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.
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.
|Lender||Product||Base rate||Max. rate||How to get max. rate|
|RAMS||Saver Account||1.35%||3.00%||Deposit $200/month; make no withdrawals; keep balance between $200 and $500,000|
|UBank||USaver with Ultra||1.81%||2.87%||Deposit $200/month; keep balance under $200,000|
|ME Bank||Online Savings Account||1.30%||2.85%||Make one weekly tap-and-go payment with Everyday Transaction Account debit card; keep balance under $250,000|
|Teachers Mutual Bank||Mighty Saver||1.00%||2.81%||Deposit $10/month; make no withdrawals|
|UniBank||Mighty Saver||1.00%||2.81%||Deposit $10/month; make no withdrawals|
|Australian Unity||Active Saver||1.20%||2.80%||Deposit $250/month; make no withdrawals; keep balance under $500,000|
|ING||Savings Maximiser||1.00%||2.80%||Deposit $1,000/month; make five monthly payments with Orange Everyday debit card; keep balance under $100,000|
|Queensland Country Credit Union||Star Saver||1.75%||2.75%||Keep balance under $5,000|
|CUA||eSaver Boost||0.25%||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.