Savings Account Interest Rates
Find the savings account with the most competitive interest rate when you compare your options with Savvy.
Fact checked
Compare savings accounts
Are you looking to grow your savings? Compare a wide range of savings accounts with Savvy so you find the best deal in Australia and the highest interest rate to help grow your savings.
Rabobank High Interest Savings Account |
|||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|||||||||||||||||
Rabobank’s High Interest Savings Account helps grow your savings while offering flexibility and easy access to your money.More details |
|||||||||||||||||
|
|||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|||||||||||||||||
Use invite code SAVVY10 for $10 upon successful sign-up. (Refer to offer T&Cs on Up website)More details |
|||||||||||||||||
Disclaimer: Savvy is not advising or recommending any particular product to you. We provide general information on products for the purposes of comparison, but your personal situation or goals are not considered here. Although we try to make our comparisons as thorough as possible, we do not have information on all products on the market on our site.
You should always consult a given offer's PDS or further documentation in the process of deciding on which loan to choose, as well as seeking independent, professional advice. If you decide to apply with one of the lenders listed above via our website, you will not be dealing with Savvy; any applications or enquiries will be conducted directly with the lender offering that product.
Compare and find a savings account with a top interest rate
When you’re opening a savings account, picking a strong interest rate can be the key to boosting your bank balance. Understanding the different types of rates, what their conditions are and how they benefit you can make achieving those savings goals easier.
Learn how to compare savings accounts, including interest rate offers, and find the best one for you right here with Savvy to start boosting your funds today.
What types of interest rates can I compare on a savings account?
Standard rates
Your savings account will come with a standard variable interest rate, which is the base rate you’ll earn interest on. When comparing the best savings account interest rates, it’s always worth looking out for a competitive base rate. If you can’t meet special terms on your accounts, such as minimum deposits, this will be the rate through which you earn interest.
Interest is earned on a compounding basis. Reportedly called the ‘eighth wonder of the world’ by Albert Einstein, compound interest is one of the best ways to grow the interest you earn in your account. It allows you to earn interest on your savings and interest, making it different from loans where you only pay interest on your outstanding principal. You can use Savvy’s fuss-free compound interest calculator to see how your savings can grow over time.
Bonus rates
You can earn a higher interest rate if you meet certain requirements set by a financial institution on your savings account. This could reach up to 1% to 2% more than the base rate. Some of the conditions institutions place on accounts, and are important to compare, include:
- Minimum monthly deposit benchmarks
- Limited or no withdrawals
- Requiring your balance be above or below certain limits
- Transferring a certain amount each month to a linking account
Honeymoon rates
Financial institutions offer these rates to entice customers to open savings accounts. They remain high for the initial few months after opening a savings account before dropping to a lower standard variable rate. If you’re considering this type of savings account, it’s important you check how long your high interest lasts and whether you need to pay a minimum deposit, as well as what it’ll revert to after the honeymoon period.
Term deposit interest rates
Putting your money in a locked account, such as a term deposit, allows you to achieve higher base interest rates. These rates increase the longer you choose to keep your money locked up. Widely seen as one of the safest types of savings accounts to park your funds, they have fixed interest rates where most others have variable rates, meaning you can guarantee a set return if you leave your funds untouched for an agreed period.
What can affect the interest I earn in my savings account?
Your rate
Obviously, the rate you get on your savings account will be a major factor. You’ll be looking for the highest rate the market has to offer. For instance, if you opened an account with $5,000 at a rate of 0.5% p.a. and made monthly deposits of $500, you would earn $1,768 in interest over ten years, but if you opened an account with the same variables at a rate of 1% p.a., you would earn $3,601 in interest.
Deposits
Making frequent deposits will earn you more interest. Interest on savings accounts is compounded daily, which means it can benefit your bank balance to pay a smaller amount weekly or fortnightly rather than putting down a lump sum every month. Some institutions require a minimum deposit before you can open an account, such as a term deposit. These can be between $1,000 and $5,000. They may also require you to deposit a minimum monthly amount to gain access to a higher interest rate. If you're still scratching your head, Savvy’s savings deposit goal calculator is a good way of checking how much you’ll regularly need to pay to reach your goal.
Withdrawals
Resisting the temptation to touch your savings will pay off when it comes to the interest earned on your account. Many institutions will give you a certain number of free withdrawals. Accounts with bonus interest conditions can also make earning a higher interest rate conditional on meeting requirements such as minimum withdrawals.
Cash rate
Interest rates on online savings accounts can see-saw in line with the cash rate regularly set by Australia’s central bank. It’s influenced by variables such as the country’s economy, unemployment and inflation. If the Reserve Bank of Australia (RBA) lifts rates, the interest you earn will grow, whereas if the rates drop, you’ll earn less (provided your financial institution passes on rate increases and decreases).
Fees and charges
There are plenty of ‘fee-free’ banks on the market. However, there are some which charge you to park your money in a savings account. When you’re comparing the best savings accounts, it’s good to keep one eye on the charges. These can come in many forms, including fees for account keeping or using another merchant’s ATM system. If the cost of storing your cash outweighs the interest you’re earning, it could make your savings counterproductive.
Why is it important to get the best interest rate?
The better your savings account interest rate, the more return you’ll get on the money you’ve invested. You’re looking for a savings account with high interest to maximise your cash growth. For example, if you opened a savings account with a rate of 1% and deposited $300 every month, you would earn $159 in interest over three years. However, if you had a rate of 1.5%, this would increase to $240. When you’re shopping around and comparing the best deals, use Savvy’s savings calculator to help make picking a rate easier.
Types of savings account
Why compare savings accounts with Savvy?
100% free
You won't have to pay a cent to compare savings accounts with us, so you can do so at any time you like.
Online from start to finish
There's no need for you to worry about visiting any banks, as you can compare accounts and open one online.
Reputable partners
We're partnered with trusted financial institutions around Australia to bring more quality to your comparison.
Top tips for finding the best interest rate
Interest conditions
Find an account with manageable interest rate conditions. Institutions can often require you to meet several conditions to earn a high interest rate. Ensure you can comfortably meet these before opening an account to avoid missing out on the interest you’re looking for.
Be clear on your savings goals
Having a clear idea of how much you want to save, and over how long, gives you some guidance over interest rates. For instance, if you’re a saver who’ll be making regular deposits and few withdrawals, a high interest savings account could be the best fit for you.
Be wary of introductory rates
Honeymoon rates can be a real boon, but you need to make sure they’re suitable for your savings goals, such as if you’re looking at an aggressive high-deposit savings strategy, as opposed to low and slow saving.
Compare your options with Savvy
Using Savvy’s easy-to-follow side-by-side table, you’ll be able to compare interest rates and any other relevant features to find the one that gives you the biggest return on your cash reserve
Frequently asked interest rate questions
Our savings calculators
Use our savings calculator to help you calculate how much you could save over a set timeframe based on different deposit sizes and frequencies.
Your savings can put in work for you. Crunch the numbers to see how much interest you could earn on top of your interest by compounding daily, monthly and annually.
It's crucial to have a clear idea of your monthly household budget to see where your money is going and where it could potentially be better spent.
If you're applying for a loan or need to know what your salary is for your tax return, you can use our annualisation calculator to work out what you'll earn this financial year.
Setting savings goals is important. With this tool, you can work out how much you'll need to deposit to reach your financial aims over a set timeframe.
Just as important as knowing how much to deposit is working out how long it'll take to reach your goals. This savings goal calculator can help you do just that.
