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Based on your details, you can compare the following savings accounts

Calculator Assumptions and Disclaimers

      There are two ways to look at savings accounts:

      1. a place where your salary is paid, to park your money without giving it much thought, or;
      2. a tool that you actively manage as you pursue a specific financial goal.

      A focused and disciplined budget planner is more likely to be a successful saver than somebody who takes a set-and-forget approach to their bank accounts.

      If you pay close attention to your money, or have decided you want to get more serious about your saving, you may want to try our savings calculator.

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

      Most savings accounts let you earn interest on the money you deposit and slowly grow your wealth. A transaction account simply gives you easy access to your funds for everyday spending, such as through online banking or via a debit card.

      What is a savings calculator?

      A savings calculator is an online tool that estimates how fast your savings could grow in a saver account.

      To use our interest calculator, all you have to do is enter the following information:

      • How much you plan to initially deposit in a savings account
      • How much extra you plan to deposit in the account each month
      • How long you plan to keep the money in the account (in months)

      Based on those numbers, the calculator will then estimate:

      • How much you could earn in interest each month, assuming a popular interest rate
      • How much you could earn in total interest after your selected time period has passed
      • Your estimated final balance

      The great thing about a savings calculator is that you can compare different scenarios, and see how your savings could be affected by different deposit sizes and saving periods.

      How to find a savings account

      Your next step should be to research savings accounts. This could be difficult, as there are dozens of banks and other Authorised Deposit-taking Institutions (ADIs) in Australia, offering hundreds of different savings accounts. Fortunately, RateCity has made the process quick and easy with our online comparison tool.

      RateCity can tell you how much interest each savings account could pay, and also other relevant information, such as which accounts charge an account-keeping fee or require a minimum opening deposit. Not every high interest savings account will suit every financial situation.

      Pay close attention to both the ‘base rate’ and the ‘maximum rate’. If these numbers aren't one and the same, then new customers will have to meet certain conditions to earn bonus interest. Otherwise you’ll only receive the lower base rate.

      Sometimes the difference between the base interest rate and maximum interest rate can be as high as two percentage points. Before you enquire about an account with two different rates, make sure you understand exactly how to qualify for the maximum rate with the bonus interest.

      Consider a savings account's other features, benefits, terms and conditions before making your choice. For example, some online saver accounts offer higher interest rates on savings, but may not offer branch access. This may be fine if you do most of your everyday banking online, but you may prefer other options if you prefer to manage your bank accounts in person.

      Tips to boost your savings

      If you earn a regular income, having your pay automatically deposited into your savings account can help to grow your interest faster. Most accounts offer this as a standard feature and there are generally no additional fees involved. Online saver accounts often let you manage everything online via your computer or smartphone.

      If you’re struggling to save, making small irregular deposits into your account can be a great way to start. Although it can be hard, you could try to increase the frequency of your deposits so you can earn extra interest. 

      Remember, if you're not sure about the best way to save or manage your money, or you're looking for some general advice on which financial product to choose, consider contacting a financial counsellor for financial advice.

      Other savings options

      Term deposit

      If you have a specific savings goal you're trying to reach, and know that you may be tempted to dip into your savings account from time to time, you could consider a term deposit account. A term deposit is where you agree to deposit money with an ADI for a fixed length of time, and earn interest on your savings over this term. 

      The more money you deposit, and the longer the savings term you choose, the higher the interest rate you may enjoy. You can't easily access your savings until the end of your term, which may help you make progress towards your savings goal. To work out how much interest you could potentially earn, consider checking out our term deposit calculator.


      If you're saving money for your retirement, consider checking the status of your superannuation fund. Consolidating your super and selecting a fund with fees, charges, and investment options that suit your needs can help make a big difference to your future lifestyle. Making extra superannuation deposits can help to further build this balance.

      Popular savings accounts lenders

      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.

      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.

      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 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.

      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 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.

      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.

      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.

      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.

      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

      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 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 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. 

      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. 

      Who has the highest interest rates for savings accounts?

      As banks frequently change their rates, the most accurate way to know who currently has the highest interest rate is to use a savings account comparison tool.

      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. 

      Do I have to claim interest on my savings account?

      When you lodge your income tax returns, you must include in the documentation all your sources of income, including bank interest. Your bank will report any interest you earn on the funds in your savings account to the Australian Tax Office (ATO). When the ATO then compares this information with your tax returns,  you also need to have mentioned the interest earned. If there is any discrepancy, you’ll receive a letter from the ATO. 

      Avoid this situation by ensuring you receive your bank statement with interest noted. Then declare the interest in your tax returns and pay the tax that’s applicable based on the income tax rate.

      You only need to claim your share of the interest earned for joint accounts. If you manage an account for your child and receive or spend money via this account, you will also need to report any interest earned from said account.

      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.

      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.