Fact checked
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 |
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Rabobank’s High Interest Savings Account helps grow your savings while offering flexibility and easy access to your money.More details |
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Use invite code SAVVY10 for $10 upon successful sign-up. (Refer to offer T&Cs on Up website)More details |
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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.
As the old saying goes, the only unavoidable things in life are death and taxes. The latter will apply when you open a savings account, with the interest you earn counting as taxable income unless you’re in the tax-free threshold.
That’s why comparing with Savvy is important. You can find an account with a competitive rate and low fees so you have more cash left over after tax time. Read Savvy’s comprehensive guide to savings accounts and how to estimate the amount of tax you’ll have to pay.
No – tax-free savings accounts don’t exist in this country. Under Australian tax law, you must declare any earnings on bank accounts when filing your tax return. How much you pay on this money will depend on your gross income, not solely the money you earn in your savings account.
Your best shot at paying less tax is finding an account with a high interest rate and low fees. This will leave more money in your pocket once you’ve removed the tax you need to pay. Savvy helps with this by allowing you to compare and find the best account for you to help boost the interest you earn.
Accruing interest on the money you have in a savings account, in turn, earns you money. As such, it’s seen as an income stream in the eyes of the Australian Taxation Office (ATO). Even if you fall into a low-income bracket, you must still declare your interest in your tax return. Because of this, when you’re filing a tax return at the end of the financial year, you need to declare your interest alongside any other earnings for that period, such as your salary.
You’ll have to declare interest on money which otherwise wouldn’t be subject to tax, including lottery winnings or money gifted to you. If you opened an account without a tax file number (TFN), your financial institution will automatically deduct tax from your interest payments.
Finding out how much interest you’ve earned over 12 months is relatively straightforward, as your institution will send you regular bank statements showing the amount of interest you’ve earned. You should also be able to find this on your internet banking app.
Financial institutions report interest earnings to the tax office, who matches this with the information provided in tax returns. Penalties or refunds can apply if there are discrepancies.
The amount of tax a person pays is determined by their gross income. This income is subject to a tax rate which varies depending on how much you earn each year. The tax brackets are as follows:
Comparing savings account deals with Savvy is your best shot at finding a great offer which suits your needs. Getting the best deal can avoid your hard-earned interest being eaten up at tax time, leaving more money in your account. Variables to watch out for include:
Look at the interest rate
Your bank balance will grow faster if you have a high interest rate. Take this simple calculation: if you deposited $100 a week in an account with an interest rate of 2% p.a. for five years, you’d earn $600 more in interest than if you invested in an account bearing 1% p.a. By comparing options with Savvy, you can find a savings account with the most competitive interest rate on the market. Savvy’s easy-to-use savings calculator can help you estimate your savings growth.
Account accessibility
Everyone uses their money differently, so it’s important to weigh up what access you need from an account before opening one. Otherwise, you could be caught short if you can’t easily access funds. For instance, term deposits will lock your money away, while online savings accounts will give you easier access. Also, make sure you can easily make deposits through internet banking or a mobile app. You can even use Savvy’s handy online calculator to work out how much to deposit to achieve your savings goal.
Assess account requirements
No two savings accounts are the same. Some will come with opening balance or minimum deposit requirements in exchange for you earning a higher rate. Making more than a set number of withdrawals (such as two to five) in a month could also jeopardise your high rate. You can make use of Savvy’s side-by-side comparison table to weigh up which account has conditions you can afford. This will prevent you from picking a set of benchmarks you’ll struggle to meet.
Weigh up interest with any fees
Banks can charge you for using one of their accounts to store your money. Monthly fees for account keeping (up to $5), statements or transactions (up to $2.50) can add up over years, so it’s important to compare with us to find the most affordable option for you.
Consider introductory rates
Institutions offer introductory rates as sweeteners to get customers to open accounts with them. These rates provide a short period of high interest, usually about three to six months, before reverting to a much lower base rate. A low base rate could cost you in the long run, so it’s important to assess whether an introductory rate is suitable for your goal.
Check linked account requirements
Linked everyday accounts can provide you with a quick and easy place to transfer your savings when you see fit. However, some financial institutions have strict rules around opening one with an opposing bank. This is worth comparing, particularly if you want to keep using an external account.
You won't have to pay a cent to compare savings accounts with us, so you can do so at any time you like.
There's no need for you to worry about visiting any banks, as you can compare accounts and open one online.
We're partnered with trusted financial institutions around Australia to bring more quality to your comparison.
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.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
