Comparing savings accounts can be a time consuming task, which is why you need to make sure you are doing it properly, you are looking for the right features and you end up with the account which is just right for you. While choosing a savings account may seem to be a much easier decision to make than choosing a home loan, or even a home, your choice can ultimately be just as significant because good savings habits rely on the right tools.

Without the right savings account your finances can be disorganised and unfocused which can mean you are less likely to achieve your goals, and find it hard to stick to a budget. However, when you take the time to compare and understand the different types of savings accounts and what they can do for you, you can put yourself back in control of your finances, rather than being controlled by money.

Comparison of Top Savings Accounts

Savings Account Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Balance/Min Deposit
UBank USaver
UBank USaver		 5.51% 4.91% 0.60% $0 $0 / $0 Enquire
HSBC Serious Saver
HSBC Serious Saver		 5.55% 4.25% 1.30% $0 $0 / $0 Enquire
Citibank Online Saver
Citibank Online Saver		 5.7% 4.25% 1.45% $0 $0 / $0 Enquire
ANZ Online Saver
ANZ Online Saver		 5.5% 3.75% 1.75% $0 $0 / $0 Enquire
St.George Maxi Saver
St.George Maxi Saver		 5.7% 4.30% 1.40% $0 $0 / $0 Enquire
Easy Street Bonus Saver Account
Easy Street Bonus Saver Account		 5.61% 0.01% 5.60% $0 $0 / $0 Enquire
NAB iSaver
NAB iSaver		 5% 3.65% 1.35% $0 $0 / $0 Enquire

What are the benefits of comparing savings accounts?

Everyone has their own spending and savings habits and preferences, that is why there are so many different types of high interest savings accounts. No two people will use their accounts in the same way and whether you are able to contribute the recommended 10% of every pay check each week, or you simply make a deposit when you have collected your spare change, even the smallest contributions can lead to big things with the right account.

The interest you can earn on a savings account is one important factor to compare, because while the average interest rate on a high interest online savings account is 6% there are accounts on offer with rates as low as two or three percent interest and if you fail to shop around, you could be cutting your interest earnings in half before you’ve even begun. This could mean you are losing hundreds of dollars a year in interest and in some cases even thousands of dollars, which is why it is so important to compare savings accounts.

However, the interest rate is not the only feature you need to compare when choosing a savings account, and you should also take the time to consider whether a savings account is actually the right option for your needs. When you use a comprehensive comparison site to help you choose the right account, you will also be able to compare other savings options such as term deposits. A term deposit offers a high interest rate and the security of a cash investment, and guarantees that rate and return over your chosen term, as long as you do not access the account.

If you are looking to compare savings accounts, you’ll need to consider the myriad of features which make up each offer, you’ll need to learn how to see through promotional deals to the real interest rate you’ll earn, and which hoops you’ll have to jump to earn a bonus rate. You’ll also want to make sure your savings are safe by choosing an account provider you know you can trust. In comparing savings accounts you should also be comparing the providers based on their business structure – who they own, or are owned by – as well as their credit rating which is an indication of how responsibly the bank or financial institution is running their business.

What are the alternatives to having a savings account?

When you are evaluating your finances and seeking financial stability and control, it is often best to have your funds spread across more than one account and more than one type of cash investment. There are a number of ways you can invest your cash securely, access it when you need to and earn a high yield, all depending on your needs and goals.

When choosing savings investments, consider:

  • Having several savings accounts. While many high interest savings accounts allow you to allocate sub-accounts for each of your savings goals, you can still benefit from having separate accounts for your long term savings goals, short term savings goals and your emergency fund. You’ll need to access the funds at different times and if you can be rewarded for not touching your long term savings, you don’t want to be penalised when you need emergency funds.
  • Transaction account. With a transaction account you will earn little to no interest if this is where you keep your savings, but you will have instant access online, over the phone, as well as via an ATM or EFTPOS card.
  • A money market account. Depositing into a money market account allows your provider to trade on the money market with your funds, and reward you with higher interest rates than a traditional savings account. However, you will often need a higher opening balance and you may have to wait several days to access funds.
  • Certificate of deposit on a term deposit account. You choose an investment term, often from one month to five years, and a guaranteed interest rate is calculated depending on your provider, your investment amount, your term and your chosen interest income payment schedule. You are unable to withdraw your funds during your term, but they are locked safely away and earning a guaranteed return.
  • A savings bond. Savings bonds are issued by the government and generally have a maturity date of 20 to 30 years. While you cannot access your funds during this time, you are guaranteed a long term investment, and long term interest earnings.

What is the best way to compare savings accounts?

Before you become overwhelmed with all of the checks you need to do on all of the different types of savings accounts, follow these few simple steps which can help you make faster, more accurate and more informed decisions and see you well on your way to a successful savings strategy:

  1. Clarify your savings needs and goals. You can’t find what you need if you don’t know what you’re looking for and you can narrow down the type of account you need by thinking about why you’re saving. For example, if you are saving to build an emergency fund, look for an account which has a long term high interest rate and is easy to access quickly. If you are aiming to encourage your children to save, look for an account which offers a bonus interest rate reward when you make no withdrawals.
  2. Compare interest rates. While the interest rate is not the only feature you should be looking at, it is an important one so shop around for the highest rate over the term you will be saving for. Also make sure you’re not fooled by short term promotional rates when you have a long term savings goal.
  3. Decide how you want to access the account. If you are saving an emergency fund you want easy at call access so look for a savings account from the same provider as your transaction account for instant access. If you know you need to remove temptation, choose and account which can only be accessed online.
  4. Compare the fine print. Before you fall in love with your perfect savings account, make sure that all is as it seems because some savings accounts will have high opening balance requirements, and will also require that you maintain a high ongoing balance to qualify for the high advertised interest rate. Also watch out for withdrawal or transaction fees, or monthly account fees.
  5. Know the different types of interest rates. The standard interest rate on a high interest savings account will be variable, and subject to fluctuations in the economy, and your provider’s own interest rate decisions. You can also lose out on tiered interest if your balance drops, and miss out on a promotional interest rate all together if you don’t double check the offers again on the day you apply.
  6. Compare the specials. When it comes to high interest savings accounts, sometimes when it seems too good to be true – it is! The banks want to attract your business and your savings deposits as it strengthens their business, and they’re willing to offer very competitive interest rates to grab your attention. Therefore, if you’ve compared all of the features and fine print on an attractive account offer, go for it.

How to use a savings account?

After taking the time to shop around for the best features and the best account, you want to make sure you are getting the best from your choice. Therefore, to start off and stick to a successful savings plan with your new account:

  • Choose short and long term savings goals. When you start thinking about your financial future and planning your savings goals you will probably be inspired to start budgeting and saving for all of your bills and expenses too, not just the emergencies. Therefore, set aside a portion of your budget for immediate costs such as the groceries, mortgage and the phone bills, then look at those costs which come quarterly such as school fees, power bills and car insurance. Then budget for longer term savings such as your yearly health insurance premium for example, and the amounts you have left can start going towards your savings goals.
  • Create a working budget. You can find all of the information about your short and long term bills and expenses quickly and easily when you have a working budget. To create an accurate budget, list your weekly expenses including all of the essentials as well as clothing and recreational money. Then enter your weekly income and you have the start of your budget. To see where you can save money, divide your expenses into three columns, fixed, variable and flexible. Fixed expenses are your car repayments or your mortgage, variable expenses change from month to month and could be your food bills or power bill and flexible expenses are those which are your luxuries such as entertainment or alcohol.
  • Don’t forget to use your savings account. Often in the application for a savings account you can set up a regular savings plan where you enter the account details of your transaction account and pick a start date, a frequency and amount to have transferred to your savings every pay day. While many experts recommend 10% of your wage should be saved, choose a number you are comfortable with, and your savings will grow automatically.
  • Deposit any extra funds into your savings account. If you get a bonus or a pay rise at work, divert that extra amount into your savings and give yourself a real bonus. If you get a healthy tax refund or extra income from a second job, get into the habit of saving it right away.
  • Make sure you‘re earning interest not paying interest. If you have a credit card balance which is accruing interest, that interest rate is likely to be much higher than the interest you are earning on your savings. Therefore, instead of having your interest savings being cancelled out by the interest you pay on a credit card, pay off your debts as soon as you can before starting to save. Plus, when you have healthy savings, you will find you have little need for spending on credit anyway. Similarly look for a car loan with a low interest rate, or a home loan which is linked to an offset savings account which also allows you to save on interest charges.

When you are comparing savings accounts you should make sure you are searching by the features which are the most important to you. For example, you can narrow down your search if you have a short term savings goal by searching for savings accounts which have a bonus promotional interest rate to see you achieve your goal sooner. Alternatively if you are looking for a long term savings plan, you will want to compare no fee savings accounts, and if you want to start teaching your children sound savings habits get them familiar with the banking system by choosing a savings account which allows them to visit a branch to make a deposit fee free.

Or, if you are still considering the type of savings account which will best suit your needs, start a savings account comparison now.



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