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Fuss-free savings accounts finally hit 5%
Savings rates with no monthly terms and conditions have hit a new highest ongoing rate of 5 per cent, with the launch of Unity Bank’s new MoneyMAX account.
The top ongoing savings rate in the market is from ME Bank at 5.65 per cent, however, to qualify for this rate customers need to deposit at least $2000 into a linked account and grow the savings balance each month. If customers fail this test, their rates fall to just 0.55 per cent for the next month.
At last week’s parliamentary hearing RBA Governor Philip Lowe suggested savers should be earning more than 5 per cent on savings accounts “without too much trouble”.
The RateCity database shows there are 14 banks offering ongoing savings rates at over 5 percent, however they all have strict terms and conditions to qualify for this rate.
UnityBank’s new MoneyMax is the only account offering 5 per cent interest with absolutely no conditions required.
Top three savings accounts with no conditions
| Provider | Rate | Max amount |
| Unity Bank MoneyMAX | 5.00% | N/A |
| ANZ Plus Save | 4.65% | $250,000 |
| BOQ Simple Saver | 4.50% | $5,000,000 |
Source: RateCity.com.au
RateCity research shows a customer could earn significantly more interest with either Unity Bank’s MoneyMAX account, or the market leading savings account from ME Bank (provided they meet the monthly terms and conditions), when compared to the lowest big four bank ongoing savings rate in the market.
ME Bank vs Unity Bank vs Westpac – how they stack up
Interest saved on a balance of $25,000 – assumes monthly conditions where required are met
| Account | Rate | Total interest - 1 year |
| MEBank HomeME | 5.65% | $1,452 |
| Unity Bank MoneyMAX | 5.00% | $1,281 |
| Westpac eSaver | 1.10% | $277 |
Source: RateCity.com.au Note: assumes monthly terms and conditions are met for max available interest on highest savings account. Assumes Westpac customer is on ongoing rate. Does not factor in extra deposits or withdrawals.
RateCity.com.au research director, Sally Tindall, said: “Savers can finally get an ongoing rate of 5 per cent without having to jump through a single hoop.”
“Those prepared to do what it takes to get the highest rate possible are likely to look beyond this account, but for some savers wanting a hassle free option, Unity Bank’s new savings account delivers a competitive rate,” she said.
“Savings accounts are often littered with fine print, designed to catch complacent savers out. Freeing themselves from these shackles will help some people earn more interest on an ongoing basis.
“If you’re looking for your next savings account, think about what suits your finances, your lifestyle and to an extent, your personality, and find an account that suits all three.
“It’s important to remember banks need funds to help support their home loan books, which means your money is in demand,” she said.
Savings accounts offering 5 per cent or more
| Account | Max ongoing rate | Base Rate when conditions not met | Max balance for max rate | Conditions |
| ME Bank HomeMe | 5.65% | 0.55% | $100,000 | Deposit $2k+ into linked account and grow savings balance each month |
| ING Savings Maximiser | 5.50% | 0.55% | $100,000 | Deposit $1k+ into linked account, make 5 transactions and grow savings balance each month |
| BOQ Future Saver (ages 14 – 35) | 5.50% | 0.05% | $50,000 | Deposit $1k+ into linked account, make 5 transactions each month |
| MOVE Bank Growth Saver | 5.50% | 0.10% | $25,000 | Deposit $200 and make no withdrawals each month |
| Teachers Mutual Bank/
Firefighters Mutual Bank/ Health Professionals Bank/ Unibank Target Saver | 5.50% | 0.01% | $5,000,000 | Deposit $1k+, make no withdrawals and maintain positive balance |
| Virgin Money Boost Saver | 5.35% | 0.05% | $250,000 | Deposit $1k+ into linked account, make 5 transactions each month, and provide 32 days’ notice to withdraw money |
| Great Southern Goal Saver (18-24) | 5.35% | 0.50% | $250,000 | Deposit $500+ into linked account, make 5 transactions each month |
| Great Southern Home Saver | 5.25% | 0.50% | $100,000 | Deposit $2000+ into linked account, make 5 transactions each month |
| Police Bank/Bank of Heritage Isle U30 Super Charge (18-29) | 5.25% | 0.00% | $30,000 | Deposit salary into a linked account |
| Bendigo Bank Reward Saver | 5.25% | 0.30% | $100,000 | Grow balance each month |
| Westpac Spend&Save (18-29) | 5.20% | 2.00% | $30,000 | Make 5 transactions from linked account and grow balance each mont |
| BOQ Smart Saver | 5.10% | 0.05% | $250,000 | Deposit $1k+ into linked account, make 5 transactions each month |
| Unity Bank MoneyMAX | 5.00% | 5.00% | N/A | N/A |
| St.George/Bank of Melbourne/BankSA Incentive Saver | 5.00% | 1.85% | N/A | Grow balance by $50+ each month and maintain positive balance |
| AMP Bank Saver | 5.00% | 1.00% | $250,000 | Deposit $1,000+ each month |
| HSBC Bonus Savings | 5.00% | 2.50% | $5,000,000 | Grow balance by $300+ each month |
| RACQ Bonus Saver | 5.00% | 0.01% | $99,999 | Deposit $100+ each month and make no withdrawals |
| MyState Bank Bonus Saver | 5.00% | 0.05% | $250,000 | Deposit $20+ and make 5 transactions from linked account each month |
| Southern Cross Credit Union Star Saver | 5.00% | 1.25% | N/A | Grow balance by $200+ each month |
| ubank Save Account | 5.00% | 0.10% | $250,000 | Deposit $200+ each month |
| People's Choice Dream Fund | 5.00% | 0.01% | N/A | Grow balance each month |
Source: RateCity.com.au
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Product database updated 08 May, 2024
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