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Savings account interest rates hit 4%: where to get a high interest savings account

Alex Ritchie avatar
Alex Ritchie
- 4 min read
Savings account interest rates hit 4%: where to get a high interest savings account

Savings account interest rates have just breached the 4% mark for the first time in seven years, following the fifth consecutive hike to the cash rate in September. There are six providers in Australia now offering savings account interest rates above 3%.

Bank of Queensland (BOQ) has announced it will be offering a highly competitive 4% interest rate for its Future Saver Account, effective 20 September. This rate is available to younger Australians, aged 14-35, for balances up to $50,000.

Bank of Queensland
Future Saver Account (Under 35)
  • Bonus interest with conditions
  • Linked account required

Young adults can enjoy one of the most competitive interest rates on a savings account for their nest eggs.

Maximum rate p.a.

5.50%*

Base rate p.a.

0.05%

More detailsclick for more details

BOQ is increasing its competitive account by the full 50-basis point September cash rate hike. This is the new highest savings account rate on the RateCity database. Only a few months ago, most Australians were lucky to find a savings account rate starting with a ‘1’.

This announcement officially brings the young adult savings account interest rate race into the 4% range, as providers passing on cash rate hikes to their customers fight it out for market share. It’s likely that with the projected cash rate hikes for the next two years, more providers will be lifting their rates into the 4% - 5% range soon.

Now, thanks to five increases to the cash rate by the Reserve Bank of Australia – four of which being double-hikes of 50-basis points – Australian savers may finally see a decent return on their nest eggs after years of low rates.

Who is offering high interest savings accounts?

RateCity has crunched the numbers on a customer with a savings account balance of $10,000, making regular monthly deposits of $250, now earning a rate of 4%. After 12 months, and assuming all conditions were met, this young adult customer would earn $463 in interest. This does not factor in future rate fluctuations.

It’s not just BOQ that’s rolling out competitive interest rates on its savings products. However, it’s worth keeping in mind that many of these higher rates are offered when customers meet certain conditions, like a minimum spend each month, or not making any withdrawals. Be sure to read the fine print before considering these products to ensure you can meet any account conditions.

With that in mind, here are some of the adult and young adult market-leading savings accounts, as per the RateCity database:

Bonus saver accounts: maximum interest rates

All adult market leaders Interest rateMax balance for highest rate
Virgin Money Boost Saver3.60%$250k
ING Savings Maximiser3.60%$100k
BOQ Smart Saver3.35%$250K
ubank Save3.35%$250k
Young adult market leaders Interest rateMax balance for highest rate
BOQ Future Saver (14-35)4.00%$50k
Westpac Spend&Save (18-29)3.50%$30k
Great Southern Bank Goal Saver2.65%$50k

Source: RateCity.com.au. Conditions for max rate apply. ubank rate effective 1 Oct.

Comparatively, the big four banks are still offering adult customers interest rates below 3%. The highest rate offered by a big four bank for all adults is 2.35% from Westpac for its Life account, and the lowest is 1.65% from ANZ for its Progress Saver. For context, the Australian cash rate currently sits at 2.35%, so some customers may be wondering why their savings rate is below this benchmark.

That being said, Westpac still offers a higher rate of 3.5% for adults aged 18-29 from its Spend&Save account.

Big four bank bonus saver rates

BankAccountMax rate
CBAGoalSaver2.10%
WestpacLife2.35%
NABReward Saver2.25%
ANZProgress Saver1.65%

Conditions for max rate apply.

Big four bank online saver rates

BankAccountIntro rateOngoing rate
CBANetBank Saver

2.30% for 5 months

0.85%

WestpaceSaver

2.30% for 5 months

0.85%

NABiSaver

1.80% for 4 months

0.85%

ANZOnline Saver

1.55% for 3 months

0.60%

Compare savings accounts

Product database updated 16 Jun, 2024

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