fall within superannuation regulations and the tax advantages that come with that.

Access

Like a super fund, you can't access the money in your retirement savings account until you meet a condition of release or reach your preservation age.

Returns

Unlike a super fund, your capital is guaranteed. You earn interest at set rates, which can be fixed or variable.

But a super standard balanced or growth super fund will usually offer far higher returns than a retirement savings account. This is because super funds invest a large portion of your balance into shares, which are high return but also much higher risk.

Fees

You typically don't pay fees on a retirement savings account, unlike a super fund.

What happens when I retire?

When you retire you can access the money in your retirement savings account. Just like a super fund, you access the money as a lump sum or get a regular payment through an account-based pension.

What are the pros and cons of using a retirement savings account?

The pros

  • Less risk. Retirement savings accounts are capital guaranteed, meaning the money you put in the account is protected from any losses.
  • Fixed or variable options. Many retirement savings accounts offer a variable rate option or fixed terms, like a term deposit.
  • Tax advantages. A retirement savings account offers the same tax advantages as a superannuation account. Contributions you make to the account are taxed at a lower rate than your income would be.
  • No fees. Most retirement savings accounts do not charge any joining fees, ongoing account keeping fees, administration fees and commissions.

The cons

  • Hard to find. Retirement savings accounts were introduced as a way to help Australians save for retirement, before everyone had a superannuation account. These accounts are increasingly redundant and rare today.
  • Low returns. These accounts generate much lower returns on your money than other superannuation products. Even a conservative super fund would likely deliver much better returns than a retirement savings account.

What to look for in a retirement savings account

As we said earlier, there are very few retirement savings accounts available today. If you do want to open one, look for the following:

  • Competitive interest rate. A higher rate of interest will help your retirement savings work harder. This is especially true if it's compounded daily. However even with a high interest rate on your retirement savings account, you'll likely earn much better returns with a superannuation fund that is actively investing your balance.
  • No fees. To ensure that every dollar you deposit helps you save for your retirement, you should look for a retirement savings account that changes no account keeping fees and no annual fees.
  • Account access. Your retirement savings account provider should let you view your account details online or via a mobile banking app. Some service providers offer online tools that allow users to search for their lost super, which they can then transfer to their new accounts.

Tips for using a retirement savings account

Read the terms and conditions

Make sure you go through the product disclosure statement (PDS) before signing up for any retirement savings account. The summary page of this document should give you a clear indication of any applicable fees and charges.

Compare against super funds

Before opening a retirement savings account, conduct a thorough super funds comparison to ensure you've found the most suitable account for your needs. Compare the rates on a retirement savings account to the average returns for super funds before deciding.

But keep in mind that super funds also charge fees. And returns aren't guaranteed.

Consider your age

Most Australians who are still in the workforce and are in their 20s, 30s or 40s are still a long way from retirement. If you're in this age group you'll probably already have a super fund and can benefit from the (on average) higher returns. You can also afford to weather any short term downturn because you're years away from retirement.

If you're closer to retirement, the smaller but safer returns of a retirement savings account might be more appealing. It's still worth comparing to super funds with more conservative growth options.

Get expert help

Still confused? Talk to a financial advisor or financial planner about how to best structure your retirement finances.

Alison Banney's headshot
Written by

Editor

Alison Banney is the money editorial manager at Finder. She covers all areas of personal finance, and her areas of expertise are superannuation, banking and saving. She has written about finance for 10 years, having previously worked at Westpac and written for several other major banks and super funds. See full bio

Alison's expertise
Alison has written 634 Finder guides across topics including:
  • Superannuation
  • Savings accounts, bank accounts and term deposits
  • Budgeting and money-saving hacks
  • Managing the cost of living
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Co-written by

Editor

Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio

Richard's expertise
Richard has written 541 Finder guides across topics including:
  • Home loans
  • Property
  • Personal finance
  • Money-saving tips

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12 Responses

    Default Gravatar
    LinneyJuly 10, 2023

    How can a retiree over 80 join and transfer SMSF to Industry Super Fund? There appears to be many rules for retirees over 75.

      AvatarFinder
      AlisonJuly 11, 2023Finder

      Hi Linney,
      You’re correct, the rules around superannuation for those over 75 are quite complex and will vary depending on your personal situation. It’s best to speak with a financial adviser who can offer you personal advice about transferring your super.
      Thanks,
      Alison

    Default Gravatar
    PetraApril 2, 2019

    Which banks/institutes still have retirement savings accounts?

      AvatarFinder
      JohnApril 3, 2019Finder

      Hi Petra,

      Thank you for reaching out to Finder.

      You may refer to our list of savings accounts with compound interest. The page provides a list of banks that may assist you further in saving for your retirement. You can also check our guide about retirement savings accounts to know your other options. Hope this helps!

      Cheers,
      Reggie

    Default Gravatar
    RodoFebruary 12, 2019

    which institutions offer Centrelink compliant Pensioner Deeming Accounts?

      Default Gravatar
      NikkiFebruary 13, 2019

      Hi Rodo,

      Thanks for getting in touch!

      We have a page that shows pensioner deeming accounts. The page has a table you can use to find the account that suits you. Hope this was helpful.

      Best,
      Nikki

    Default Gravatar
    NeilMay 1, 2018

    Can a young worker with part-time employment arrange for Employer contributions to be remitted to a Retirement Savings Account? This would be to save administration costs which otherwise consume all the contributions over a year. If the answer is yes can the balance in the RSA be transferred later to a Super Fund when employment become full time, contributions more meaningful and the need for insurance more of an issue.

      Default Gravatar
      NikkiMay 3, 2018

      Hi Neil,

      Thanks for your message and for visiting Finder.

      To answer your question, – Yes, a young worker with part-time work can start saving for a retirement savings account and later on transfer to a super fund when the employee becomes full time.

      RSA’s are in line with superannuation regulations and their tax advantages. Even your tax-free portion can earn interest, helping you through retirement. Once you’ve met a condition of release, you can organize for your super fund balance to be transferred to a retirement savings account, where you can start drawing down on your fund. A good RSA should ease your transition into retirement and it should provide you with a regular income when you retire.

      Hope this helps! Feel free to message us anytime should you have further questions.

      Cheers,
      Nikki

    Default Gravatar
    JohnJuly 30, 2017

    Apart from a superannuation fund, are there any other options to create a private pension?

      AvatarFinder
      HaroldJuly 31, 2017Finder

      Hi John,

      Thank you for your inquiry.

      Regarding that matter, you may want to check directly with the Australian Government Department of Human Services for your options.

      I hope this information has helped.

      Cheers,
      Harold

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