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Savings accounts

How to find the best savings account for you

Page reading time: 2 minutes

Savings accounts help your money grow faster by offering a higher interest rate than everyday transaction accounts. They're a great way to save for a goal, like a house deposit or a holiday.

Get the highest interest on your savings

Savings accounts usually earn more interest than other accounts. They're usually online, and don't have a debit card, so it's not as easy to dip into your money.

Higher interest rate

The higher the interest rate, the faster your hard-earned savings will grow.

A competitive savings account will offer an interest rate of at least 2.2%. A transaction account will usually have an interest rate between 0% and 0.5%.

This means your savings will grow faster in a savings account.

Bonus interest rates

Many savings accounts offer a bonus interest rate if you meet certain conditions. For example, if you make regular deposits of $500 per month, or keep a minimum balance of $5,000.

Honeymoon interest rates

Some banks offer a higher interest rate for a short period of time, called a honeymoon interest rate. Always check what the interest rate will be after the honeymoon period ends.

No fees

The best option is a no-fee savings account — you don't want account fees to eat up your savings.

Linked accounts

To open a savings account with some providers, you will also need to open a linked transaction account. This makes it easier to transfer money between the accounts.

Low risk

Savings accounts are a low-risk investment. They are protected by the Australian Government's financial claims scheme. This guarantees to pay you up to $250,000 if your bank, credit union or building society fails. This guarantee applies per person and per institution.

Compare savings accounts

Before you open a savings account:

Comparison websites can be useful, but they are businesses and may make money through promoted links. They may not cover all your options. See what to keep in mind when using comparison websites.

Compare these features:

Interest rate

  • what the interest rate is
  • how often it's paid
  • if it has a bonus or honeymoon interest rate, and what the conditions are

Account fee

  • monthly account fee

Minimum balance

  • if you need to keep a minimum balance

Maximum balance

  • the maximum you can save in your account

Linked account

  • if you need a linked transaction account with the same provider

Withdrawals

  • how often you can withdraw money

Regular deposits

  • if you need to make regular deposits, and how much

Review regularly for a better interest rate

Review your savings account regularly. Compare it to others on the market to make sure you're getting the best interest rate.