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Compare high interest savings accounts
Find high-interest savings accounts with rates up to 5.45%. Compare interest rates, fees, and features to find a suitable savings account for you.
80+ savings account providers in RateCity’s database
280+ savings account products in RateCity’s database
Updated on
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Our team of savings accounts research experts evaluates savings accounts for value (including interest rates and features), offering detailed ratings to aid your comparison.
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Our seasoned editorial team has extensive experience in financial comparisons, aiming to simplify complex terms into useful information for Australians.
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We review and rate savings accounts from numerous providers, offering a wide selection of savings accounts for informed decision making.
What’s new in savings accounts in December 2024?
Three out of Australia’s big four banks are now forecasting that the Reserve Bank of Australia (RBA) will keep the national cash rate higher for longer. While previously the big four were predicting a February 2025 cut, now the majority are now leaning towards a later cut in May 2025, due to economic indicators that inflation could prove stickier than previously expected.
While savers may expect that the interest rates on their savings accounts are likely to also remain steady for longer, that may not necessarily be the case. Some banks and Authorised Deposit-taking Institutions (ADIs) have already begun cutting interest rates on savings accounts in anticipation of a future rate cut.
Remember that there's more to a savings account than just the interest rate it offers. If you plan to switch to a savings account with a better interest rate in the new year, be sure to compare the available options and also consider any fees, features or other benefits that could help to indicate its value for your money.
Highest ongoing savings rates
Excludes kids and young adult accounts
Bank and account | Max rate | Base rate | Balance cap for max rate | Max rate Conditions |
Rabobank High Interest Savings Account | 5.60% | 4.35% | $250K | Intro 4 months then 4.35% |
BOQ Future Saver Account (Under 35) | 5.50% | 0.05% | $50K | Deposit at least $1000 and make 5 or more eligible transactions each month |
MOVE Bank Growth Saver | 5.50% | 0.10% | $25K | Deposit $200 and make no withdrawals in savings account. |
ING Savings Maximiser | 5.50% | 0.55% | $100K | Deposit $1K and make 5+ eligible transactions + grow savings balance |
ubank High Interest Save Account | 5.50% | 0.00% | $100K | Deposit $500 into ubank savings or transaction account |
Source: RateCity.com.au
What is a high-interest savings account?
A high interest savings account is a type of savings account offered by banks and other Authorised Deposit-taking Institutions (ADIs) that typically provides a higher interest rate than traditional savings accounts. These accounts are designed to help savers grow their savings faster by earning a higher rate of interest on their deposited funds.
Whether your saving goal is a house deposit, an investment, or a family vacation, high-interest savings accounts present a straightforward, low-risk strategy for growing your savings through earning interest.
When you’re looking for the best savings account to suit your needs, it's essential to look for more than just the highest interest rates. Consider the broader picture, including each account's fees, terms and conditions. A comprehensive savings account comparison can help you find an account that suits your saving strategy.
What are the interest rates on savings accounts?
Savings account interest rates can be divided into three types:
- Base rate: The minimum interest you’ll receive on savings deposited in the account.
- Bonus rate: Extra interest you may receive if you fulfil a bank’s terms and conditions, such as making no withdrawals in a month, or depositing more than a minimum amount per month.
- Introductory rate: A higher interest rate you’ll receive for a limited time after opening the savings account, after which you’ll revert to the base rate.
While the savings accounts offering the highest interest rates might initially seem the most attractive, these accounts may not always be the best fit for your specific needs. For example, if you won’t be able to comfortably fulfil an account’s minimum deposit requirements, you may not receive its higher bonus interest rate. Identifying an account that offers competitive interest rates and aligns with your savings habits and goals is key.
Benefits of a high interest savings account
Opening a high-interest savings account may have several benefits, such as:
A higher interest rate
A higher interest rate can help your money grow faster by paying you highly competitive rates compared to transaction accounts that don't pay much (or any) interest.
An incentive to save
Some banks require you to deposit money regularly into your account and maintain a minimum balance to earn a higher interest rate. This could act as an incentive for some individuals to save money. But it's also important to check whether you can afford to make the required minimum monthly deposits to earn the bonus interest.
Alternatively, you can also find savings accounts with no monthly minimum deposit. While you may not earn bonus interest with such an account, it could still encourage you to build a savings habit by letting you see your deposit grow with interest earnings over time.
No account keeping fee
Some high-interest savings accounts don't charge any account keeping fees. However, if you need access to ATM withdrawals with your account, you might have to pay a fee. Alternatively, you may consider linking up your savings account with an everyday bank account to access your savings, but there might be account keeping charges applicable on the transaction account.
Fast-tracking your savings goals
If you've set yourself a financial goal, a high-interest savings account could offer the ideal path to realise it. Depending on the account type you choose and the kind of restrictions you're comfortable with, you could even qualify for a bonus interest rate and speed up your journey.
Easy access to your money
A term deposit may lock in your savings to help keep them secure, but you won't have any access to your money for the duration of the deposit. The lack of a lock-in period on high-interest savings accounts allows you to access your money or move it into other investments whenever you prefer.
Security of funds
If you're worried about the safety of your funds, remember that bank deposits in Australia are covered under the government guarantee scheme. Your savings deposited with banks and other Authorised Deposit-taking Institutions (ADIs) are insured by the Australian government for a maximum of $250,000 per person, per institution.
What types of savings accounts offer higher interest rates?
1. Introductory savings accounts
These savings accounts typically offer a higher rate, sometimes called a promotional rate, for the first few months after you open the account, after which you earn interest at the base rate. Consider checking the difference between the promotional and base rates before opening an account.
2. Conditional savings accounts
These savings accounts require you to meet specific conditions to earn a bonus or higher interest rate on your savings, such as maintaining a minimum balance, making regular deposits, making few or no withdrawals in a calendar month, and so on.
3. Online savings accounts
Online savings accounts are typically operated through the provider's internet banking site or mobile banking app. Some purely digital providers may also offer high-interest online savings accounts with no fees. That said, the lack of a physical location limits your options for contacting the bank.
4. Children's savings accounts
Children's savings accounts can help teach your child basic financial literacy in a digital age. Kids can gain an understanding of the banking system and learn how to save money, especially when paired with educational savings apps. Compared to adult accounts, children's savings accounts generally have higher interest rates, but it’s important to also check the fees and any other terms and conditions.
Both savings accounts and term deposits are protected under the Financial Claims Scheme. The federal government will guarantee up to $250,000 for each account holder at each licenced bank, building society or credit union incorporated in Australia.
How to compare savings accounts
With numerous accounts offering high interest rates, here are some practical tips to help you make an informed decision when choosing the best account for your savings goals.
How can you find the best savings account interest rates?
Comparing savings accounts across a variety of banks can increase your likelihood of identifying one with an attractive interest rate and features that meet your needs. Yet, it's essential to look further than just the rates themselves and consider any specific conditions tied to securing the higher rate.
Ensure you understand these terms to decide whether you can meet them consistently. Additionally, be mindful of any fees associated with the savings account to prevent them from diminishing your accrued interest.
Factors to consider when choosing a good high interest savings account
When comparing high interest savings accounts, there are several key factors to consider to ensure you choose the best account for your financial needs:
Interest rates | If you're looking to earn more interest over the short term, an account offering a promotional rate might work for you. However, if you want to grow your savings consistently over the long run, you may want to look for a conditional savings account with a suitable set of restrictions. |
Minimum balance requirements | Some high interest savings accounts may require you to maintain a minimum balance to qualify for the advertised interest rate. Be sure to assess whether the minimum balance aligns with your savings goals and financial situation. |
Fees and charges | Many savings accounts don't charge any monthly account fees, especially online savings accounts. Make sure you check the account terms to see which fees are permanently waived and which may apply to some transactions. |
Accessibility and convenience | You may be able to access money in your savings account via online banking, mobile apps, or ATMs. If you find online savings accounts convenient, you may also be able to benefit from a higher interest rate. However, you may not have direct access to bank officials at a branch if you need to resolve any account-related issues. |
Account features and benefits | Some high interest savings accounts may offer additional features such as bonus interest promotions, linked transaction accounts, or rewards programs. Consider if these extra benefits may align with your savings strategy. However, these features may be associated with some conditions. You may lose out on earning interest at a higher rate if you make too many withdrawals from a conditional savings account. You could consider dividing your money between savings and transaction accounts if you anticipate withdrawing money often. |
How a variable cash rate can affect your savings | High-interest savings accounts often come with variable interest rates, which can change based on the market. Any change in the Reserve Bank of Australia's cash rate can influence the interest rate offered to you. If you prefer greater certainty around your interest earnings, you could consider opening a high-interest term deposit account. |
What other savings options are available?
The main benefits of a savings account are simplicity and low risk. You're not investing anything, so your money can simply sit in the account and earn interest. It's also safer than hiding cash, gold or other material goods under your mattress, as it can't be easily stolen or damaged.
Another low-risk option is to park your savings in a term deposit. These are similar to savings accounts; however, once you've deposited your money, you can't easily withdraw the funds until the end of a fixed term. The interest rates are fixed in advance, so it's simpler to calculate the interest you'll earn over time.
What’s the difference between savings accounts and term deposits?
If you're seeking a relatively safe option to grow your money, savings accounts and term deposits are two popular choices. While the former provides flexibility, the latter offers certainty.
For example, with a savings account, you can access your funds when needed, which could make it a handy option for short-term savings goals or as an emergency fund. However, the interest rates on savings accounts are variable, meaning they can fluctuate based on market conditions or changes in the Reserve Bank's cash rate.
In contrast, term deposits offer a fixed interest rate over a predetermined period, ranging from a few months to up to five years. This fixed rate provides the certainty of knowing exactly how much interest you will earn by the deposit's maturity, making term deposits suitable for long-term financial planning where immediate access to the funds is not required. Just keep in mind that term deposits often pay simple interest rather than compound interest, which could affect how quickly you can grow your wealth.
Term deposits can be a competitive option for anyone prone to dipping into their savings, as you can lock away your money to earn interest at a fixed rate, making slow and steady progress towards your savings goals. While it is possible to end your term deposit early to access your money if you need it, you'll likely need to provide plenty of advance notice (often at least a month), may miss out on interest income, and may also need to pay an early withdrawal fee.
Choosing between a savings account and a term deposit depends on your financial goals and whether you need to access your money in the short term. Consider comparing savings accounts and term deposits at RateCity to find the most competitive rates and terms available. RateCity provides up-to-date information and tools to help you make an informed decision that best suits your savings strategy.
How to open a savings account
Opening a savings account is straightforward and isn't likely to take up much of your time. Once you have found an account suitable for you, all you need to do is contact your bank via phone or visit a branch to begin the process. Some banks also let you open an account online by filling out an online application supported by copies of one or more of your primary documents.
If you're looking to open a new account or planning to move your savings to another bank, it might be worth comparing high-interest savings accounts from different providers to find a competitive interest rate. Here are a few points worth comparing alongside the interest rates when searching for a suitable account to grow your savings:
- Some banks may offer high interest rates but require you to meet some tough conditions to earn that interest. For instance, you may be required to deposit a minimum amount each month to earn the high rate, and it's worth checking whether you can afford it or not.
- If you open an account with a high introductory rate, you'll only earn bonus interest for a short period, after which your interest rate will revert to a lower base rate.
- There are some banks that require you to have a transaction account with them to open a savings account. While savings accounts don't usually charge a fee, it's worth checking the fees and costs you need to pay for a transaction account so it doesn't eat into your savings.
Overall, a high-interest savings account could help you grow your savings without much extra effort on your part. But it's worth comparing other savings options, like term deposits, before deciding on a savings method that fits your money attitude and goals.
Can you have a joint account for your savings?
Many banks offer joint savings accounts, where two or more people have access to a common bank account. Joint accounts are often used by people in romantic relationships, although they can also be used by friends or relatives wanting to pool their savings to reach a shared goal.
It's important to only open a joint savings account with people you trust, as they will be able to withdraw any money you deposit in the account.
You can open a joint savings account online in just a few minutes, or by visiting a bank branch. In either case, you'll need to provide identification and contact details for both parties, as well as your tax file numbers if you don't want to be taxed at the maximum rate. Just fill in the application and submit it to the savings account provider of your choice.
Making any investment work for you can require taking a well-informed, smart approach and thinking about the long term. For a savings account, you may have to stick to the account terms diligently in order to enjoy the maximum bonus interest rate, but you also have to decide whether to move your money into other investment options. For instance, you could save up a certain amount and use it to pay the deposit on a home loan. Alternatively, you could set aside a part of your savings for trading in the stock market.
Saving up money need not always be an investment - you may want to put some money aside for emergency expenses such as hospitalisation or house repairs. You could also accumulate a vacation fund or a nest egg for your retirement.
Regardless of your reason for saving, you'll need some financial discipline to keep depositing funds regularly and earn the maximum interest possible. Also, remember that even the best high-interest savings account may not always be the most suitable for your needs, and you should compare different accounts periodically to see if you can save more by opening a different account.
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^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, target market determination fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.