These days, Australian are more determined to receive the best interest rate on their savings accounts. As a result, the big banks have increased their offers, in an attempt to stop the mass exodus of customers to better value competitors. The power of the Internet, as well as the ability for consumers to increasingly think for themselves and compare competing products, has forced the banks to think twice about they offer.

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
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










Compare the best high interest savings account offers and apply online

As a consumer, online savings accounts typically provider higher interest rates and lower fees. Online savings accounts accomplish this by reducing the overhead required to run a brick-and-mortar banking institution. Savings Account Comparison allows you to compare high interest savings accounts from banks such as Bankwest, HSBC, St George, NAB, and Raboplus.

Have you got the right savings account?

What kind of interest could you be earning?
The benefits of high interest savings accounts

Types of savings accounts

Standard savings accounts
Online accounts
Children’s saving accounts
Cash management accounts
Term deposits
Review: Finding a great high interest savings account

Maximising the return and avoiding the pitfalls – Understanding the fundamentals of high interest savers

1. How is interest calculated?
2. Fixed vs. variable interest rates
3. Access to your money
4. Minimum/maximum balances
5. Caps on maximum interest per month
6. Penalties for withdrawals
7. Penalties for not depositing enough per month
8. The pitfalls of high interest rate introductory periods
9. Fees and charges
Review: What to look for in a great high interest savings account

A comparison of the high interest savings accounts on the market

Making the most of your money

How to get a better interest rate from your current bank
Moving to another bank
How to apply for a high interest savings account online

Have you got the right savings account?

An amazing 81% of Australians are estimated not to know the rate of interest they are currently earning on their savings account. These findings come from a study recently outlined by Money magazine, and they reveal a stunning lack of awareness in the Australian public when it comes to savings accounts interest rates. The vast majority of us do not really understand our current account, or how it stacks up to other savings products available.

Take a second to consider:

Do you know what your current savings account interest rate is?

Do you know how your interest rate shapes up when compared against the best high interest savings accounts?

Do you know how much extra money you could be making in the short and long term with a higher interest savings account?

If you answered ‘no’ to any of these questions, take a look through this guide, it’s designed to educate you about everything you need to know when choosing a savings account, so that you can make an informed decision about where to place your money and how to make the most of it. It also compares a range of savings accounts out there, and the factors that affect how much interest you earn, so that you can find the account that best suits your financial behaviours and goals.

There are literally hundreds of savings products on the market and the chances are that if you look around you will find a better deal. The best thing to do is start shopping around! Don’t just stay with the same bank you’ve had since you were a teenager because it’s convenient. Look around and compare banks to get the best interest rate and account conditions available.

Your money will soon be working smarter for you!

What kind of interest could you be earning?

About 9.9 million Australians underestimate the top interest rate now being paid on savings accounts. You could be losing hundreds of dollars a year by not paying attention to your account and what else is out there. Now is the time to get your money working harder.

It is true that when you open any standard savings account, you will accrue an amount of money in interest. However, with a high interest savings account, you could be receiving a far higher rate of interest and yield per year. Switching to a higher interest rate saver could likely mean more money for you at the end of the day, and that you are able to reach some of your financial targets sooner than you thought possible.

Below is a table which illustrates the amount you could earn in interest, for a number of different financial situations, if you move your money into a high interest saving account.

Displayed is the amount of interest that $1000, $5000, $10,000, and $25,000 would earn each year at different interest rates.

Your balance ($) Yearly Interest ($) at 0.01% Yearly Interest ($) at 2.5% Yearly Interest ($) at 5% Yearly Interest ($) at 7% Switch benefit ($) (7% vs 0.01%)
1000 0.10 25.29 51.16 72.79 72.69
5000 0.50 126.44 255.81 361.45 360.95
10,000 1.00 252.88 511.62 722.90 721.90
25,000 2.50 632.21 1279.05 1807.25 1804.75

NB – This table has been worked out on the basis that interest is calculated daily, received monthly, and you don’t make any withdrawals. It also doesn’t take into account any other deposits placed into your account. If you do make additional deposits into your saver, you will accumulate more interest in the long term.

The benefits of high interest savings accounts

The obvious benefit of a high interest savings account is that it will earn you more interest than you would from a standard savings account. However, high interest savings accounts will also benefit you in a number of other ways as well.
For instance, high interest savings accounts:

  • Are very safe, as the odds of you losing your investment are very small. These accounts are incredibly popular during times of financial instability as they offer a known rate of return.
  • Are considered less volatile than getting into the stock market or buying an investment property.
  • Offer greater access and liquidity for your money than a term deposit, yet provide a competitive rate of return. Any money you put into a term deposit must stay with the bank for the length of the term, and if you need to access it earlier, you will be penalised. High interest savers are more flexible.
  • Are available from a wide range of banks and credit unions-big and small.
  • Have also encouraged some of the bigger, more established banks to improve their offers in an attempt to stem the flow of customers leaving in search of higher rates.
  • Could save you money. Your everyday transaction account, that pays low interest and charges account-keeping and transaction fees, could actually be losing you money.
  • Protect your money. Imagine if you kept your savings under your mattress, inside a box, or in your wallet. Undoubtedly, it would be prone to several untoward incidents like fire or robbery. While a bank is not exempted from these incidents, should they happen, your bank is responsible to recover your deposited money.
  • Reward you for depositing more money. The bigger the sum of money in your account, the more interest you will earn. Your savings will be making you extra money.

Savings accounts with great rates provide many benefits and can change the way you save. Interested in finding out more about high interest savings accounts and what they could do for you?

Types of savings accounts

There are a range of savings account products on the market, and some offer greater rewards than others, though some have hidden drawbacks. So how do you choose which is best for you?

The best thing you can do for your financial future is to figure out:

  • How much you can afford to put into your savings on a regular basis.
  • Whether you have any goals you are saving towards – such as an overseas holiday, new TV or a lump sum to provide for your child’s education.
  • The period over which you want to save.
  • Where you will be getting the highest and safest return on your investment – is it with your current financial institution or maybe with a different one?

Once you’ve considered these questions, it’s time to scout around for the best savings options and start earning some serious interest. One thing is clear: every financial institution wants your business, and many banks today are offering highly competitive interest rates on savings accounts for customers. It pays to shop around!

Below, a number of savings account products are explained and compared, to help you decide what best suits your financial situation and savings goals.

Standard savings accounts

Traditional savings accounts are still popular but operate under an interest rate layer that starts with a base rate paid. A standard savings account will earn you some interest, but it is likely that the rate won’t be amongst the best you could be receiving with a high interest savings account.

Your standard savings account may offer customer bonuses, but even with these added, the interest rate will still be quite low. Also, if you make a withdrawal or fail to deposit a certain amount per month, you may forfeit the bonus interest. There may be further conditions, such as you won’t be able to withdraw from the account without a notice period. Check the product offer for details of a standard account.

While having your money in a standard savings account is better than keeping it under your mattress, it’s not amongst the most profitable things you could be doing with your money. A good high interest savings account, with fewer fees and restrictions, would be of much greater benefit to you and your savings.

Online accounts

Internet banking is now a standard service for most banks and financial providers. Online accounts are conveniently accessible at any hour of the day or night, even on public holidays. You can access them from your own home, work or wherever in the world you happen to be-so long as you have access to the internet.

When you login to your online saver, you can see all of your account details-such as your current balance, any upcoming bills, credit card balances, scheduled transfers and so on. Online accounts make it very simple to manage your money, and support is always available from your bank if you need assistance.

Online savings accounts often have a higher rate of interest than standard accounts. Online accounts also cost less for banks to manage, and so typically have fewer fees as well. In fact, many online savings accounts have no monthly fees at all, and so the interest that you earn is not eaten up by charges.

Some online accounts will allow you to deposit as much or as little as you’d like in order to open an account. Some will also have no minimum balances and will pay the interest on all your funds regardless of any other factors. Debits and credits will be free to process and there will be no limit on deposits or withdrawal amounts. Check each online account product offer to find out about how the interest will be calculated, and if minimum balances or deposits will affect it.

However, internet savings accounts come with their own restrictions. For instance, you may not be able to get a credit or debit card for your online account, be eligible for overdraft, or branch access. Typically online savers will also not allow you to make ATM withdrawals or pay bills from the account.

Your online saver will have to be linked to a standard daily account. You will have to transfer money from your online account to your transaction account to pay bills or make withdrawals at an ATM. In some cases the transfer of funds is instant, but some accounts will require you to wait anywhere up to a week for the transfer to go through. Investigate your product thoroughly before committing to an online saver that may not suit you.

Opening an internet savings account is simple. You can complete the application online, including giving your tax file number and passing over details of an existing account that the new bank will link to. In some cases the new bank will be able to alert you instantly if your application has been successful.

What are the risks of online accounts?

Some people fear that internet banking is not secure and that others might be able to access their money online. While this is possible, the chances are very low and banks invest a lot of money and energy into preventing this from happening.

Security systems guard your online banking information, and even if hackers do somehow access your money, your bank is liable and will have to compensate you. You can also ensure the security of your internet login by downloading and installing up-to-date security patches on your computer.

One way internet fraudsters may attempt to get access to your money online is by sending you an email pretending to be your bank. They will ask you to update your bank details and send the information back. Be warned that no financial institution will ask you to provide private information in this way. If you receive an email like this, call your bank and alert them.

Banks do everything they can to keep your money secure in the online environment. By and large the benefits of online savings accounts far outweigh the risks.

Children’s saving accounts

Opening a savings account for your child is a great way to teach them about managing money. It is also a way to get them hooked on saving rather that spending, when they see that they could be earning extra money in interest.

Investigate the conditions of any account you intend to open for your child. Some may simply eat up your child’s money in fees. Other accounts, however, may have no account-keeping or transaction fees, and offer a great interest rate as well. It’s up to you to find the best account, so read the product offers before you commit.

In Money Magazine’s 2009 Best of the Best feature, the top three kids’ savings accounts from a bank were BankWest’s Kids Bonus Saver and Children’s Savings Account, NAB’s Smart Junior Saver and ANZ’s Progress Saver for Kids. Non-banks were MECU’s mySaver, Victoria Teachers Credit Union First Saver and Gateway Credit Union’s Dollaroo Savings Account.

Several financial groups have tailored their communication for kids and provide monthly statements with features such as graphs showing spending and savings habits. Kids’ accounts allow electronic deposits, so that relatives and friends can directly deposit gifts such as birthday or Christmas money to help with their savings.

Avoiding the pitfalls of children’s accounts

Many accounts for kids are designed for disciplined savers who don’t need to touch their money. For a top interest rate it’s hard to go past BankWest’s Kids’ Bonus Saver’s 8%. But watch out if your kids don’t deposit $25 to $250 each month or make any withdrawals – you are not paid the bonus rate but a base rate of 0.01%.

Similarly the ANZ will only pay a very low base interest rate 0.01% if kids don’t deposit $10 or more each month and withdraw funds. NAB pays 1% as a base rate. Non-banks pay a better base rate, MECU paying 2.75%, while Victoria Teachers and Gateway pay the total rate, regardless of deposits and withdrawals. Suncorp’s new Kids Savings Account allows one withdrawal each month, still paying the bonus rate.

Look closely at cut-off ages. When the kids reach the cut-off age the account is converted to another account that often pays a different rate of interest. BankWest may pay the best interest rate but when children reach 15 the account is converted to the Teen Scheme Account. BankWest also automatically shifts all funds from the Bonus Saver to the Children’s Savings Account once a year which pays interest of 0.5% for amounts under $5000. You have to open the Children’s Savings Account when you open the Kids’ Bonus Saver.

Gateway’s Dollaroo Savings Account cuts off at 16, while Victorian Teachers’ First Saver ends at 17. The NAB Smart Junior Saver and ANZ Progress Saver Account end when kids reach 18. One kids’ saver account, from credit union MECU, offers the bonus interest rate for anyone up to 25. It pays to do your research before you sign your kids and their savings up to anything, or they may not get good value.

Cash management accounts

Cash management accounts (CMA) are designed for savings and transactions. You will be able to use a CMA to pay your bills, make withdrawals at an ATM, transfer money online and so on. The main difference to a standard savings account is that with a CMA you will receive a higher rate of interest.

The main drawback is that you will normally be asked to deposit an agreed amount in order to open the account and receive the high interest rate. Your required initial deposit may be several thousand dollars.

These products have their own fees and charges, so investigate thoroughly before committing. You may find that if you keep your balance above a certain balance, some of your transactions will be fee-free.

These accounts are great for those who wish to save, but also need to have regular access to their money.

Term deposits

A term deposit is also another type of savings account. It works differently from a regular savings account as money is invested at a fixed rate and for a fixed period of time. The average ‘term’ of investment can be anywhere from 30 days to 5 years – it varies from provider t provider. As with many financial products, there are pros and cons to consider.

Pros:

  • Term deposits often offer higher interest than other savings accounts, even online savings accounts.
  • These accounts are an excellent idea when you have a lump sum that you don’t need to access straight away. Rather than spend away an inheritance sum, a bonus from work or another large sum of money, you can lock it away so that it grows you more money at a high and fixed interest rate.
  • Discipline – Term deposits are a great way for you to learn how to budget and not just withdraw money when you feel like it, such as for impulse purchases or during a night out on the town. Term deposits provide a way to keep your hands off the money that you really want to save rather than spend.
  • Cash flow – If your investment amount is large enough, it’s possible to use the interest as a timely source of income. Make sure you’re keeping track of the term end date and use it to your advantage.
  • Term deposits offer a safe place to lodge your money while ensuring that the interest rate offered remains the same for the entire length of the term. Thus, even if interest rates tumble, yours won’t-at least not until it comes time to renew.

Cons:

  • Decreased access to your money. Term deposits offer a higher rate of return than other savings accounts because the financial institution is counting on the fact that the money will stay with them for the length of the term. This means you cannot withdraw from your term deposit or access that money from an ATM, or shift it to another account online before the term has expired.
  • Penalty fees. If you experience an emergency or other crisis that forces you to require your savings immediately, you will have to pay a large penalty fee to withdraw your money before the agreed term is over. Unless you desperately need the money, think twice about doing this. It may not be worth the cost-unless you have already made some profit from the interest earned in the account, minus the early withdrawal fee, you could be losing yourself money.
  • A minimum opening deposit is usually required to open a term deposit. Certain high interest rate term deposit accounts with may require a higher minimum deposit or a longer fixed term. Read the terms and conditions of each term deposit product you are considering carefully before committing.
  • If interest rates rise, yours won’t, as a term deposit is locked in at the agreed rate for the whole term.
  • You cannot take the same advantage of interest compounding monthly with a term deposit. You may only receive interest on an annual basis or once the term is expired. Check the fine print to see how your interest will be calculated.
  • You may forget when the term is up and find it has been renewed automatically. This means if you were saving for a trip or some other purchase, that you will have to either put it off or access less money than you expected due to the exit fee.

While a term deposit can be a safe, reliable way to make your money grow, the drawback lies in the penalty for early withdrawal. Either a term deposit or a high interest savings account is a great way to get your savings working for you, but consider the pros and cons of both before making your decision. Ultimately, go with what best suits your individual needs and will help you best achieve your financial goals.

Review: Finding a great high interest savings account

In order to get the best savings account for you or your family, make sure you investigate the range of products out there and the conditions. It pays to read the fine print.

Consider before you commit:

  • What you want the account for-e.g. just for savings, or also for transactions.
  • Whether you will have enough access to your money.
  • How much you will be required to deposit initially.
  • Whether there are fees or penalties for making withdrawals.
  • What factors affect your interest rate.
  • Whether you need to deposit a certain amount each month.
  • Whether a minimum/maximum balance will affect interest rate.
  • Whether a bank or a credit union will offer you the better deal.

In the next section, we go into many of these issues. We highlight a number of things you need to know when locating the best interest rate, and the savings account that best suits your lifestyle and financial situation.

Maximising the return and avoiding the pitfalls – Understanding the fundamentals of high interest savers

1. How is interest calculated?

Before you sign up with a bank or credit union for a particular savings account, you need to check how the interest is calculated. You also need to clarify what conditions there are on the account-or you may not actually receive the advertised rate of interest, but a much lower one instead.

In the case of many high interest savings accounts, interest is calculated daily and paid monthly. Not all accounts calculate interest like this though, so check with your bank. Some accounts will calculate your interest daily and credit it to your account quarterly, bi-annually or even yearly, so it pays to check.

Your interest rate may vary depending on whether you have deposited the required amount per month. If you haven’t, you won’t qualify yourself for the high interest rate but will instead receive a much lower rate of interest for a period.

You also need to check whether your interest rate is fixed or variable, as the interest you receive could change from time to time, often without the financial institution giving you any warning.

2. Fixed vs. variable interest rates

When researching for the best high interest savings account for you, it’s important to consider whether the interest rate offered is fixed or variable. A fixed rate means you earn a specified amount of interest for a specified period of time, subject to conditions. A variable rate means that the interest you are able to earn will fluctuate over time, also subject to conditions. Variable rates change each month to follow the Reserve Bank of Australia base rate.

A variable rate may be described as a ‘fixed bonus rate margin on top of the current prevailing savings rates’ (which varies with the ongoing base rate). Don’t be fooled by the word ‘fixed’-your interest rate will change on a monthly basis.
A variable rate may work out better than a fixed rate; however, you need to take some time to work it out. In evaluating variable bonus rate offers, you need to determine the exact marginal rate for the bonus. This margin rate will combine with your own reading of how you think the base rate will move. You can then compare that combined rate with the fixed bonus rate offer.

In short, if you wish to take advantage of high savings rates offers then remember to take note of the fine print to avoid losing out.

3. Access to your money

Read the product offer to work out if you’ll have sufficient access to your money. Conditions vary between products.

Some accounts will let you withdraw your money for free from a range of different institutions’ ATMs. Check which ATMs you can use without incurring a penalty. If you use an ATM which is not affiliated with your financial institution, you will likely be charged a fee of $2 per withdrawal.

Check whether there is a restriction on how many withdrawals you can make per month without being penalised. Some children’s accounts will not want you to make any withdrawals per month, or else they drop the interest rate right down. Accounts for adults can have some similar conditions, so do your research.

Also check how much you can withdraw from your account in one day. There could be a restriction, so check the conditions to avoid a nasty shock at the counter when you go to make a big purchase or need to pay off a substantial bill.

Online savings accounts also have their own catches. You won’t be able to withdraw directly from that account at an ATM or pay bills from that account. You’ll need to transfer money from your online account into your daily transaction account. This transfer could be instant, or may take up to seven days to go through, depending on your financial institution.

If you keep most of your money in your online saver, you’ll need to make sure you put enough money in your daily transaction account to pay for what you need. Or else you could find yourself in a sticky situation-running to an internet café or calling up your partner to get them to shift your money for you. However, in the age of iPhones and mobiles with internet capability, this is becoming a far less significant problem.

On the other hand, these drawbacks could also be seen as benefits of online savers as they force you to be vigilant about how much money is in your daily account at any one time, think about how many purchases you can really afford to make, and restrict you from blowing all your savings on impulse purchases. Despite the restricted access of online savers, the high rate of interest generally makes up for the drawbacks in terms of access.

Most accounts will also give you access to telephone banking. When you call, you can listen to your account balances and transactions, transfer money or also speak to a consultant if you require further assistance.

Some banks specify periods, such as after a deposit, when your money is fixed and inaccessible. Check with your bank.

There may be a minimum transaction limit, say of $500. This means you can’t move amounts of less than $500 into or out of your account. Read the product offer to avoid technicalities which may affect your access to your money.

4. Minimum/maximum balances

Some high interest savings accounts have a minimum opening balance, which could be several thousand dollars. This will be specified in the product offer.

There may also be a condition that you will not receive the high promotional interest rate, but instead a lower rate on your money if your balance goes under a ‘minimum’ balance. Amounts over the ‘maximum’ balance may also not earn the high interest promotional rate you signed up for.

Other accounts will only pay you a certain rate of interest for a specified amount of money. For example, amounts under $5000 could earn interest at one rate, and balances over that amount could earn interest at a different rate. Your account may not calculate your interest at a single rate based on your total balance. It all depends on the conditions of the account, so investigate.

Some accounts however, will allow you to open the account with as little as $1, have no minimum or maximum balance, allow you to make unlimited transactions of whatever amount, and will pay you the specified rate of high interest on whatever funds are in your account. Conditions vary from provider to provider, so read the product offer and clarify anything you’re unsure about before you commit.

5. Caps on maximum interest per month

There may be a cap on how much interest you can earn per month. After you have earned that interest, your balance will earn interest at a rate lower than the one you signed up for. Check in the product offer to find out how your interest is calculated, and what rates apply to what amounts.

Your financial institution might also pay the premium interest rate up to a specified cap and then pay a lower rate on balances above the cap.

This was developed by financial institutions from 2003 onwards as a way to encourage consumers to open multiple accounts, while limiting the interest expense associated with each account. Check the details of your product offer to find out if your interest will be capped, or if only a certain amount of your savings will be eligible to generate interest.

6. Penalties for withdrawals

Some accounts will penalise you for withdrawing money from your account. If you make a withdrawal or go over a specified number of withdrawals in one month, you may be bumped down to a far lower interest rate for that month.

If you don’t qualify for the bonus rate in a certain month, only the standard interest is applied for the month – and that is a very low rate. For example, the bonus rate is 3.01% but the standard rate is only 0.01% on the Commonwealth Bank Award Saver.

7. Penalties for not depositing enough per month

Your financial institution may also not pay you the high interest rate if you fail to deposit a certain amount of money each month. If you don’t qualify for the bonus rate in a certain month, only the standard interest is applied for the month-and that is generally a very low rate.

Other accounts do not specify that you must deposit specific amounts per month, but will calculate interest at the high rate for any money that is in your account. Read the product offers to determine whether monthly deposits will affect your interest rates.

8. The pitfalls of high interest rate introductory periods

Beware, beware the ‘variable welcome rate’ when you are searching for a high interest savings account! When comparing online savings accounts always check the standard rate, as this is likely to be the interest rate you’ll receive once the bonus offer comes to an end.

Financial institutions offer high interest bonus rates on new accounts to entice new customers. However, many of these high rates are not permanent. Many will only last for a short period of time, such as a year or less, and will then drop down to a lower rate of interest. Often, the bank gives you no warning other than in the product offer; they will just drop the interest when the time comes, without notice.

At the end of the high interest period, the bank is hoping that either you won’t notice, or you’ll think it’s too much of a hassle to move to another bank, and will stay with them. A lot of people fall into this trap, and it’s a shame for their savings.

If you do choose to sign up to a savings account which only gives you high interest for a limited period of time, keep your eye on the date when the bonus rate ends. Consider where you’re going to put your money after that time. One option could be switching to another account with a different financial institution offering a high interest rate, but make sure you thoroughly check the conditions on that one too.

If constantly moving your deposits seems too labour intensive, however, it could be a good idea to look for a high interest savings account that assures you of a more consistent payout for a longer time rather than a windfall for a short period only.

9. Fees and charges

Some high interest savings accounts will have no account-keeping fees or monthly fees, however, others will charge you for certain behaviours. You could be charged $2, for instance, each time you withdraw money at an ATM not affiliated with your bank. Go through the details on fees and charges when evaluating what account is best for you and your spending patterns. You may have to modify the way you use your account to avoid being charged fees.

Review: What to look for in a great high interest savings account

In order to get a high interest savings account that delivers real benefits, you need to be aware of the conditions affecting your interest rate. Do your research, and stick by the conditions to make sure you actually get the interest rate you signed up for.

Before you commit to opening a particular high interest savings account, work out:

  • How the interest is calculated.
  • Whether the high rate is an introductory rate which drops down later.
  • Whether the interest rate is fixed or variable.
  • How many withdrawals you can make per month without penalty.
  • Whether your money is fixed and inaccessible for certain periods.
  • The requirements on linked transaction accounts.
  • How long transfers take to go through-instant or delayed.
  • What fees and charges are on the account.
  • Whether there are minimum or maximum balances on which you can earn the high interest rate.
  • Whether interest is capped.
  • Whether you will need to make certain deposits per month to qualify for the high interest rate.
  • Withdrawal or transaction limits.

Make sure you satisfy any questions you have about the account before you open it, to avoid not receiving the return you thought you would later on down the track.

Read the product offers thoroughly before you agree to anything, and don’t be afraid to call the bank and speak to someone if you need to investigate further. Sometimes the full terms and conditions are hard to find on a website, so when in doubt, get in contact with the financial institution.

Get the best for your savings and reach your financial goals sooner!

A comparison of the high interest savings accounts on the market

The following product comparisons were accurate as of July 2010. To find out the specific terms and conditions of each account, please investigate the product offers further online.

SavingsAccountComparison.com.au does not endorse the products of any financial institution above another-it is up to you to decide which account best suits your needs and financial behaviours.

That said, happy comparing!

Savings account Variable rate p.a. Base rate p.a. Intro rate p.a. Fees Min balance/min deposit
UBank USaver 6.51% 6.01% 0.50% None $0/$0
RaboDirect High Interest Savings Account 6.40% 5.00% 1.40% None $0/$0
Citibank Online Saver 6.35% 5.25% 1.10% None $50/$20
St. George Direct Saver 6.15% 4.60% 1.55% None $0/$0
NAB iSaver 6.00% 4.25% 1.75% None $1/$1
ANZ Online Saver 6.00% 4.50% 1.50% None $0/$0
Suncorp eOptions Saver 4.75% 4.75% 0.00% None $0/$0

There are plenty more accounts available, so investigate further online.

Making the most of your money

How to get a better interest rate from your current bank

Take some time to compare your current bank account, conditions and interest rate with other accounts on the market. You’ll work out pretty quickly whether your existing account is competitive amongst the best available, or whether you could stand to do better.

If you discover your account is an under-performer, you don’t necessarily need to switch banks to get a better deal. Instead, you can negotiate better terms with your current bank.

Banks will work hard to keep an existing customer, as it is far easier for them to keep you happy than it is for them to acquire a completely new customer who has never banked with them before. Increased competition in the banking market and the ease of switching accounts are also working in your favour here, so it’s likely that your bank will be open to discussing terms with you.

Once you’ve done your homework, approach your bank, ideally through your relationship manager. Set out the results of your research. Explain why your current arrangement falls short of others available, illustrating how other banks’ deals could deliver greater benefits for you.

Ask if your bank is prepared to amend the terms of your account. Banks will often consider changing specific charges or your interest rate, rather than have you take your business elsewhere.

Moving to another bank

If your bank cannot offer you a better rate or conditions than you can get elsewhere, follow through and move your money to a different financial institution. This sends a strong message to banks that they must remain competitive, or else face the music. The more people that do shift, the harder banks will have to work to provide a really great service to customers.

Your money should be earning you the best rate it can. No sole bank is entitled to your business without providing you a competitive rate of return, just because you have been with them for a certain period of time.

Research which accounts will offer you the best interest rate, and also take into account the other factors discussed above, such as how the interest is calculated and the conditions, and so on.

When you find a better account, close your old account and switch. Many financial institutions will allow you to apply for and set up new accounts online. This is typically a fairly quick and simple process.

Your new financial institution will also be able to help you with transferring your existing balance to your new account, so consult their customer service team in person, on the phone or online if you need any assistance.

How to apply for a high interest savings account online

Do your research about what high interest accounts are available and offer the best conditions. You can apply for accounts online at the bank or credit union’s website or on sites that compare high interest savings accounts.

Once you’ve chosen your new account, click the ‘apply now’ button. You will be taken to the application page for your decided financial institution. The online application process is secure and directly on the bank or credit union’s own website. Online applications are typically quick to complete. Some may only take you about ten minutes to fill out your personal details and satisfy other criteria.

To open an account you may need to be an Australian resident, over a specified age, and have your Tax file number available. You may also be asked to provide your current bank account details so that you can link the accounts or transfer the money from your original account into your new account. If you are unsure at any stage in the application process, the financial institution will be able to help you. There will typically be an FAQ online, or customer support you can email or call.



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