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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.
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.
5.50%*
0.05%
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 rate | Max balance for highest rate |
| Virgin Money Boost Saver | 3.60% | $250k |
| ING Savings Maximiser | 3.60% | $100k |
| BOQ Smart Saver | 3.35% | $250K |
| ubank Save | 3.35% | $250k |
| Young adult market leaders | Interest rate | Max balance for highest rate |
| BOQ Future Saver (14-35) | 4.00% | $50k |
| Westpac Spend&Save (18-29) | 3.50% | $30k |
| Great Southern Bank Goal Saver | 2.65% | $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
| Bank | Account | Max rate |
| CBA | GoalSaver | 2.10% |
| Westpac | Life | 2.35% |
| NAB | Reward Saver | 2.25% |
| ANZ | Progress Saver | 1.65% |
Conditions for max rate apply.
Big four bank online saver rates
| Bank | Account | Intro rate | Ongoing rate |
| CBA | NetBank Saver | 2.30% for 5 months | 0.85% |
| Westpac | eSaver | 2.30% for 5 months | 0.85% |
| NAB | iSaver | 1.80% for 4 months | 0.85% |
| ANZ | Online Saver | 1.55% for 3 months | 0.60% |
Compare savings accounts
5.00%*
0.05%
*Deposit $20+ & make 5 purchases on a linked Ev...
- 2024 Award Winner
- Bonus interest with conditions
- App banking
- Online banking
- Linked account required
5.25%
intro 4 months then 3.25%*
Not Applicable
*Deposit at least $50 and make and no withdrawa...
- Bonus interest with conditions
- Intro offer rate
- App banking
- Online banking
5.20%*
2.00%
*Make a deposit and make 5+ purchases on your W...
- 2024 Award Winner
- Bonus interest with conditions
- App banking
- Online banking
- Linked account required
5.50%*
0.55%
*Deposit at least $1000, make 5+ card purchases...
- 2024 Award Winner
- Bonus interest with conditions
- App banking
- Online banking
- Linked account required
Product database updated 28 Apr, 2024
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Promoted savings accounts
Bonus Saver Account
Real Time Rating™
- 2024 Award Winner
- Bonus interest with conditions
- App banking
- Online banking
Maximum rate p.a.
5.00%*
Base rate p.a.
0.05%
Reward Saver
Real Time Rating™
- Bonus interest with conditions
- Intro offer rate
- App banking
- Online banking
Maximum rate p.a.
5.25%
intro 4 months then 3.25%*
Base rate p.a.
Not Applicable
Westpac Life - 18 to 29 years old
Real Time Rating™
- 2024 Award Winner
- Bonus interest with conditions
- App banking
- Online banking
Maximum rate p.a.
5.20%*
Base rate p.a.
2.00%
Savings Maximiser
Real Time Rating™
- 2024 Award Winner
- Bonus interest with conditions
- App banking
- Online banking
Maximum rate p.a.
5.50%*
Base rate p.a.
0.55%
Product data updated on 28 Apr 2024