The best high-interest savings accounts | CHOICE (2024)

Need to know

  • Interest rates on bank deposit accounts have risen recently, meaning there are now more benefits to old-fashioned saving
  • Some accounts will pay you interest with few or no conditions – others will give you a better rate, but come with specific requirements
  • Before making a deposit, check that you can meet any conditions and whether your savings would be better off elsewhere

Australia's cash rate has jumped up a lot since it first began rising almost two years ago, meaning the interest rates on deposit accounts at banks across the country have also been on an upwards trajectory.

They may still not be as sexy as some modern investments, but high-interest savings accounts, whose yearly rates were previously languishing at below 1%, are now finally starting to live up to their name, with rates hovering around 5.50%.

With the money market showing some life, now could be a good time to revisit this long-time savings favourite and see which banks are offering the best rates. Luckily, we've filtered through the terms and conditions for you to find the best high-interest savings accounts worth considering.

On this page:

  • What is a high-interest savings account?
  • Best high-interest savings accounts by base rate
  • Best high-interest savings accounts by bonus rate
  • Best of the big four: ANZ, CBA, NAB and Westpac
  • How much does a high-interest savings account pay?
  • High-interest account traps to be aware of
  • The problem with the current high interest rates

What is a high-interest savings account?

High-interest savings accounts are bank accounts that pay you a higher rate of interest on the money you put in them. This interest is represented as an annual rate, but you'll receive it into your account monthly.

Because they offer higher rates than most other bank accounts, many of these products come with conditions, such as depositing a certain amount each month.

Like regular savings accounts, they're also usually online and not connected with a credit or debit card, so it's not as easy to dip into your savings.

In order to get one of these accounts, you'll also often have to open an everyday spending or transaction account at the same bank, some of which may come with their own fees or conditions. Our list tells you which products require you to take this extra step.

Thankfully, most high-interest savings accounts don't come with ongoing account-keeping, service or admin fees. In any case, we outline the fee situation for each of the best performing accounts (and their associated transaction accounts) in our list below.

    The best high-interest savings accounts | CHOICE (1)

    You get more money for your deposit in a high-interest savings account than in a regular savings or transaction account.

    How to know where to put your savings

    Before you go switching accounts to cash in on the rising rates, pause to consider the best way to make your savings count:

    • When choosing which high-interest option to go for, don't fall for teasers (i.e. accounts that offer generous interest, but only for the first few months) or options with deposit or transaction conditions that you might find hard to meet.
    • If you have debts owing to buy now, pay later (BNPL) services or credit cards, your first priority should be to pay them off before putting money aside for saving.
    • If you've got a mortgage, a 100% offset account might be a better destination for your cash – keeping your money here can help you reduce the amount of interest you'll pay over the life of your loan.

    Best high-interest savings accounts by base rate

    These accounts offer the best ongoing annual interest rates without requiring you to make any regular deposits or transactions, or making you wait a certain amount of time before you can access your money.

    (Last updated 8 March 2024)

    Freedom Saver (Australian Unity) – 5.20%. On balances up to $50,000.

    • You'll also have to open a linked transaction account with the same provider.
    • No ongoing account-keeping fees on this account or the linked transaction account.

    ANZ Save (ANZ Plus) – 4.90%. On balances up to $250,000.

    • You'll also have to open a linked transaction account with the same provider.
    • No ongoing account-keeping fees on this account or the linked transaction account.
    • Exclusive to the ANZ Plus app and not accessible via ANZ's standard online banking.

    Simple Saver Account (Bank of Queensland) – 4.85%. On balances up to $5 million.

    • Exclusive to the myBOQ app and not accessible via BOQ's standard online banking.
    • No ongoing account-keeping fees on this account or on everyday transaction accounts at the same provider.

    MoneyMAX Account (Unity Bank) – 4.75%.

    • You'll also have to open a linked transaction account with the same provider.
    • No ongoing account-keeping fees on this account or the linked transaction account.
    • You'll have to pay $10 to become a member of Unity Bank.

    Online Saver Account (Orange Credit Union) – 4.75%. On balances over $1000.

    • You'll also have to open a linked transaction account with the same provider.
    • No ongoing account-keeping fees on this account or the linked transaction account.

    Savings Account (Macquarie) – 4.75%. On balances up to $1 million. An introductory rate of 5.35% is available for the first four months on balances up to $250,000.

    • You'll also have to open a linked transaction account with the same provider.
    • No ongoing account-keeping fees on this account or the linked transaction account.

      Best high-interest savings accounts by bonus rate

      Able to make a few concessions with your money without breaking your budget? Some of these accounts top the savings rate market, but require depositors to make certain sized deposits and numbers of transactions in return.

      It's important to know that if you can't meet these conditions, the bank will only offer you a base rate of interest, which can be as low as 0.05%.

      (Last updated 8 March 2024)

      HomeME Savings Account (ME) – 5.55%. On balances up to $100,000.

      • Conditions: have a growing account balance and deposit at least $2000 into a linked SpendME account every month.
      • You'll also have to open a linked SpendME transaction account with the same provider.
      • No ongoing account-keeping fees on this account or the linked transaction account.
      • Exclusive to ME's GO app and not accessible via ME's standard online banking.

      Growth Saver (MOVE Bank) – 5.50%. On balances up to $25,000.

      • Conditions: deposit at least $200 and make no withdrawals every month.
      • No ongoing account keeping fees.

      Savings Maximiser (ING) – 5.50%. On balances up to $100,000. Can only apply to one account.

      • Conditions: deposit at least $1000 into any personal ING account in your name and make at least five settled purchases with an ING debit or credit card every month. The savings account must also have a higher closing balance than the previous month (excluding interest).
      • You'll also have to open a linked transaction account with the same provider.
      • No ongoing account keeping fees on this account or the linked transaction account.

      Future Saver Account (Bank of Queensland) – 5.40%. On balances up to $50,000.

      • Conditions: must be 14–35 years old. Deposit at least $1000 (cash and cheques not included), and make five settled, eligible transactions from, a linked Everyday Account every month.
      • You'll also have to open a linked transaction account with the same provider.
      • No ongoing account-keeping fees on this account or the linked transaction account.
      • Exclusive to the myBOQ app and not accessible through BOQ's standard online banking.

      Saver Account (AMP) – 5.40%. On balances up to $250,000.

      • Conditions: deposit at least $1000 each month.
      • You must already have either an AMP everyday transaction account or a transaction account at another bank to link to this product.
      • No ongoing account-keeping fees on this account or an AMP transaction account.

      Why are some bank accounts only available via an app?

      You'll notice several of the accounts listed above are only available through the relevant bank's app and can't be accessed via normal online banking.

      We asked the banks offering these why this is the case.

      BOQ Group, which offers the BOQ and ME accounts, says it's prioritising mobile platforms for these products because of "rapidly changing" customer needs and mobile usage.

      ANZ says it's also seeing more people wanting to go online and use their smartphones for banking and with ANZ Plus the bank is seeking to respond to these "rapidly evolving" consumer trends in an "engaging" way.

      Best of the big four: ANZ, CBA, NAB and Westpac

      They've historically lagged behind the new, online-only banks on deposit rates, but Australia's major lenders are now offering more competitive savings options on their bonus rate products. Here's what you could be getting if you're a customer at one of the big four:

      (Last updated 8 March 2024)

      ANZ

      • ANZ Plus Save – 4.90%. See details above.
      • Progress Saver – 4.25%. Conditions: deposit at least $10 in one transaction each month and make no withdrawals or transfers, otherwise it reverts to 0.01%. No ongoing account-keeping fees.
      • Online Saver – 1.50%. (3.65% for the first three months.) No ongoing account-keeping fees.

      CBA

      • GoalSaver – 4.90%. Conditions: make at least one deposit and have a growing account balance each month, excluding interest and bank-initiated transactions, otherwise it reverts to 0.40%. No ongoing account-keeping fees.
      • NetBank Saver – 2.35%. 5.10% for the first five months on your first NetBank Saver account. No ongoing account-keeping fees.

      NAB

      • Reward Saver – 5.00%. Conditions: make at least one deposit and no withdrawals each month, otherwise it reverts to 0.35%. No ongoing account-keeping fees.
      • iSaver – 2.00%. 5.00% for the first four months on balances up to $20 million if you haven't held an iSaver account in the last 12 months. No ongoing account-keeping fees.

      Westpac

      • Life – 5.00%. Conditions: Make at least one deposit and have a growing account balance each month, otherwise it reverts to 2.00%. 18–29 year olds with this account can earn 5.20% on balances up to $30,000 if they meet the previous criteria and make five eligible and settled purchases with a debit card linked to their Westpac Choice account. No ongoing account-keeping fees.
      • eSaver – 1.10%. 5.00% for the first five months if opened online by sole applicants who have never held an eSaver account before. No ongoing account-keeping fees.

        How much does a high-interest savings account pay?

        If you had $1000 in an account and deposited $100 into it each week for a year, you would earn…

        $36 in an account earning 1.00% interest

        $163 in an account earning 4.50% interest.

        $181 in an account earning 5.00% interest

        $199 in an account earning 5.50% interest

        $207 in an account earning 5.70% interest

        Source: mozo.com.au

        How to compare high-interest savings accounts

        Step 1. Interest rate: What's the maximum rate and does it come with conditions? Does it only last for a short time?

        Step 2. Linked account: Do you need to open a linked transaction account with the same bank?

        Step 3. Access: Is the account app-exclusive? Can you use internet banking? Will you have access to a debit card, ATM withdrawals or a linked account?

        Step 4. Conditions: What are the conditions for the maximum interest rate?

        • Intro rate: Does the interest rate only apply for the first few months?
        • Deposits: Do you need to make minimum deposits? Does the account balance need to grow?
        • Transactions: Do you need to make a certain number of transactions from a linked account?
        • Withdrawals: Are withdrawals allowed?

        Step 5. Fees: Are there any fees on the account or a linked account?

        High-interest account traps to be aware of

        As we've highlighted, some high-interest savings accounts come with a web of conditions and caveats.

        You should make sure you will be able to meet these requirements if you want to take advantage of the bonus rates these accounts offer. If you can't, in many cases your rate will be slashed and end up being much lower than what you would be getting in a condition-free account.

        Rate tease

        'Teaser' accounts make a big show of offering high rates with no conditions – only to reveal in the fine print that holders will enjoy this rate for just the first few months.

        There are quite a few of these out there, so always look at the details of the deal before you park your cash and be prepared to move your savings elsewhere if you don't want to be hit with a lower base rate.

        CHOICE tip: Accounts with a short-term bonus rate can work for you if you need a place to leave your money for a short period of time, as they're more flexible than a term deposit.

        Minimum monthly deposits

        Many accounts that offer a top-shelf rate will make you work for it, requiring you to make set monthly deposits into it.

        For some banks, the bar for these contributions is as high as $2000, so make sure you can afford to make these sorts of concessions before chasing these higher rates.

        No withdrawals and positive balances

        These minimum-deposit conditions often come paired with a "growing balance" clause, which slashes your rate to next to nothing if you make a transfer and leave the account holding less money than the previous month. Others only provide bonus rates if you make no withdrawals at all.

        Be prepared to leave your money untouched for a while if you want to reap some serious interest

        If your account comes with these conditions, be prepared to leave your money untouched for a while if you want to reap some serious interest.

        Linked accounts and mandatory purchases

        Quite a few of the best savings options currently on the market require you to have a transaction account with the bank you're saving with.

        In the age where you can set up a bank account online, this is a relatively simple task, but be aware that a linked transaction account may come with ongoing fees. You might also have to make a minimum number of purchases using the card linked to that account every month if you want to keep your rate up.

        CHOICE tip: Make sure you only use this sort of account if you can fulfil its conditions without inconveniencing yourself or your budget.

        Age limits and occupation eligibility

        We've decided to overlook a few accounts that would have made it onto our list because their competitive rates are only available to children or teenagers. Always check you're putting your money somewhere that's age-appropriate.

        We've also left off our list any accounts offered by banks who only offer their products to current and former workers in particular sectors, (such as education or the emergency services) or relatives of people who meet this criteria.

        The problem with the current high interest rates

        While interest rates have gone up over the last eighteen months, we're concerned they're not flowing through to savers (who benefit) as much as they are to mortgage holders and borrowers (who don't).

        The ACCC has just conducted an inquiry into the interest rates on deposit products such as savings accounts and how they compare to those on loans, after noting that the changes to saving rates had been "smaller or conditional".

        While interest rates have gone up over the last eighteen months, we're concerned they're not flowing through to savers (who benefit) as much as they are to mortgage holders and borrowers (who don't)

        CHOICE has been weighing in on this issue, calling for banks to be required to ensure they're offering fair value on deposits, move customers to their best savings rate and make it easier to close accounts.

        In its final report handed to the federal government at the end of last year, the ACCC recommended banks be required to tell customers when they change their interest rates, and prompt them to consider switching to a better rate.

        We care about accuracy. See something that's not quite right in this article? Let us know or read more about fact-checking at CHOICE.

        Stock images:Getty, unless otherwise stated.

        Join the conversation

        The best high-interest savings accounts | CHOICE (2)

        To share your thoughts or ask a question, visit the CHOICE Community forum.

        The best high-interest savings accounts | CHOICE (2024)

        FAQs

        What is the best savings account with the highest interest rate? ›

        Summary of Best High-Yield Savings Accounts of 2024
        AccountForbes Advisor RatingAnnual Percentage Yield
        TAB Bank High Yield Savings4.55.27% APY
        EverBank Performance℠ Savings4.55.15% APY
        Varo Savings Account4.53.00% to 5.00% APY
        Laurel Road High Yield Savings®4.55.00% APY
        6 more rows

        Which US bank gives 7% interest on savings accounts? ›

        Why Trust Us? As of April 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.

        Which bank is giving 7% interest on savings accounts? ›

        Existing-customer regular savers – what we'd go for
        ProviderRate (AER)Can you skip months?
        Co-operative Bank7% variable for one yearYes
        Skipton BS (must have been a member since before 11 Jan 2024)7% fixed for one yearYes
        Coventry BS (must have been a member since 1 Jan 2023)6.75%Yes
        Nationwide6.5% variable for one yearYes
        13 more rows
        Apr 23, 2024

        Where can I get 5% interest on my savings account? ›

        Nationally Available High Interest Account Rates from Our Partners
        Account NameAPY (Annual Percentage Yield) Accurate as of 4/26/2024
        EverBank Performance℠ Savings5.15%
        CIT Bank Platinum Savings5.05% (with $5,000 minimum balance)
        Wealthfront Cash Account5.00%
        Barclays Online Savings Account4.35%
        2 more rows
        Apr 23, 2024

        Where can I get 7% interest on my money online? ›

        Two credit unions pay over 7% APY on accounts right now: Landmark Credit Union and OnPath Rewards High-Yield Checking. However, these are both checking accounts with limitations on eligible balances. Plenty of high-yield savings accounts pay over 5% APY on your total balance without making you jump through hoops.

        Who has the highest paying CD right now? ›

        The Best CD Rates by Term
        TermAPYAccount Name
        No Penalty CD (6 Months)5.34% APYClimate First Bank 6 Month No Penalty CD
        3 Month5.51% APYTotalDirectBank 3 Month CD
        6 Month5.55% APYNewtek Bank 6 Month CD
        1 Year5.60% APYNorthern Bank Direct 1 Year CD
        5 more rows

        How can I get 10% interest on my money? ›

        Where can I get 10 percent return on investment?
        1. Invest in stocks for the short term. ...
        2. Real estate. ...
        3. Investing in fine art. ...
        4. Starting your own business. ...
        5. Investing in wine. ...
        6. Peer-to-peer lending. ...
        7. Invest in REITs. ...
        8. Invest in gold, silver, and other precious metals.

        Can you get 7% on a CD? ›

        Can You Get a 7% CD Account? There was a lot of excitement in August 2023 about a few credit unions offering 7% APYs on certificates. But those rates were offered for a limited time only and are no longer available. However, the nation's best CD rates are still well above 5%, with some pushing toward 6%.

        Which bank gives 8% interest? ›

        Top 20 Scheduled Banks offering Best FD Rates
        BanksHighest FD rate (% p.a.)Additional interest rate for senior citizens (% p.a.)
        AU Small Finance Bank8.000.50
        Fincare Small Finance Bank8.000.50
        DCB Bank8.000.50-0.60
        IDFC First Bank8.000.50
        16 more rows

        What is the best thing to do with a lump sum of money? ›

        If you're dealing with a particularly large lump sum, it's often beneficial to distribute the money across various savings and investment vehicles. This not only provides a safety net but also ensures tax efficiency.

        How much interest will $50,000 earn in a year? ›

        How much interest will I earn on £50,000? With £50,000 in Monument Bank's easy access account paying 5.01%, you could earn £2,505.00 over a year, or £208.75 per month.

        What is the best bank account for over 60s? ›

        We've summarised these different savings accounts available to you in the table below:
        Who Offers It? (Bank or Building Society)Type or Name of Savings AccountInterest Rate
        First DirectRegular saver7.00%
        Ford MoneyFlexible saver4.60%
        Goldman SachsOnline savings account4.75%
        Goldman SachsCash ISA4.75%
        15 more rows

        Do you pay taxes on a high-yield savings account? ›

        The IRS treats interest earned on a savings account as earned income, meaning it can be taxed. So, if you received $125 in interest on a high-yield savings account in 2023, you're required to pay taxes on that interest when you file your federal tax return for the 2023 tax year.

        What is the best bank to open a savings account? ›

        Best savings accounts of April 2024: Compare rates, fees, and...
        • SoFi.
        • UFB Direct.
        • Varo.
        • LendingClub.
        • Credit Karma Money Save.
        • TAB Bank.
        • Newtek Bank.
        • Quontic Bank.

        How to earn 10% interest per month? ›

        Here's my list of the 10 best investments for a 10% ROI.
        1. How to Get 10% Return on Investment: 10 Proven Ways.
        2. High-End Art (on Masterworks)
        3. Invest in the Private Credit Market.
        4. Paying Down High-Interest Loans.
        5. Stock Market Investing via Index Funds.
        6. Stock Picking.
        7. Junk Bonds.
        8. Buy an Existing Business.
        Feb 1, 2024

        Which bank gives 6% interest on savings accounts? ›

        Digital Federal Credit Union has an account that pays over 6% APY, but you must meet membership requirements to get started. You also won't earn this high interest rate on your entire Digital FCU savings balance. Plenty of savings accounts are available around the U.S. and still offer great rates — over 5% APY.

        Top Articles
        Latest Posts
        Article information

        Author: Manual Maggio

        Last Updated:

        Views: 6002

        Rating: 4.9 / 5 (69 voted)

        Reviews: 92% of readers found this page helpful

        Author information

        Name: Manual Maggio

        Birthday: 1998-01-20

        Address: 359 Kelvin Stream, Lake Eldonview, MT 33517-1242

        Phone: +577037762465

        Job: Product Hospitality Supervisor

        Hobby: Gardening, Web surfing, Video gaming, Amateur radio, Flag Football, Reading, Table tennis

        Introduction: My name is Manual Maggio, I am a thankful, tender, adventurous, delightful, fantastic, proud, graceful person who loves writing and wants to share my knowledge and understanding with you.