The Reserve Bank of Australia (RBA) lifted the cash rate to 4.35% in November. There are several banks offering interest rates above 5.50%, although some conditions may apply to earn the highest rate.
Australia’s central bank has raised rates thirteen times since May 2022, only pausing in April, July, August, September and October to evaluate the economic landscape.
Savings rates are at some of the highest levels in more than a decade. This means that there are several options for individuals looking to earn competitive interest on their savings.
At the time of writing, RateCity lists seven different banks offering ongoing rates of 5.50% or higher:
Bank | Highest Savings Interest Rate | Balance for max rate |
|---|---|---|
5.60% | Up to $250,000 | |
5.50% | No max | |
5.50% | Up to $25,000 | |
5.50% | Up to $100,000 | |
5.50% | No max | |
5.50% | No max | |
5.50% | No max |
Source: RateCity.com.au data accurate as of 06/09/20223. Monthly conditions may apply for max rate.
It’s sensible to consider more than just the maximum interest rate. Examine savings account fees, minimum and maximum balances and other features - such as introductory and bonus interest terms - to find an account that suits your financial goals.
However, it's worth noting that while some banks offer appealing interest rates, there may be specific conditions attached to earning the highest rate. These conditions could include maintaining a minimum balance in the savings account, linking the savings account to a transaction account, or making regular deposits.
Your savings are an essential safety net that can help you in emergencies, enjoy luxuries, and live a comfortable life when you’re no longer working. But working out how much savings you really need will depend on multiple factors.
There is no single best savings account as everyone’s needs are different. To get a better idea of which accounts may provide the most value for your money, you could consider comparing their Real Time Ratings™, to evaluate interest and flexibility scores.
