Find and compare high interest bank accounts

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$0

Free access to thousands of ATMs nationwide

CUA

Visa

Apple Pay
Google Pay
Interest rate
Overseas ATM facilities
Samsung Pay
Linked account

3.96

/ 5
More details

$0

Over 3,000 Westpac Group ATMs

Citi

Gold Award Winner 2020

0.75%

MasterCard

Apple Pay
Google Pay
Interest rate
Overseas ATM facilities
Samsung Pay
Linked account

4.39

/ 5
More details

$0

P&N Bank

Visa

Apple Pay
Google Pay
Interest rate
Overseas ATM facilities
Samsung Pay
Linked account

3.96

/ 5
More details

$0

Over 3,400 rediATMs

AMP Bank

Visa

Apple Pay
Google Pay
Interest rate
Overseas ATM facilities
Samsung Pay
Linked account

2.86

/ 5
More details

$0

Over 3,400 rediATMs

AMP Bank

Visa

Apple Pay
Google Pay
Interest rate
Overseas ATM facilities
Samsung Pay
Linked account

2.86

/ 5
More details

$0

Over 3,400 rediATMs

AMP Bank

0.25%

Visa

Apple Pay
Google Pay
Interest rate
Overseas ATM facilities
Samsung Pay
Linked account

2.86

/ 5
More details

$0

ANZ

Visa

Apple Pay
Google Pay
Interest rate
Overseas ATM facilities
Samsung Pay
Linked account

4.14

/ 5
More details

$0

ANZ

0.02%

Visa

Apple Pay
Google Pay
Interest rate
Overseas ATM facilities
Samsung Pay
Linked account

3.84

/ 5
More details

$0

Approximately 3,000 ATM locations

Arab Bank Australia

0.01%

Visa

Apple Pay
Google Pay
Interest rate
Overseas ATM facilities
Samsung Pay
Linked account

1.31

/ 5
More details

$0

Over 3,000 rediATMs

Australian Military Bank

0.01%

Visa

Apple Pay
Google Pay
Interest rate
Overseas ATM facilities
Samsung Pay
Linked account

0.00

/ 5
More details

$1

Over 3,000 rediATMs

Australian Military Bank

0.01%

Visa

Apple Pay
Google Pay
Interest rate
Overseas ATM facilities
Samsung Pay
Linked account

0.00

/ 5
More details

$2

Over 3,400 RediATMs

Transport Mutual Credit Union

0.07%

Visa

Apple Pay
Google Pay
Interest rate
Overseas ATM facilities
Samsung Pay
Linked account

0.00

/ 5
More details

$0

Over 3,000 Westpac Group ATMs

Auswide Bank

Visa

Apple Pay
Google Pay
Interest rate
Overseas ATM facilities
Samsung Pay
Linked account

0.00

/ 5
More details

$0

Over 3,000 rediATMs

Bank Australia

0.01%

Visa

Apple Pay
Google Pay
Interest rate
Overseas ATM facilities
Samsung Pay
Linked account

3.65

/ 5
More details

$0

Over 3,000 rediATMs

UniBank

Visa

Apple Pay
Google Pay
Interest rate
Overseas ATM facilities
Samsung Pay
Linked account

3.78

/ 5
More details

Learn more about bank accounts

If you manage most of your incoming and outgoing money through an everyday bank account, you might be wondering if you can earn a decent amount of interest on a standard transaction account.

While some transaction accounts come with a higher-than-average interest rate, these rates still tend to be lower than the interest rates available on savings accounts.

What’s the difference between a transaction account and a savings account?

A transaction account, also known simply as a ‘bank account’, is a standard account used for day-to-day expenses. This is typically the account that you have your salary paid into and use to pay bills. You can access funds using a debit or credit card, and usually don’t have to pay any fees for ATM withdrawals or transfers.

A savings account is designed to help you save over the long term and allow you to earn interest on the money you’ve deposited into the account. Typically, they offer a higher interest rate than a standard transaction account.

Savings accounts often carry withdrawal fees and monthly withdrawal limits to encourage you to save. This is also advantageous for banks, because they can use customers’ savings deposits to balance their books when lending money to other customers.

How do bank account interest rates work?

Banks set interest rates based largely (although not entirely) on the Reserve Bank of Australia’s cash rate. Usually, a lower cash rate equals a lower interest rate on your savings account.

Some high-interest bank accounts earn compound interest, which means you earn interest on the money you have deposited as well as the interest you’ve earned. Other accounts earn simple interest, which means you only earn interest at the end of a specified term.

It’s important to check how often interest accrues on a bank account, because a compound interest account will yield higher returns over time.

For example, if you invest $8,000 for three years at 5 per cent per year, with simple interest paid at the end of the term, you would earn $1,200 in interest ($400 each year), giving you a total balance of $9,200.

If you invest $8,000 for three years at 5 per cent, with compound interest calculated and added monthly, you would earn $1,292 in compound interest after three years, giving you a total of $9,292. The total returns are higher because you earn interest on interest.

Advantages and disadvantages of high-interest bank accounts

There are plenty of investment options out there, and a high-interest bank account is just one of them. Here are some of the potential benefits and drawbacks to having a high-interest transaction account:

Advantages

  • Safe investment – Your money is protected under the Australian government’s guarantee for authorised deposit-taking institutions (ADIs) such as banks, building societies and credit unions.
  • Easy access – Because it’s a transaction account, it’s easy for you to access your money when you need it.
  • Dual function – You can use a single account for everyday expenses as well as to save money.

Disadvantages

  • Lower interest rates – Typically, even high-interest bank accounts have a lower interest rate than savings accounts.
  • Savings and everyday expenses are combined – You may find it easier to stick to a savings plan if you have a separate savings account that you don’t dip into for day-to-day expenses.
  • Returns are modest – Other investment options may yield better returns (although they also tend to be riskier).

What to look for when choosing a high-interest bank account

Not all high-interest bank accounts are created equal, so it pays to do some research and find one that can offer you the most value and savings potential over time. Here are three of the key considerations:

1. Introductory rates

Some bank accounts come with an offer of a high introductory variable interest rate for a set period. Once this period is over, the interest rate will default to the standard. Check how long the introductory rate applies (if there is one) and whether the standard rate is reasonable.

2. Fees

Some high-interest bank accounts come with account-keeping fees or transaction fees. If you choose an account with fees, make sure the benefits outweigh the costs.

3. Savings goals

Your savings plan and goals should dictate the type of high-interest bank account you choose. For example, if you are putting money aside for a year to go on a holiday, an account with a high introductory rate but lower standard rate might suit you. On the other hand, if you are saving for a house deposit over a few years, you may want to look for a long-term savings account with a more stable interest rate.

Take a look at RateCity’s high-interest bank account comparison tool to find an account that’s right for you.

Frequently asked questions

Can you open another account at the same bank?

Yes, you can open another account at the same bank if you already have an account there, but some banks place a limit on how many specific accounts you can open.

Generally, though, it is possible to have more than one everyday account, one personal account and one joint account, or have different types of accounts – such as a transaction account and a savings account.

Keep in mind that some bank accounts come with fees, so you could be charged twice for having two types of the same account at the same bank.

Also, if you have more than one high-interest transaction account at the same bank, only one account will be able to earn the highest rate of interest.

Opening a bank account for someone under 18

Can you find your bank account number online?

If your bank offers online services, you should be able to find your bank account number online by logging into your account on your bank’s website and checking your details there.

Keep in mind that each type of account you have with a bank comes with a unique account number. This means if you have a bank account as well as a savings account, for example, your bank account number and your savings account number will be different.

If you don’t have access to your bank account online or can’t login, you should be able to find your account number on a mailed bank statement, if you have one.

Alternatively, you can call your bank’s customer service number or visit a branch to retrieve your account number.

Can I close my bank account over the phone?

In most cases, you can close a personal or business bank account over the phone. In fact, this is the best way to ensure you’ve closed an account properly.

By speaking to a banking representative, you can capture and close out any pending transactions, or interest owing/payable on the account being closed.

In the instance where the account is a joint account, or you have multiple bank accounts you want to close, your bank may send you a form that you need to fill out and return.

Either way, you would be advised over the phone of the steps you need to take. Calling your bank ahead of closing an account is often a smart course of action.

Can I open a bank account in another country?

Despite having a bad rap for facilitating tax evasion, it is possible and legal to open a bank account in another country, also known as an ‘offshore account’.

Some people choose to open a bank account in another country to invest overseas, for higher interest-earning potential or to access foreign banking services.

The process for opening an offshore bank account differs depending on the financial institution and country in which you’re opening the account.

Typically, you will need to provide identification such as a passport, a local bank statement and a signed declaration proving the source of the money being used to open your account. Usually, deposits into offshore accounts can be made by international money transfer.

How do you open a bank account in Australia?

Opening a bank account in Australia is usually a straightforward process. Some banks give you the option of opening an account online, while others require you to visit a branch.

Different bank accounts offer different features, so it’s best to compare your options to find one that suits you.

All banks require you to pass an identity check to open a bank account. Australia uses the 100-point identification system, which means you’ll need to show a number of forms of ID that, together, add up to 100 points.

Common ID types include a driver’s licence, passport, Australian visa in a foreign passport, and Australian Medicare card. You’ll find out what types of ID are accepted when you go through the sign-up process online or at a branch.

Once your account is open, you’ll be given or sent a debit card that you can use to make purchases and withdraw money from your account.

Are bank accounts frozen when someone dies?

Yes, Australian bank accounts are frozen when someone dies. If you want to close the account of somebody who has died, you might have to provide proof of death and a copy of the will. You might also have to prove your relationship to the deceased person.

If you have a joint bank account with somebody who has died, you will generally be entitled to all the money in the account. Again, you might have to provide proof of death if you want to change the bank account from a joint account to a one-person account.

Can I start a bank account online?

Yes, most lenders that operate in Australia will let you set up a bank account online. The process is usually simple and takes five to 10 minutes. You will probably need to provide a passport or birth certificate, as well as a driver’s licence, Medicare card or another form of secondary identification. Requirements differ from lender to lender, so some institutions might ask for more or different forms of ID.

Can you deposit money into somebody else's bank account?

One of the easiest banking tasks in the world is depositing money. You can even deposit money into someone else’s bank account if you wish.

The basic information you need to deposit money into a third-party bank account is:

  • Payee’s name
  • Bank, building society or credit union (though this isn’t necessary)
  • BSB (or bank code, which is the branch identifier)
  • Account number

Including the name of the financial institution isn’t necessary – particularly with online banking – because the BSB will identify this for you.

A handy tip is to record yourself (or add a personal message) in the transaction description or reference. This will show up on the recipients account, letting them know who’s paid them the money.

How can I close a Commonwealth Bank account?

You can close your Commonwealth Bank account at any branch, provided you have appropriate identification. You can also close your account over the phone, by calling 132 221, 24 hours a day.

Can foreigners open bank account in Australia?

If you’re migrating, studying or working in Australia, you’ll be pleased to know that you can open an Australian bank account. For the most part, opening a bank account in Australia is a simple process which starts by comparing the types of bank accounts foreigners can open in Australia.

Once you’ve found a bank account that suits your needs, you can start the application process.

When you apply for the account, you’ll need to provide proof of ID which may include your passport, overseas ID or credit card. You may also need to provide a copy of your visa and proof of address in Australia.

Depending on the bank and the type of account you choose, you may be able to apply for the account online or over the phone before you arrive in Australia.

How do I close my bank account online?

You can usually easily open a bank account online, but you often can’t close it online.

Many banks and credit unions will only let you close an account if you go into a branch or call them on the phone.

However, some banks will let you request to close the account via your internet banking. Check your financial provider’s website for details.

Just remember: If you still have funds in the bank account, transfer them to another account, or withdraw the cash. Also, if you have any payments like direct debits going in or out of the bank account, these will also stop when you close your account.

What do I need to open bank accounts online?

Opening a bank account online is a simple process and only takes between five to 10 minutes to complete. To get started you will need a computer or smartphone with internet access.

Information to have available when you’re ready to apply is:

  • Identification (such as driver’s licence, birth certificate, passport, proof-of-age card)
  • Tax file number
  • Residential address, email and a contact number

In some cases, you might be asked to provide employment details. If you’re not able to verify your identity online, most financial institutions let you provide this in the branch at a later date.

There are some types of bank account that you can apply for only in a branch. However, most bank accounts can be applied for conveniently online.

How do I overdraw my Commonwealth Bank account?

Overdrawing a bank account can happen by accident. It’s often hard to know what your balance is, particularly with direct debits, scheduled repayments and pending transactions competing for cash.

To avoid being stuck with a bank fee every time your account is overdrawn, you can apply for a personal overdraft. This will enable you to overdraw your account up to an approved amount.

A personal overdraft is connected to your CommBank Everyday Account, so you can enjoy easy access to extra funds once approved – anywhere from $100 up to $20,000.

Your overdraft funds can be accessed via your CommBank keycard or Debit MasterCard, or online through NetBank and the CommBank app.

To apply you can either call the Commonwealth Bank directly or visit your local branch.

How do you deposit change into your bank account?

One way to deposit change into your bank account is to visit a branch. Many lenders will also allow you to deposit your change through one of their ATMs.

Can you open a bank account at 16?

Yes, you can open a bank account at 16, or even younger. If you’re 13 or under, you will probably need a parent to accompany you to a branch.

How do you find a bank account number by name?

For privacy reasons, Australian banks won’t hand out account numbers or other details about their customers. However, if you provide a bank with a BSB and account number, they should be able to confirm if those numbers belong to one of their customers.

How do you change your account name on NAB banking?

Changing the name on your NAB bank account is straightforward, as long as you have the right documents.

If you’ve just got married, divorced or legally changed your name, here’s what you need:

  • Married – a marriage certificate
  • Divorced –your ‘decree nisi’
  • Legal name change –your legal name change certificate

You can take either the original document, or a certified copy, into a NAB branch, where it needs to be sighted by a bank employee and a copy taken.

Your NAB bank account name will be updated immediately. New debit, ATM and credit cards with your updated name will also need to be issued. These usually take between five to 10 working days to be posted out to you. Your existing cards will keep working until you activate your new ones.

If you haven’t legally changed your name, but just want to change your account nicknames, you can log onto NAB and do it through the Settings/Mailbox menu.

Can I close a bank account with pending transactions?

You can close a bank account with pending transactions. But after the account is closed, any incoming transactions will be declined by your (old) bank.

The best way to ensure this doesn’t occur is to either wait to close your account until all pending transactions are complete, or contact the creditor and supply them with alternate bank details.

If you’re unsure whether you have any scheduled transactions, you can speak to a banking representative over the phone or via online support.

In most cases, your bank withholds the amount owing for pending transactions (such as online purchases).

Because the pending amount is deducted from your bank balance, you can close your bank account and the purchase will be honoured.

Can I link a bank account to Paypal?

Paypal is a safe and convenient way to pay online without the need to share your financial details. You can send and receive money or accept credit and debit cards as a seller using Paypal.

It’s easy to link your bank account to a Paypal account and start making transactions within minutes.

To start, you first need a Paypal account (it’s free to join). When setting up your Paypal account, you will be prompted to link a credit card or bank account (or both if you wish).

PayPal works without a balance; you can use Paypal to shop or send money when your balance is zero.

When your Paypal balance is zero, Paypal will ask you to choose your preferred payment method at the checkout.

This could be either your linked bank account or credit card. Your bank details can be updated if you change banks or credit cards.