10 Best High-interest Savings Accounts in Australia

A savings account is an account where people/individuals can easily deposit money and earn interest, helping them save towards a financial goal. People earn interest on their balance, helping them grow their savings. People can get their pay deposited into the account and receive money transfers from other individuals and banks.

High-yield savings accounts are those account that offers substantially higher interest rates than traditional savings accounts. In this article, you will understand the basics of a high-interest saving account, how the account works, and a list of the 10 best high-interest savings account in Australia.

Read Also:

How To Get Instant Approval Virtual Credit Card With Instant Use

How To Build Credit Without A Credit Card (2023 Guide)

How To Accept Credit Card Payments In 7 Simple Ways

high-interest savings accounts in Australia
Credit:scripbox.com

What is a high-interest savings account in Australia?

A high-interest savings account, also known as a high-yield savings account, is a savings account that offers mouth-watering interest rates on deposits. Typically, high-interest savings accounts pay greatly more than the national average of a traditional or standard savings account.

These accounts offer more competitive interest rates to help people’s savings grow. All high-yield/interest-earning savings accounts have variable rates (the rate could go up or down over time, usually caused by the changes to the Reserve Bank cash rate). So, individuals need to compare the market to find the best high-yield/interest savings account for their needs. 

How high-interest savings account works in Australia

Below are ways how high-interest savings account works in Australia

APY

High-yield/interest savings accounts tend to offer individuals higher APYs than accounts found at traditional or standard banks. Online banks have lower operating costs compared to physical, financial institutions. As a result, they can offer people higher interest rates.

Where people can open them.

People are more likely to find high-interest savings accounts at credit unions, online banks, and neo-banks.

Deposits.

The account allows individuals to make regular deposits.

Access.

The account allows individuals to access their money via transfers to linked bank accounts or withdrawals.

Minimum deposit requirements.

Minimum deposit requirements vary from bank to bank. It’s possible to open high-interest savings accounts with as little as 0 dollars at certain online banks, though some may require people to have $100 or more to get started.

Safety.

Money/cash held in an account at an insured bank (FDIC-insured bank) is protected up to the legal limits. The present coverage limit is $250,000 per individual, per financial institution, and account ownership type.

Transaction limits.

Savings accounts are subject to monthly withdrawal limits. While federal rules restricting savings accounts to 6 withdrawals each month have been suspended, credit unions and banks can still capitalize on the number of withdrawals people are allowed to make. And banks or credit unions can charge excess withdrawal fees.

Monthly fees.

People may pay no minimum balance fees or monthly maintenance fees, and there may be no wire transfer fees or excess withdrawal fees. These features add to a high-interest savings account’s appeal since people get a higher rate and save money on fees.

The list of the 10 best high-interest savings accounts in Australia

 Below is a list of the 10 best high-yield/interest-saving accounts, along with their interest rate and how you can participate.

#1. Virgin Money Boost Saver with Go Account

The virgin money boost saver account offers some wonderful perks. Individuals can earn virgin money points when they make purchases and competitive bonus rates on their savings if they can make a monthly deposit condition. It is an account with no monthly keeping fees, and people can link their debit card to their google pay, apple pay, or Samsung pay instantly after opening their account.

Interest rate

The virgin money booster account comprises a 0.30 percent notice interest rate, 0.05 percent (%) p.a. standard variable rate, and 4.25 percent (%) p.a. bonus rate. The monthly conditions to earn the bonus rate vary depending on age:

  • 14 – 17 years do not have to meet any requirement to earn the full rate.
  • 18 – 24 years must deposit a minimum of $1,000 from an external account and make 5 settled purchases, direct debits, or BPAY payments.
  • 25 years and above must deposit a minimum of $2,000 from an external account and make 5 settled purchases, direct debits, or BPAY payments.

If an individual meets all these conditions per month, not only should they be able to earn the full interest rate, but they will also be able to earn Virgin Money Points. 

How to participate 

 People can easily participate online in less than 15 minutes. They must check if they meet the eligibility requirement and also ensure they have the necessary documents. The eligibility requirement is listed below

Residency requirement:

before an individual can participate in this account, the person must have an Australian residential address.

Minimum age:

The minimum age that can participate in this account is 14 years 

#2. Macquarie Bank Savings Account

This savings account offers individuals bonus interest for the first four (4) months they have the account. It offers a maximum bonus rate of 4.5 percent, which is higher than most accounts in the market. The account doesn’t require a withdrawal or deposit to get the full interest rate.

 The account is flexible and is suited for individuals who are not committed to monthly deposits and can still enjoy easy access to their savings and a high-interest rate.

Interest rate 

 The account offers new users a welcome interest rate of 4.5 percent (%) p.a. for the first four months. After these four months, they start earning the ongoing standard rate of 3.7 percent (%) p.a. on the portion of their balance up to 250,000 dollars.

How to participate

Individuals can easily participate in less than 12 minutes. They have to get a Macquarie transaction account, or if they don’t own one, they can easily open one when completing their application. The eligibility requirement for this account is 

Age: an individual must be 12 years and above to apply for this account

Residency: The account is only available to a permanent Australian resident.

#3. Ubank – Save Account

  Ubank offers a bonus savings account and a free transaction account. It is owned by one of the biggest banks in Australia (NAB) and has an Australia call center available round the clock with mobile banking options. Ubank is well known for having low fees and competitive savings rates.

Interest rate 

When people open a spending account, they will get a savings account and earn up to 4.1 percent (%) when they transfer at least 200 dollars monthly into either account.

How to participate 

 To participate in the Ubank account online, individuals should ensure that they meet the following criteria and have the necessary documentation. Below are the eligibility criteria needed to participate in the Ubank account 

  • Individual must be 18 years and above 
  • Individuals must possess personal details like their names, residential addresses, email addresses, phone numbers, and dates of birth.
  • Have identification documents such as a passport, proof of age, driver’s license, etc.
  • Individual must have an Australian residential address and phone number 
  • Individuals must be Australian residents for tax purposes.

#4. Bank of Queensland Smart Save Account

This account is for customers aged 36 and above. The account offers an ongoing bonus of 4 percent (%) p.a. when the monthly criteria or requirement is met. Individuals must deposit 1000 dollars a month and make at least five eligible purchases from the Everyday account to earn this rate.

Interest rate 

The bank of Queensland account offers an ongoing bonus rate of 4 percent (%) p.a. for people aged 36 and above. To earn this bonus, the individuals need to make a deposit of 1000 dollars a month and make at least five eligible purchases from the Everyday account monthly to earn this rate. 

How to participate 

  •  People can apply in less than 10 minutes; the eligibility to apply or participate in this account is 
  • The individual must be 36 years and above
  • The individual must have an Australian residential address

#5. AMP Saver Account

The AMP Saver account offers a bonus rate of up to 3.6 percent (%) p.a. The total variable rates apply monthly if an individual deposits 250 dollars in the previous month into their AMP saver account. The account has no monthly spending requirement to meet up to. 

Interest rate 

 The AMP Saver account offers a total bonus variable rate of up to 3.6 percent (%) per annum. This rate will apply monthly if people deposit 250 dollars in the previous month into their AMP Saver account.

How to participate 

The eligibility requirement to participate in this account is as follows

Age: The individual must be 18 years and above to be able to apply for this account

One account per customer: The interest rate on the AMP account is limited to one account per customer. 

Tax file number: Individuals must provide their TFN (tax file number) to prevent AMP from deducting taxes at the highest marginal rate.

Residency requirements: People must be Australian residents and be able to provide proof of staying in Australia when the account t is opened.

#6. Bank of Queensland Future Saver 

 The Bank of Queensland’s future saver account offers a competitive bonus rate of 4.75 percent (%) p.a. for clients aged 14 to 35 years when the monthly requirement is met. To earn this rate, people need to meet the monthly of 1000 dollars and make five (5) or more purchases from their linked bank of Queensland everyday account.

Interest rate 

This savings account offers a competitive bonus rate of up to 4.75 percent (%) for clients aged 14 years to 35 years. To earn this bonus rate, individuals need to:

  • If an individual is 14 to 17 years old, there are no monthly requirements to meet. 
  • Make a minimum deposit of $1000 into their linked Bank of Queensland Everyday Account monthly.
  • Individuals should make at least five (5) eligible transactions from their Everyday Account monthly.

How to participate 

  • To participate in this account, individuals have to meet the following criteria
  • The individual must be between the age range of 14 to 35 years
  • The individual must have an Australian residential address.

#7. ING Savings Maximiser

The ING Savings Maximiser account offers a monthly bonus interest rate of approximately 4.55 percent (%) when individuals meet the account criteria. It is one of the most competitive rates among other accounts in the market.

The saving account monthly deposit is slightly higher than most savings accounts; however, people can withdraw as much as they want from the account during the month and at the same time still eligible for the bonus interest.

Interest rate 

Individuals can earn a maximum variable bonus of 4/55 percent (%) p.a. when they link their savings account to an ING Orange Everyday account and meet the following requirement monthly. People who deposit a minimum of 1000 dollars and make a minimum of 5 card purchases grow their Savings Maximiser balance. 

How to participate 

To participate in this savings account, people need to meet the following criteria 

Age: Applicants must be 18 years and above to apply for this savings account 

Residency: Applicant must be a permanent Australian citizen or resident with a residential address

Applicants need a source of identification document such as a driver’s license, birth certificate, passport, Medicare card, etc.

#8. Up-Saver Account

This savings account offers an everyday account for daily spending and pays competitive interest rates. The account is completely managed via the application, offering many handy features and digital tools to help manage money.

How to participate 

To participate in this savings account, applicants must be 16 years and above, and only a minimum of $1 is needed to get the account started.

#9. Citi – Online Saver

 This savings account offers a maximum bonus rate of 3.75 percent (%) for the first four (4) months of account opening. No spending requirement or deposit conditions is needed to get this rate. After 4 months of account opening, the interest rate reverts to 3.35 percent (%), and there are no conditions to earn this rate.

 Interest rate 

 The account offers a variable interest rate of 3.75 percent (%) for the first four (4) months of account opening. After 4 months of account opening, the interest rate reverts to 3.35 percent (%), and there are no conditions to earn this rate.

 How to participate 

 To be able to participate in this savings account, the applicant needs to meet up to the following criteria

Age: Applicants must be 18 years and above to participate

Residency: Only permanent Australian residents have access to this account

Tax file number: Individuals must provide their TFN (tax file number) to prevent Citi from deducting taxes at the highest marginal rate.

Personal details: Applicants’ personal information is needed to complete the application process.

#10. Westpac Life

 This savings account allows people to set personalized savings goals and track progress. People can set up their savings and at the same time earn bonus interest on their money. The interest rate is easier to achieve; unlike most savings accounts, people just need to deposit money monthly into their account and ensure their balance at the end of the month is bigger than it was at the beginning. 

 Interest rate

The savings account has a variable interest rate of 1.35 percent (%) p.a. and a bonus interest rate of 2.4 percent (%) p.a.

 How to participate

 To participate in this savings account, applicants have to meet up to the following criteria

Age: Applicants must be 18 years and above to apply for this account

Residency: Applicant must have an Australian residential address 

To open this account, applicants must have a Westpac everyday transaction account.

Tax file number: Individuals are to provide their TFN (tax file number) to prevent Westpac from deducting taxes at the highest marginal rate

Identification: Applicants must be able to verify their identity with either passport, driver’s license, or birth certificate.

Conclusion

A high-interest savings account can be a very good source of saving money, the safety of federal insurance, and protecting your principal. High-interest savings seem like a source of investment due to their high rates and bonuses, unlike the regular savings account. Select a good high-interest savings account that best serves your situation and goals.

 

Get Latest Market Updates!

Enter your name & email to get started!

We don’t spam! Read our privacy policy for more info.

Sharing is caring...

Leave a Comment