Top tips for choosing the best savings account

The features to look out for when choosing a savings account.

"An investment in knowledge pays the best interest” Benjamin Franklin said.

Saving money can be easy and rewardable when you follow the tips below,designed to help you choose the right savings account.

A competitive interest rate

Every extra point of interest makes a big difference. With the cash rate in Australia at historic lows, you should try and seek out the savings account with the best interest rate. Keep in mind that some of the advertisements you see on TV or the radio advertise introductory or bonus rates. Bonus rates have certain conditions that you must meet, such as no withdrawals in the month.

Little to no fees

A good savings account should have few or no fees. There are plenty of banks that offer savings accounts that don’t have fees attached. Some banks try and charge maintenance, service and monthly fees. Below are a few examples of fees banks may charge you:

  • Monthly account.
  • Branch deposit.
  • ATM withdrawal.

It’s accessible 24/7

Check to see if the bank you’re with offers an easy-to-access savings account. Having branches and ATMs available throughout Australia with convenience to you should be a factor when considering the best savings account for you. Having access to your account 24/7 online, or over the phone is also another important factor to keep in mind.

No withdrawal limits

Some banks put restrictions on the amount of money you’re able to withdraw. There is a reason for this: this is supposed to be a savings account, not a transaction account. If you’re withdrawing money frequently, a transaction account will help you out. If your bank has withdrawal limits, find another bank because there are plenty of savings accounts provided by banks that don’t have withdrawal limits.

Beware of the bonus trap

When opening a savings account, watch out for the bonus interest rates. These rates are very competitive but only last for a certain time or if you meet the conditions of the account. There’s nothing wrong with opening a bonus savings account but make sure that when the bonus interest runs out, that you still have a competitive interest rate.

Are fixed rate accounts a good idea?

Some savings accounts, usually known as fixed rate bonds or term deposits, have a set interest rate for a period of time. These accounts tend to have a fixed period from 7 days all to way to 5 years. Term deposits tend to have higher interest rates that help you reach your savings goals faster. You do get peace of mind since the interest rate will not change. The rate will not decrease, but it won’t increase either. Choose a fixed rate account if it suits your savings goals. If you aim to save for a short period of time a fixed rate account is one of your choice.

These are the best tips to educate yourself for choosing a savings account that will reach your goals.

Savings Account Offer

RaboDirect High Interest Savings Account

3.05 % p.a.

max rate

1.80 % p.a.

standard variable rate

Savings Account Offer

Maximum variable rate of 3.05% p.a. for 4 months, reverting to a rate of 1.80% p.a. No deposit or withdrawal conditions. 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
Go to site

Do you currently hold one of Australia's top savings accounts?

Rates last updated February 20th, 2019
Name Product Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit Interest Earned Product Description
RaboDirect High Interest Savings Account
$0 / $0
Maximum variable rate of 3.05% p.a. for 4 months, reverting to a rate of 1.80% p.a. No deposit or withdrawal conditions. Available on balances below $250,000
HSBC Serious Saver
$0 / $0
Receive a maximum variable rate of 3.10% p.a. for 4 months, reverting to an ongoing rate of 1.40% p.a. for each month you don't make any withdrawals from the account. Available on balances below $1,000,000.
UBank USaver
$0 / $0
Earn up to 2.87% p.a. by linking your USaver account to a UBank Ultra transaction account and transferring at least $200 per month into either account. This offer is available on balances up to $200,000.
Bankwest Hero Saver
$0 / $0
Ongoing, variable 2.60% p.a. rate when you deposit at least $200 each month and make no withdrawals. Available on balances up to $250,000.
AMP Saver Account
$0 / $0
Introductory rate of 2.55% p.a. for 4 months, reverting to a rate of 2.10% p.a. Available on balances below $5,000,000.
Citibank Online Saver
$0 / $0
Introductory rate of 3.05% p.a. for 4 months, reverting to a rate of 1.70% p.a. Available on balances below $500,000.
AMP Bett3r Account
$0 / $0
With AMP's bundled Bett3r account, get three linked Pay, Spend and Save accounts. Earn a competitive, ongoing rate of up to 2.25% on your Save account balance when you deposit $2,000 into the Pay account each month from a source that is not another AMP Bank account.

Please note: The 2.25% maximum variable rate is earned only on your Save account balance. To calculate interest earned, enter your initial and monthly deposit amounts for the Save account only, not including any money that’ll be in your Spend or Pay account.

Compare up to 4 providers

The latest in banking and investments

Shirley Liu

Shirley Liu is a program manager at finder, formerly the publisher for Banking and Investments. She is passionate about helping people make an informed decision, save money and find the best deal for their needs.

Was this content helpful to you? No  Yes

Related Posts

Get more from Finder

Savings Account Offers

Important Information*

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Ask a question
Go to site