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Pros and cons

  • No monthly fees
  • Maxi Saver offers bonus interest for only three months

Bank of Melbourne savings accounts rates


Savings account interest calculator

Thinking about taking out a savings account with Bank of Melbourne? Use our savings account calculator to see how much you can earn under different investment scenarios. You can also see how Bank of Melbourne savings accounts compare with other options.

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A savings account is still one of the preferred mechanisms for storing cash. It’s a type of bank account that offers a higher interest rate than a transaction account, and charges fewer fees.

This is because it’s designed to help you save, not spend. So a savings account offers incentives for you to leave your money alone. Transaction accounts, by comparison, are designed for frequent use.

A transaction account caters for your day-to-day money needs, and thus comes with a bank card for ATM and EFTPOS access. For this service, you will generally pay more fees and earn less interest.

Just about every financial institution offers savings accounts, however not all savings accounts are created equal. Bank of Melbourne offers a range of savings accounts suited to different goals.

The type of savings account you choose is dependent on your how you wish to manage your money. For example, you might want a savings account that lets you withdraw funds at any time.

Or you might want a savings account that returns a higher interest rate for not withdrawing funds. As with all financial products and services, reading the fine print will help with your decision.

How do I choose a savings account?
The type of savings account you choose will be dependent on your financial situation. However, if you’re in the market for a savings account, Bank of Melbourne makes it easy to decide.

By jumping onto the website, you can browse the current range of savings accounts available. Different types of savings accounts will offer a different rate of interest based on your choice.

As previously mentioned, a term deposit (for example) generally offers a higher interest rate because you cannot withdraw funds for a specific period of time.

If you’re in a position to lock your money away and not touch it, this could be an attractive option. Or you might simply want a savings account that pays some interest, but you want to regularly withdraw from it. 

The published criteria for each type of savings account will explain the requirements, along with providing you with the terms and conditions. So read through these too!

Keep in mind that interest rates will always vary, so the interest rate offered today might be different in a month or year.  

How do I apply for a savings account?
To open a savings account with the Bank of Melbourne you will need to be at least 14 years old. So, if you’re a savvy tweenager, you will need assistance from a carer or parent.

You will need to have your tax file number on hand as well as identification such as a driver’s licence, Medicare card, birth certificate or passport.

What are the benefits of a Bank of Melbourne savings account?
The obvious benefit of opening a savings account is that you get to earn interest (more money) from what you’ve saved. How much you can earn will depend on whether the savings account has a maximum deposit limit or not.

Another reason to open a savings account – versus leaving your money in a transaction account – is the money you could save on fees and charges. This may not seem like much money – a few dollars here and there and a monthly account-keeping fee – but they can be avoided via a savings account.

As a Bank of Melbourne savings account holder you also get peace of mind knowing that your money is protected by law. The federal government guarantees deposits up to $250,000 per account-holder under the Financial Claims Scheme.

Other benefits of a Bank of Melbourne savings account include a handy banking app, so you can make deposits and check balances from your phone. Putting your money into a savings account also makes it easier to manage.

You can deposit funds at any time, access funds when you need to (whilst aiming to stick to a savings plan), and earn additional funds from your principal. A hidden benefit is the fact that your money is harder to access when in a savings account.

You can opt not to have a bank card for your savings account too, which is advantageous if you can’t resist dipping into your funds for impulsive splurges. 

Are there alternatives to a savings account?
Savings accounts are a safe and secure way of storing your money so that you don’t spend it and it grows in value (via interest). Alternatives to savings are investments such as home loans or shares.

However, because this is investing – rather than saving – there are more risks associated which could result in a loss of funds too.

You could opt to hide your money somewhere, which would not generate any interest and you might forget where it is.

Learn more about savings accounts

How to make money with a savings account?

Savings accounts make you money by earning interest on your savings. The more money you deposit, the longer you leave it in the account, and the higher the account’s interest rate, the more interest you’ll be paid by the bank or financial institution, and the more your wealth will grow.

To make sure your savings account makes money and doesn’t lose money, it’s important to maintain a large enough minimum balance that the annual interest earned exceeds any annual fees charged on the account.

What is an ANZ locked savings account?

An ANZ locked savings account locks your money and prevents you from spending. You may use a standard savings account as the account where your salary is deposited. You can then withdraw funds when needed, but aren’t able to make purchases with it. However, this account may not grow much as the continual withdrawing of funds will limit the interest you can earn.

With a locked savings account in ANZ, you know your savings will grow because you can’t access the money. You can also qualify for a bonus when you deposit at least $10 per month and don’t make any withdrawals. To help you with this further you can set up an automatic transfer from your regular ANZ savings or transaction account so you don’t forget to make a monthly deposit.

Your ANZ locked savings account offers you a base interest rate of 0.1 per cent per annum plus an additional bonus interest of 0.49 per cent per year. The interest is calculated daily and credited to your account on the last working day of the month.

What is a savings account?

A savings account is a type of bank account in which you earn interest on the money you deposit. This makes it one of the easiest and safest investment tools.

Should I open a Commonwealth locked savings account?

If you have trouble saving money, a Commbank locked savings account could be a potential solution. A locked savings account won’t let you make withdrawals and as such, it can help you grow your savings balance if you keep topping it up. 

The Commonwealth locked savings account advertises high-interest rates and minimal maintenance fees, along with a host of other incentives that will encourage you not to touch the money. 

The account offers a higher interest rate for each month that you make limited or no withdrawals, as well as regular deposits. 

To qualify for a Commonwealth locked savings account with the advertised features, you will need to fulfil specific criteria such as:

  • Depositing a fixed minimum amount into the account every month.
  • Making a fixed number of deposits each month.
  • Making a minimum or no withdrawals each month.
  • Maintaining a minimum account balance.

Can you have multiple ING savings accounts?

Yes, you can open up to nine accounts with ING at any particular time. If you’re saving money for various goals, such as buying a car or taking a holiday, you can name each of your multiple ING savings accounts differently.

To get a Savings Maximiser account, you’ll need to deposit more than $1000 every month and make at least five additional purchases. If you also want to grow your savings, from 1st March 2021, you can earn up to 1.35 per cent per annum variable interest on one account with a balance of up to $100,000 when you also maintain an Orange Everyday account.

With ING, multiple savings accounts can help keep track of all your savings goals. All the accounts offer flexible withdrawals where you can withdraw as low or as high as you want without impacting your earning interest rate. However, you can only earn the bonus interest on one account. To apply for a Savings Maximiser account, you can visit ingdirect.com.au.

How to open a savings account for my child?

Some banks and financial institutions allow parents to open a bank account for their child as soon as it is born, and start depositing funds to go towards the child’s future.

Children’s savings accounts generally don’t have fees, and are structured to help develop positive financial habits by limiting withdrawals, encouraging regular deposits, and earning interest on the savings, similarly to standard savings accounts.

Should I open multiple savings accounts with UBank?

UBank offers customers an opportunity to make the most of their savings by opening multiple savings accounts. Having multiple savings accounts with UBank may be ideal for savers tracking different goals in separate accounts. 

It’s important to note that to earn bonus interest, you will still need to meet the conditions of the UBank savings account every month. If you don’t make these deposits, you will receive the standard interest rate, which is typically lower. 

Keep in mind that you won’t earn bonus interest on your UBank savings account in the month an account is opened and if you open multiple savings accounts with UBank, you'll start earning any bonus interest the following month. 

It's also not yet known how long the special interest rate will hang around for, so please check with your bank for more information. 

What are the requirements of an ING Bank locked savings account?

An ING bank locked savings account - also called a term deposit - offers you interest in exchange for holding your money for a period of time.

The terms offered include as little as 90 days or as long as two years. Generally, the longer you lock your money away, the higher the rate of interest. 

The minimum deposit amount for an ING locked savings account is $10,000. 

To be eligible to apply, you must: 

  • Be an Australian resident for tax purposes
  • Be aged 13 years or older
  • Hold the account for personal use (ING offers business term deposits as a separate product). 


Can you set up direct debits from a savings account?

It’s not usually possible to set up a direct debit from your savings account to cover ongoing expenses or bills, as savings accounts are structured around growing your wealth by earning interest on regular deposits, and discouraging withdrawals.

Some transaction accounts allow you to set up direct debits and also earn interest, though you may not enjoy as much flexibility as a dedicated transaction account, or get as high an interest rate as a dedicated savings account.

How much money should I have in my savings account?

A good rule of thumb when working out a minimum balance for your savings account is to make sure that you’ll earn more in annual interest on your savings than what you’ll be charged in annual fees.

If you’re saving with a specific goal in mind, prepare a budget so the interest you earn on your deposits will help you efficiently reach this goal. Online financial calculators may be helpful here.

Can you have a joint savings account?

Yes. Joint savings accounts can be useful for two or more people wanting to combine their savings to meet shared financial goals, including spouses, flatmates and business partners.

Some joint savings accounts require all parties to sign before they can access the money. While less convenient, this extra security can help encourage all parties to meet their shared financial goals.

Other joint savings accounts allow any of the account holders to access the money. These accounts can be convenient for financially responsible couples that trust one another implicitly. 

What is a Westpac locked savings account?

The Westpac locked savings account (also known as "Westpac Life") can help customers reach savings goals faster through bonus interest. Customers receive 0.2 per cent standard base interest with a variable bonus rate of 0.35 per cent when the closing balance at the end of the month is higher than the opening balance.

There are some conditions to earn the bonus interest on Westpac's locked savings account, though. First, you’ll need to increase the balance each month either through a deposit or not making any withdrawals, and then link it to a Westpac Choice account and make at least five eligible payments using your debit card. Please consult your bank as to what an eligible payment is. 

What are the two types of NAB locked savings accounts?

With a locked savings account in NAB, you can earn bonus interest and learn financial discipline. NAB offers two types of locked savings accounts, each with their own terms and conditions.

The NAB Reward Saver account pays a variable base interest rate of 0.05 per cent per annum and a bonus interest of 0.55 per cent. You’re eligible for the bonus if you make a minimum of one deposit on or before the second last banking day and have no withdrawals in the month.

Meanwhile, the NAB iSaver account provides 0.05 per cent as the standard base interest rate and a fixed bonus margin of 0.55 per cent during the first four months from the date of opening the account. You can park your cash in the account and enjoy unlimited monthly transfers between linked daily bank accounts without impacting the interest rate.

Do banks run credit checks on savings accounts?

When you apply to open a new savings account, some providers may conduct a credit check, meaning that they will ask a credit bureau for your credit history. This isn’t always the case on savings accounts though and depends on the provider, as you aren’t borrowing money. 

As you are opening a savings account and not borrowing funds, this credit check is considered a soft inquiry and should not affect your credit score. If the bank has run the credit check, you can often still open a savings account even if you have a poor score, provided you meet other requirements. 

How do I open a savings account?

Opening a savings account is a relatively simple process. If you’ve found an account with a suitable interest rate, you’ll just need to get in contact with your chosen lender via a branch, phone call or hop online to begin the process. 

You may be required to provide:

  • Personal details, including identification (driver’s license, passport etc.)
  • Tax file number
  • Employment details