Bank of Melbourne Savings Accounts

Compare the different Bank of Melbourne savings accounts with Savvy to find the best one for you.

Last updated on June 24th, 2022 at 04:18 pm by Kurtis Eichler

Founded in 1989 by a Victorian-based building society, the Bank of Melbourne was purchased by Westpac in 1997. Westpac dropped the Bank of Melbourne name in 2004, before relaunching it in 2011.

Since then, it’s grown to have more than 1,000 employees across about 85 branches. While they offer your standard range of banking products, they also offer an extensive range of savings options, giving you plenty to consider when choosing the right account.

Comparing these savings accounts with Savvy will simplify your decision-making process. It’ll ensure you get the best bang for your bucks and choose an account that has the best mix of features to get you the best return on your money.

*Please note that Savvy does not represent Bank of Melbourne for their banking products.

Bank of Melbourne Logo

More about Bank of Melbourne savings accounts

What savings products does the Bank of Melbourne offer?

The Bank of Melbourne has many types of savings accounts to suit a range of customers, including:

Incentive Saver

Tailored to the goal-oriented person, the Incentive Saver allows you to earn up to 0.50% p.a. if you qualify for the bonus high interest rate. This fee-free account comes with a base interest rate of 0.15% p.a. and a bonus rate of 0.35% p.a., with the bonus interest being conditional on you meeting certain requirements each month. These include growing your balance by $50 every month and not letting your balance fall to $0. If you’re under 21, though, you only need to grow your account by $0.01 to earn the top rate.

These accounts give you the added flexibility of being able to tap into your money without it affecting your interest rate. You have to be over 14 years old to open this account by yourself and it can be opened as a joint account.

Maxi Saver

Promoted as a straightforward online savings account, the Maxi Saver gives you a honeymoon period of three months to earn a high interest rate of 0.50% p.a. Once this period ends, your interest falls to a much lower variable rate of 0.05% p.a.

You must link this account to a Bank of Melbourne everyday account. If you don’t have one, the bank sets up a Complete Freedom account for you when you open a Maxi Saver. This account comes without any fees and gives you complete freedom over your spending. You have to be 14 years old to open one of these accounts by yourself.

Term Deposits

These accounts allow to grow a nest egg by locking your savings away for a set term at a fixed rate. Interest rates range from 0.07% p.a. to 0.30% p.a. depending on the length of your term. Opening a term deposit requires an initial minimum deposit of $1,000. Aside from that, there are no set up or monthly fees. Existing customers may qualify for an undisclosed bonus rate.

As with any term deposit, you must provide 31 days’ notice if you want to dip into your funds prior to the date of maturity, except in cases of financial hardship or emergencies. You must be over 18 to open one of these accounts by yourself and it can be opened jointly.

DIY Super Saver

If you have a self-managed super fund (SMSF), the DIY Super Saver gives you a place to manage money withdrawn from your fund. It’s a requirement of most super funds that you have an authorised account linked to it. This account comes with standard variable rate of 0.10% p.a. and no bonuses. There are no minimum balance or deposit requirements and they come fee-free.

Investment Cash

This investment savings account pays 0.01% p.a. interest on your balance while giving you easy access to your money. You can freely deposit, transfer funds and receive funds through internet, phone or branch banking, with the ability to also pay bills through BPay, Pay Anyone, Osko and Overseas Telegraphic Transfer (OTT).

Business Access Saver

Put money aside for tax or GST payment using the Bank of Melbourne’s version of a business savings account. This account allows you to earn a variable rate of 0.10% p.a. while still having free access to your money. Interest is paid monthly and there are no monthly transaction or account fees. Money in the account must be used for business-related expenses and only sole-traders, companies and business people can open them.

Retirement Access Account

An account for those aged over 55, these are hybrid transaction and savings accounts. They allow seniors to spend their funds freely while still earning interest on their bank balance. Retirement Access Accounts comes with no monthly account-keeping fees, but you will be charged $5 for overseas withdrawals. You’ll receive a debit card with this account.

Interest is tiered, meaning you’ll earn different interest rates on different portions of the balance account. These rates include:

  • Up to $49,999 – 0.30% p.a.
  • $50,000 to $249,999 – 0.35% p.a.
  • $250,000 or more – 0.50% p.a.

What’s the process of opening a Bank of Melbourne savings account?

The fastest way to open an account with the Bank of Melbourne is online. Once you have compared savings accounts with Savvy and found the right one for you, the bank says it takes fewer than three minutes to open one of their accounts. The steps include:

  1. Choose your account: Check over the account conditions and select whether you’re opening a single or joint account. Double-check the eligibility criteria, including being of age and an Australian resident.
  2. Provide your personal details: You’ll then provide personal details such as contact numbers and address. You’ll also be asked to provide your tax file number (TFN) and the bank will ask you to set up an internet banking password and linked everyday account.
  3. Provide personal ID: You will need to provide two forms of personal ID. This can include a driver’s licence, Australian or foreign-issued passport, Medicare card or a birth certificate.
  4. Open your account: Once your account has been opened, you’ll receive your BSB and account number and you can start your savings journey.

How to compare and find the best savings account

Pros and cons of Bank of Melbourne savings accounts

PROS

Banking app for ease of use

This app has a range of features to help you manage your savings account, including deposit alerts, the ability to track your savings and 24/7 fraud monitoring.

No monthly fees or charges

All savings accounts are free of monthly fees, avoiding your interest being eaten up my tiny costs.

Minimal requirements

You can earn bonus interest for satisfying minimal account conditions, which include minimum monthly deposits of just $50 and no minimum balance requirements.

CONS

Victorian-centric locations

The Bank of Melbourne is a Victorian bank with few branches, so you may find it hard to locate one in other states and territories if you value in-person banking

Low bonus interest rates

Even if you meet the bonus interest requirements each month, the rates offered are less competitive than some other institutions in the market.

Overseas withdrawal fees

If you travel a bit for business or pleasure, you could be charged up to 3% on each withdrawal you make overseas.

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