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Investment Savings Accounts

Read more about investment savings accounts to learn how to compare your options with Savvy and get the most out of your money.

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, updated on July 28th, 2023       

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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.  

site-logos Rabobank High Interest Savings Account
  Maximum interest rate Base interest rate Introductory offer period Government guarantee  
site-logos 5.75% p.a. 4.40% p.a. 4 months Yes
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Rabobank’s High Interest Savings Account helps grow your savings while offering flexibility and easy access to your money.

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site-logos Up Savers Account
  Maximum interest rate Base interest rate Introductory offer period Government guarantee  
site-logos 3.60% 0.00% N/A Yes
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Use invite code SAVVY10 for $10 upon successful sign-up. (Refer to offer T&Cs on Up website)

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Compare investment savings accounts

Savings accounts are one of the safest and easiest ways to invest and grow your wealth. By securing a strong interest rate and making regular deposits, your nest egg can grow over years.

Comparing with Savvy will ensure you get the best return on your investment. We give you all the tools and tips to make finding the right savings account for your investment headache-free.

What is an investment savings account and how does it work?

Investment savings accounts are those which give you a secure way to invest your money. It allows you to earn interest on the money you won’t need to access for the foreseeable future. This can be money you put aside for a rainy day, your retirement or an expansion of your small business. It’s important to note that investment accounts aren’t any different from the standard suite of savings products; they’re simply a different name for them.

Interest is generally compounded daily, monthly or annually. Depending on the type of account you open, you’ll be able to earn the highest interest rate if you meet certain account conditions such as minimum balances or deposits. It can also be dependent on you not dipping into your savings over the month. These rates can be up to around ten times higher than rates offered on standard savings accounts.

Comparing with Savvy will allow you to find an account which secures you the best growth on the money you invest. You can get a side-by-side comparison of the deals on offer with us here so you can easily see which interest rate and conditions are best for you.

What types of savings accounts are best for investing?

Term deposits

Term deposits let you set and forget your money for a set period. You will have to make an upfront deposit to open an account, in the ballpark of $1,000 to $5,000, and secure the funds for a set term. These terms can be anywhere from one month to five years. Interest on a term deposit is paid monthly, annually or upon maturity, depending on the term you choose. You can only access your money upon maturity or by providing 31 days’ written notice to your financial institution. You can use Savvy’s compound interest calculator to give you an estimate of how much you’ll earn from your savings account.

High interest savings accounts

High interest savings accounts offer more competitive rates to help your account balance grow. They offer bonus high interest rates which are conditional on you meeting monthly spending, balance and deposit requirements. For instance, you may have to deposit more than $250 every month and make no withdrawals to earn the highest interest. These accounts give you the ability to withdraw and deposit at any time but tend to come with fees such as monthly account keeping charges, which can be up to $5. Comparing with Savvy will allow you to find a savings account with a set of conditions you can easily afford to meet every month to keep you earning the top rate.

Business savings accounts

Business accounts give you a spot to park funds you don’t use for day-to-day expenses. Tailored to small business owners or the self-employed, money in these accounts can only be used for business-related purchases. Business savings accounts often come with introductory interest rates, allowing you to earn a higher rate for a period of up to six months before reverting to a much lower base rate.

Retirement savings accounts

Also called superannuation accounts, these allow you to put money towards your retirement while you’re working. They’re seen as a low-risk alternative to a super fund because its performance is controlled by an interest rate, not the performance of the share market. The account is governed by many of the same rules as super funds, including limiting access to your funds. Like a super fund, you’ll only be able to withdraw from your fund upon retirement or if you’ve reached preservation age (between 55 and 60 years old).

Pensioner savings accounts

Hybrids of savings and transaction accounts, these give pensioners and retirees and place to stash their cash. A pensioner savings account gives you increased flexibility without forcing you to forfeit your higher interest rate. Because of the nature of these accounts, you won’t be able to earn as high an interest rate, but their value to pensioners comes in large part through their accessibility and simplicity compared to having multiple accounts.

How do savings accounts compare to other methods of investing?

Savings accounts have a lower rate of return in comparison to other investment methods, such as property or shares. However, they’re more accessible and stable forms of investment for those who don’t wish, or don’t have the money behind them, to invest in the property or stock market. Compared to the hefty deposits needed for houses, savings accounts may only require a few dollars to open. If you choose to invest in a savings account, comparing with Savvy will help you find an account to get the best bang for your bucks.

Investing in property can result in more than double or triple the rate of return of a savings account, while investing in the stock market can add up to five times the rate of return on a liquid investment (or more). However, these investments come with greater market volatility and more reliance on external factors (such as renters), meaning there’s more of an element of risk attached compared to savings accounts.

In comparison, opening a savings account is seen as a safer form of investing. Account growth is determined by an interest rate and as long as you don’t tap into your funds, your balance has nowhere to go but up. Balances are protected by the government-backed Financial Claims Scheme. The scheme protects balances of up to $250,000 in the event your financial institution crashes.

Types of savings account

Why compare savings accounts with Savvy?

Frequently asked savings account questions

How can I open an investment savings account?

You must be at least 14 years old and have an Australian residential address to open an investment savings account. The same age restriction applies to term deposits, although some institutions will require that you be at least 18 when opening your account.

What documents do I need to open an account?

You’ll need to supply 100 points of ID to open an account. To reach this, you can submit two of the following: 

  • An Australian or foreign-issued passport (70 points) 
  • Birth certificate (70 points) 
  • A government-issued driver’s licence (40 points) 
  • Employee ID (40 points) 
  • Student ID (40 points) 
  • Medicare card (25 points) 
Should I consider introductory offers?

Typically, introductory offers are more suited to short-term savers. It’s worth comparing offers with Savvy to see if an account has a high base rate, but generally their rates aren’t as competitive.

Can I open a joint investment savings account?

Yes – many of the accounts suited for investments allow two or more signatories. Having two people depositing into the same pool of money can be an efficient way of reaching a shared goal. You can use Savvy’s savings calculator to estimate how much you could earn at different rates and over different periods. These accounts give you ‘one to sign’ or ‘both to sign’ protection options. It’s also important to discuss with your partner or associate/s what happens to the funds if you decide to close the account.

How do I know how much to deposit into my savings account?

A savings account geared towards investment will likely come with a minimum deposit requirement. However, you may have a savings goal and need to work out how to meet it. You can use Savvy’s goal calculator to work out how much you need to contribute to reach your target.

Our savings calculators

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