Best Regular Savings Accounts
Find the best regular savings accounts. Compare interest rates, fees, features and more from 70+ lenders.
Find and compare some of the best regular savings accounts
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Earn a competitive return on your nest egg with this savings account that also offers branch access and no ongoing fees.
Intro 4 months then 0.35%
Gold Award Winner 2020
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What are the best regular savings accounts on the market? As with all financial products, beauty is in the eye of the beholder.
Everybody is a unique individual with unique financial circumstances and unique preferences. So the best regular savings account for one person won’t necessarily be the best regular savings account for another.
Another important point is that there are dozens of lenders offering hundreds of different savings accounts, so the market is in a constant state of change. In other words, just because you consider a particular product to be the best regular savings account on the market today, doesn’t mean it will retain this title tomorrow.
How to find the best regular savings account
As a result, it’s important to shop around. A quick and easy way to do that is to use an online comparison search tool, such as RateCity’s (see above).
This will allow you to compare savings accounts by interest rates and fees. It will also give you the chance to filter by a range of features, including:
- ATM access
- Branch access
- BPAY facility
- EFTPOS facility
- Internet facility
- Cheque facility
- SMSF availability
Again, the savings account market is in a constant state of change, so market research shouldn’t be a one-off activity. Instead, you should take the time to study the market every year or two. After all, doing an online search is easy, and switching savings accounts is also a relatively straightforward process.
Use a calculator to crunch the numbers
Make sure you use RateCity’s savings accounts calculator as part of your research, because this will clearly reveal how much money you’d be able to save under different savings scenarios.
To illustrate the point, imagine a hypothetical consumer named Peter, who decides to conduct his own search for the best regular savings account. Peter currently has a savings account that pays 1.5 per cent interest. He opened the account 12 months ago and has built up his savings to $10,000.
After doing some online research, Peter finds a savings account that pays a maximum interest rate of 3 per cent – provided he deposits at least $200 per month and makes no withdrawals. Peter is confident he can meet these conditions, so he moves his $10,000 to the new savings account.
Here’s how his balance would compare under the old account and new account:
|Year||Old account||New account||Difference|
How the government protects savings accounts
During the Global Financial Crisis, people started worrying about the stability of local lenders following a series of high-profile international bank collapses.
The federal government responded in 2008 by creating the Financial Claims Scheme, which protects the first $250,000 of each individual deposit at each bank, building society and credit union incorporated in Australia. So in the unlikely event of a collapse, the government would reimburse you for up to $250,000 if you lose the money in your savings account.
Please note that the Financial Claims Scheme can only be activated by the government – and this would only happen if the lender failed and could no longer meet its financial obligations.
Property Personal Finance Writer
A property and personal finance writer, Nick Bendel covers property, loans, credit cards, superannuation, and other bank products. Nick has previously written for The Adviser, Mortgage Business, Lifehacker, Business Insider, Yahoo Finance, and InvestorDaily, and loves getting elbow-deep in the latest ABS, APRA and RBA data.
Today's top savings accounts
Bonus Saver Account
*Bonus interest is paid when a customer has made an eligible deposit of $20 into the Bonus Saver account in the calendar month and made 5 eligible Visa card purchases on the linked Everyday or Glide account in the calendar month
- Branch access
- No ongoing fees
- No minimum balance
Frequently asked questions
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.
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.
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.
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.
Can you set up a savings account online?
Yes. Several large and small banks offer online applications for savings accounts, and there are also online-only financial institutions to consider.
Online-only savings accounts are often less expensive than other savings accounts, though they may not offer the same flexibility, features, or face-to-face service as more traditional savings accounts.
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.
What is the interest rate on savings accounts?
As banks frequently change their rates, the most accurate way to look at interest rates on savings accounts is to use a savings accounts comparison tool. When you look at the savings rate check what the maximum and minimum rates are. Often banks will offer you a promotional rate for the first few months which is competitive, but then revert back to a base rate which can sometimes be less than inflation. Ongoing bonus rates are often a safer bet as they will keep rewarding you with the maximum rate, provided you meet their criteria
Can you direct deposit to a savings account?
Yes. You can make one off payments or set up regular direct deposits into a savings account. This can be organised easily through online banking or by making deposits in a branch. Talk to your lender to find out the easiest way for you to set up direct deposits.
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
How does interest work on savings accounts?
The type of interest savings accounts accrues is called compound interest. Compound interest is interest paid on the initial deposit amount, as well as the accumulated interest on money you have. This is different from simple interest where interest is paid at the end of a specified term. Compound interest allows you to earn interest on interest at a higher frequency.
Example: John deposits $10,000 into a savings account with an interest rate of 5 per cent that he leaves untouched for 10 years. At the end of the first year he will have $10,512 in savings. After ten years, he will have saved $16,470.
Who has the highest interest rates for savings accounts?
Can I overdraft my savings account?
A lot of savings accounts won’t let you overdraw. Some will allow this feature but you’ll need to apply first. It’s best to read the fine print and check with your lender whether this is a feature they offer. It can be a helpful addition, but as your lender can charge you a fee as well as interest for going into negative numbers, it’s best to avoid overdrafting when possible.
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.
What is a good interest rate for a savings account?
A good rule of thumb to keep in mind with savings accounts is to look for a rate that is higher than the CPI inflation rate. This number is constantly changing, so check the Reserve Bank of Australia’s page. If you aren’t earning interest above this then the value of your money will go backwards over time.
How can I get a $4000 loan approved?
While personal loans and medium amount loans don’t offer guaranteed approval, there are steps you can take to help increase the likelihood of your application being approved, including:
- Fulfilling the eligibility criteria (providing ID, proof of residency, proof of income etc.)
- Checking your credit history (you can order one free copy of your credit file per year, and make sure that there aren’t any errors that may be bringing down your credit score)
- Comparing carefully before applying (making multiple loan applications can mean having your credit checked multiple times, which can look bad to some lenders and reduce your chances of being approved by them)