$0 Account keeping fee
Interest paid on maturity
Up to $5,000,000 can be invested
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Currently, the highest savings account rate you can get (other than kid's accounts) is 5.65% p.a. with the new HomeME savings account by ME Bank. This is a great rate, however there are a few strings attached that may make it difficult to earn this rate.
You need to deposit $2,000 each month, which is significantly higher than most other accounts with similar bonus rates on offer. Plus, this rate is only available on balances up to $100,000 (many other savings accounts pay bonus interest on balances up to $250,000). You also need to make sure your balance is higher at the end of the month than it was at the start.
These conditions could be easily manageable if you have your regular salary deposited into ME, and use the everyday account for your day-to-day spending.
If this account doesn't suit you, here are another 5 top savings rates for July 2023.
|Account||Total interest rate p.a.|
|ME HomeME Savings Account||5.65%|
|Macquarie Bank Savings Account||5.55%|
|ING Savings Maximiser||5.5%|
|Rabobank High Interest Savings Account||5.5%|
|Great Southern Bank Youth eSaver Account (0-17 year olds only)||5.5%|
Term deposits also allow you to earn interest on your cash. Some accounts offer similar rates to high interest savings accounts, with no monthly deposit conditions to meet. If you’re interested in locking your money away for a set period of time and earning a high, fixed interest rate in return, you can check out some leading term deposit rates below.
How do the Big Four banks compare at the moment? Here are the high interest savings account rates currently on offer with the Big Four banks.
|Account||Total interest rate p.a.|
|Westpac Life (18-29s)||5.2%|
|Commonwealth Bank Goal Saver Account||4.65%|
|ANZ Save Account||4.65%|
|NAB Reward Saver Account||4.75%|
There's more to consider than just the high interest rate. Think about the following when you compare accounts:
It's a savings account that pays a higher interest rate than a standard account. Because these accounts offer a higher interest rate, there are usually a few conditions to meet to earn it. For example, you might be required to deposit a minimum amount each month or limit your withdrawals from the account. A regular savings account, in comparison, will offer a lower interest rate on your balance each month, but there usually won't be account conditions to meet.
Yes, now is a great time for people trying to save to open a high interest savings account. Over the last few years savings rates have been at all-time lows, driven by a historically-low cash rate. However the cash rate has been lifted 12 times since May 2022. With the latest May RBA announcement raising the cash rate, it now sits at 4.1%. Because of the higher cash rate, we've seen many savings accounts increase their rates as a result and they're still going up now.
At the start of 2022 there weren't many accounts offering much higher than 1.5% p.a., but now in 2023 there are several accounts paying above 5.00% p.a. or even as high as 5.50% p.a.
You'll notice a few different rates when you compare accounts, here's what they mean:
Here's how you access your money, how interest is applied and the conditions you might need to meet.
High interest savings accounts offer a higher interest rate which is a combination of a bonus interest rate on top of the base interest rate each month that you meet the account conditions. This gives you the chance to earn extra interest each month.
Compound interest allows you to earn interest on your interest, helping your money grow quicker.
Let's say your balance was $10,000 and you earned $100 in interest during the month. The following month, interest would be calculated on your full balance of $10,100, so you'd earn even more interest the second month.
You generally link a savings account to your everyday bank account, usually with the same bank. This allows you to easily move money back and forth from your savings account to your everyday bank account when needed. This is handy, as savings accounts don't come with a debit card to access your money (but bank accounts do).
In exchange for a high interest rate on your savings there are usually a few account conditions to meet. This varies from bank to bank, but most accounts require you to regularly deposit money and keep growing your balance (which is a good thing if you're trying to save!). Some wil also ask you make a set number of transactions from your linked bank account each month or to limit withdrawls from your savings.
Savings accounts all offer variable interest rates. Similar to a variable rate home loan, a variable savings rate means it can change at any time, if the bank decides to do so. The opposite of a variable rate is a fixed rate, which is offered on term deposits. A fixed rate doesn't change and is locked in for a set period of time.
High interest savings accounts typically have no account-keeping fees and no regular charges. The account is designed to help you save money, not get eaten away by fees. However, in order to access the money, you'll need to link the account to an everyday spending or transaction account, which might have fees and charges.
A savings account is one of the safest places to keep your cash. The money in an account with an Australian bank is protected by the Government's bank guarantee scheme. Under this scheme, your deposit up to $250,000 is guaranteed by the Government, even if something were to happen to the bank.
Plus, unlike investing in shares which could see you lose money if the share price falls, the money in your savings account can't fall or go down unless you decide to spend it.
High interest savings accounts offer better interest rates, but with more conditions attached. If you're looking for a set-and-forget option without having to meet any ongoing conditions, a standard savings account still offers some level of interest but without any effort on your end.
Let's take a look at some high interest savings accounts and regular savings accounts from the same bank, so you can see the difference.
|High interest savings account||Standard savings account|
|Westpac Life (under 30s): 5.2% p.a. when you link to a Westpac Choice account, grow your balance each month, keep your balance above $0 and make 5+ transactions/month.||Westpac eSaver: 4.65% p.a. for the first 5 months with no conditions to meet.|
|Virgin Money Boost account (25+ year olds):5.05% p.a. when you link to a Virgin Money Go Transaction Account, deposit $1,000/month and make 5+ transactions/month.||Virgin Money Grow Saver: 2% p.a. each month you make at least 1 deposit and make no more than 1 withdrawal.|
|ING Savings Maximiser: 5.5% p.a. when you link to an ING Orange Everyday account, deposit $1,000/month, make 5+ purchases/month and grow balance.||ING Savings Accelerator: Up to 4.35% p.a. on large balances, with no conditions to meet.|
You can open an account online in a matter of minutes. It's free and easy to do and requires little effort or paperwork. Once you’ve clicked through to the bank's secure application page, you will typically need to provide the following:
Once you've finished the application form and the bank has verified your identity, your account will be opened and you'll be able to start transferring money into it and earning interest.
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