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

UBank USaver

2.41 % p.a.

max rate

1.35 % p.a.

standard variable rate

Savings Account Offer

Ongoing, variable 2.41% p.a. when you link your USaver account to a UBank Ultra transaction account and transfer at least $200 per month into either account. The linked transaction account has no monthly fees and no international fees. Bonus interest available on balances up to $200,000.

  • Maximum Rate: 2.41% p.a.
  • Standard Variable Rate: 1.35% p.a.
  • Monthly deposit required: $200.00
  • Monthly fees: $0.00
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Do you currently hold one of Australia's top savings accounts?

Rates last updated September 21st, 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
UBank USaver
2019 Winner
UBank USaver
$0 / $0
Ongoing, variable 2.41% p.a. when you link your USaver account to a UBank Ultra transaction account and transfer at least $200 per month into either account. The linked transaction account has no monthly fees and no international fees. Bonus interest available on balances up to $200,000.
Rabobank Online Savings High Interest Savings Account
$0 / $0
Maximum variable rate of 2.75% p.a. for 4 months, reverting to a rate of 1.30% p.a. No deposit or withdrawal conditions. Available on balances below $250,000
AMP Saver Account
$0 / $0
Introductory rate of 2.61% p.a. for 4 months, reverting to a rate of 1.65% p.a. The bonus rate offer is for new AMP Saver customers only, and applies to the first $250,000 deposited.
ME Online Savings Account
$0 / $0
Ongoing, variable 2.35% p.a. rate when you link to a ME Everyday Transaction account and have at least one purchase with your Debit Mastercard using tap & go processed each week. Available on balances up to $250,000.
HSBC Flexi Saver Account
$0 / $0
Ongoing, variable 2.15% p.a. when you grow your balance by $300+ per month. Earn bonus interest even if you make withdrawals during the month. Available on balances up to $5,000,000.
Suncorp Growth Saver Account
$0 / $0
Ongoing, variable 2.05% p.a. when you grow your balance by at least $200 (excluding interest) and make no more than one withdrawal in the month. Available on the entire balance.
Bankwest Hero Saver
$0 / $0
Ongoing, variable 2.10% p.a. rate when you deposit at least $200 each month and make no withdrawals. Available on balances up to $250,000.
MyState Bank Bonus Saver Account
$0 / $0
Ongoing, variable 2.50% p.a. when you deposit at least $20 into the account each month and make five or more Visa Debit card transactions from a linked MyState transaction account.

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