Your savings are an integral part of your overall financial plan and security, and you need to make sure they are getting the best possible care. To do this you should be using a dedicated high interest savings account to remove those funds from the path of temptation, and help them grow through your own contributions, and rewards from the bank.

However, as you will know from your other financial products – be it your home loan, a personal loan or your transaction account – you often have to pay more in fees, for feature packed accounts. With high interest savings accounts in Australia that is not the case because you can find a no fee savings account which can make your money work harder for you as it earns interest, while not having to worry about account keeping or transaction fees eating away at your savings.

No Fee Savings Accounts Comparison

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

That is because Australian high interest savings accounts are designed to help you maximise your savings, and to achieve this, high interest savings accounts in Australia have gone online. This means with a little time spent in comparison and choosing an account with the features you want and need, you can very easily open and maintain your savings account fee free.

If you’re wondering how to make your savings dream a reality and find a no fee savings account which is the right fit for you, then have all of your high interest savings account questions answered right here. It is important that you know the differences and importance of a high interest savings account over your regular everyday transaction account because if you are using your transaction account for your savings, not only can you be losing out in fees, your achievements at setting aside those savings are not being fully rewarded.

With a high interest savings account, your bank or financial institution will reward you with ongoing high interest rates and no fees because while you’re saving your money, they are able to utilise the funds you’re keeping with them, to fund home loans, business loans or personal loans. As a result, the bank is able to generate interest income and fee income from their new customers, using your savings, and so passes that income on to you by paying high interest.

When you are choosing and comparing high interest savings account remember that each bank and financial institution targets their accounts to different customers, so you need to be clear about the features you are looking for, and understand how to operate your account fee free. That is why all of your questions about using an comparing no fee savings accounts have been answered right now for you.

What are the features of a no fee savings account?

To help you maximise your savings and make it as easy as possible to stick to your savings plan, you need to make sure you are getting a no fee savings account with the following features, which will not only help you use your account more effectively, but also use it fee free:

  • An online application. An online application for a high interest savings account doesn’t just make the process simpler and less time consuming for you, but also for the bank. This means that you can avoid application or set up fees for your account, as well as completing the entire process in around 10 minutes.
  • Online access. Similarly, when you manage your account yourself online, it costs less for the bank or financial provider as they do not have to dedicate staff time or branch hours to your account. Therefore, when you deposit to your account electronically, check your balance and make withdrawals online, you can avoid transaction fees.
  • High interest rate. Your no fee savings account will have a high interest rate which will typically be around two to three percent higher than the RBA’s official interest rate, and therefore much higher than the interest you were earning (if at all) on your transactional savings account. Plus the interest will be calculated daily which means you are earning interest on your interest as the interest from the previous day is added to your savings balance and interest the following day is calculated on your balance plus your interest, and so on throughout the month until the interest is paid into your account at the end of the month.
  • No fees. It is possible for you to open and use your high interest savings account entirely fee free which is an important feature when every dollar you save gets you closer to your goal, or closer to financial security. You’ll also benefit from the absence of exit fees which mean you are not penalised with fees when you close your account if you have reached your goal, or if you find a different high interest account which better suits your needs.
  • Motivates you to save. Depending on your savings habits, you can choose a savings account which rewards you for those good habits. For example, if you know you can make regular contributions, choose a savings account which pays bonus interest for deposits of a certain value each month. If you need to be motivated to save and stop spending, choose an account which pays bonus interest if you don’t make a withdrawal.
  • Saving tools. Saving tools have come a long way since the piggy bank, and now come in the form of sub-accounts which allow you to save for more than one goal, goal trackers which show you how far you have to go to reach a savings target, and graphs or displays showing just how far you have come, and how much interest you have earned.

What are the benefits of a no fee savings account?

While you can benefit from having at call access to your savings in the case of an emergency and without penalty, a no fee savings account also has the ability to remove temptation. With your savings in a separate, dedicated savings account you are not able to access them using your ATM or EFTPOS card and this remote access, only via online banking, allows you to keep to your savings plan.

You can also benefit from a no fee savings account because with regular contributions you are getting into the habit of spending less than you earn. As a result you will eventually build up a savings buffer which will mean that an unexpected bill or event which would previously have wreaked havoc on your budget, is not a disaster and can be covered by your emergency funds.

How to use a no fee savings account to maximise the benefits?

Once you understand how to maximise the myriad of benefits which come with a high interest savings account, you will be able to set and forget your savings while enjoying the returns. To use your no fee savings account:

  • Apply for and use your account online. Typically a no fee savings account will remain no fee for as long as you use it online. Often as soon as you make a deposit by cheque or you access your account in branch, you will attract fees.
  • Link to a transaction account from the same provider. This allows you to make fee free transfers between accounts from the same provider as you make contributions to your account, or withdraw your funds. It also means when you deposit your funds to your high interest savings account they arrive immediately and start earning interest sooner.
  • Set up an automatic transfer. Since your transfers are fee free within the same provider, you can set up a direct debit from your transaction account for your pay day each week, and keep up with regular contributions without having to remember. The benefit of regular contributions throughout the month is also more compounding interest because if you are able to deposit $50 each week throughout the month, you’ll earn more interest than if you had simply transferred in $200 before the end of the month.
  • Set goals. If you have a savings plan, you will be more motivated to keep saving to build up your financial security. Therefore, make sure of the savings tools which are included in your account so you can track your progress and see how much you have saved, how much interest you have earned and how much of a difference it makes increasing your contribution by just $10 or $20 a week. Even if you are simply saving to build an emergency fund, set a goal, and when you’ve reach it, set another.

How to compare to find the best no fee savings account?

Finding the best no fee savings account is all about finding the one which works for the way you spend and the way you save. Therefore, as well as comparing the features and benefits of each account, think each time about how those features would benefit you. To compare no fee savings accounts look at:

  • Low or no fee accounts. Just because the majority of online high interest savings accounts will reward you with no fees, or fee free saving online, doesn’t mean you shouldn’t check the fine print of every application before you decide on the right account.
  • The interest rate. The interest rate on your no fee savings account will be variable and this means your provider can move the rate up or down in line with the official cash rate, or their own financial position. Therefore, look for a competitive interest rate, but also consider those accounts which offer a guaranteed bonus rate above the standard interest paid on the account because if you are willing to follow these promotions you can earn up to 2% more in interest during the promotional period. Alternatively, if you’re looking for a long term savings plan, shop around for the highest ongoing rate.
  • Features you will use. For example, if you are saving for a holiday and a new car then you could benefit from a no fee account with sub-accounts to allow you to separate your savings goals. If you know you won’t be making withdrawals over your long term savings plan, look for a bonus interest feature which rewards you in the months you only make deposits.
  • Your needs. Your savings goals and your savings style will both influence the features you need in a high interest savings account. For example, if you are saving to build an emergency fund then you can expect to make withdrawals when those emergencies arise, so choose a savings account with a high base interest rate.
    Saving time and money in your application. When you can apply online as well as have your provider verify your identity online then you can save time and money because you don’t need to visit a branch. It also means that your account can be approved and active on the same day you apply, so you can be saving and earning interest right away.

The search for the best no fee savings account can seem a monstrous one because there are just so many accounts to choose from. However, this can be of a benefit to you because with so many accounts competing for your business, you know that interest rates, features and fees will be competitive, and you have the power to shop around and find the best deal.

You can even start by approaching your current financial provider, armed with the knowledge of what you want in a no fee savings account, and how competitive the market is, you could find they are willing to offer you an interest rate higher than that advertised, or include the features you’re looking for.