There are now very few transaction accounts in Australia that pay even 1 per cent in interest without imposing monthly fees or difficult conditions.
None charge a monthly fee. All three pay at least 1.10 per cent in interest, provided you have a minimum balance of anywhere from $1 to $5,000 (depending on the bank).
While there are other everyday bank accounts that pay higher interest rates, they charge monthly fees or require sizeable balances or require sizeable monthly deposits.
There are also some pension bank accounts and student bank accounts that pay higher interest rates without charging monthly fees.
Australia’s inflation rate is currently at 1.9 per cent, so deposits in those Gateway, Bank of Sydney and Macquarie accounts are actually going backwards in real terms.