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High-interest savings accounts come with strings attached

High-interest savings accounts come with strings attached

Lenders are asking customers to jump through hoops if they want to earn even moderate rates of interest on their savings accounts.

RAMS is leading the way with high-interest savings accounts in Australia, offering a maximum rate of 3.00 per cent for its Saver Account product (see table below).

However, to earn that rate, you have to deposit at least $200 per month, make no withdrawals in that month and keep your balance between $200 and $500,000. Otherwise, you earn the base rate of just 1.35 per cent.

UBank pays a maximum rate of 2.87 per cent for its USaver with Ultra – provided you deposit at least $200 per month and keep your balance under $200,000. Otherwise, the base rate of 1.81 per cent applies.

ME Bank has a savings account with a base rate of 1.30 per cent and a maximum rate of 2.85 per cent.

Teachers Mutual Bank and UniBank both have savings accounts with a base rate of 1.00 per cent and a maximum rate of 2.81 per cent.

Australian Unity offers a base rate of 1.20 per cent and a maximum rate of 2.80 per cent, while ING offers a base rate of 1.00 per cent and a maximum rate of 2.80 per cent.

Queensland Country Credit Union and CUA both have savings accounts with a maximum rate of 2.75 per cent – but Queensland Country’s base rate is 1.75 per cent, while CUA’s is 0.25 per cent.

LenderProductBase rateMax. rateHow to get max. rate
RAMSSaver Account1.35%3.00%Deposit $200/month; make no withdrawals; keep balance between $200 and $500,000
UBankUSaver with Ultra1.81%2.87%Deposit $200/month; keep balance under $200,000
ME BankOnline Savings Account1.30%2.85%Make one weekly tap-and-go payment with Everyday Transaction Account debit card; keep balance under $250,000
Teachers Mutual BankMighty Saver1.00%2.81%Deposit $10/month; make no withdrawals
UniBankMighty Saver1.00%2.81%Deposit $10/month; make no withdrawals
Australian UnityActive Saver1.20%2.80%Deposit $250/month; make no withdrawals; keep balance under $500,000
INGSavings Maximiser1.00%2.80%Deposit $1,000/month; make five monthly payments with Orange Everyday debit card; keep balance under $100,000
Queensland Country Credit UnionStar Saver1.75%2.75%Keep balance under $5,000
CUAeSaver Boost0.25%2.75%Deposit $250/month; make no withdrawals; keep balance under $500,000

The high-interest savings account that pays the highest interest rate isn’t necessarily the best savings account for every individual.

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This article was reviewed by Personal Finance Editor Alex Ritchie before it was published as part of RateCity's Fact Check process.

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