How the Finder Score helps you find a better savings account
The Finder Score is a simple score out of 10. The higher a savings account's score, the better we think it is for the average customer.
We score each savings account in our database of hundreds based on a data-driven methodology with 2 main criteria: Does the account offer a high interest rate? And is it easy for savers to actually earn that rate?
Bank of Queensland Future Saver Account (14-35 year olds) has a Finder Score of 9.61. It lets savers earn a maximum rate of 5.5%. As the name suggests, you need to be aged between 14 and 35 to open this account. You'll also need to deposit $1,000 a month to get the maximum rate.
Market update by Alison Banney – Finder money editor
What is a high interest savings account?
A high interest savings account is designed for people who want to build up their savings and earn more interest than a standard bank account.
Savings accounts don't usually come with a debit card because they're not designed for everyday spending. That's what a transaction account is for.
Key things to know about high interest savings accounts
Account conditions. Many banks offer a higher interest rate if you meet certain conditions, like depositing $1,000 each month or growing your balance.
Bonus interest rates. Most high interest savings accounts only really give you a high rate if you meet the conditions. This bonus rate is added to the base or standard rate.
Ongoing versus introductory interest rates. Most accounts offer an ongoing rate. As long as you meet the criteria, you'll earn that rate each month. Introductory savings rates are often very high, but only last a few months. Then you drop to a lower rate.
Deposits guaranteed up to $250,000
In Australia, money in a savings account with many banks is protected by the Financial Claims Scheme. In the unlikely event that your bank fails, money in your account is guaranteed up to $250,000.
How to compare high-interest savings accounts
Find an account with a high-interest rate
For any saver, the higher the rate the better. Right now, many banks offer savings account interest rates above 5%.
But there's a little more to it. Banks break savings rates into 3 parts:
The standard variable interest rate. This is the base or default rate you get before any bonus rate comes into effect. It's often low.
The bonus interest rate. If you meet all the account's conditions you'll qualify for the bonus rate. This is added to the standard rate.
The maximum savings rate. When you combine the standard and bonus rates, the total is considered the maximum savings rate. Your goal is to earn this rate on your savings each month.
Example: deciphering your savings rate
Let's say your bank is offering a high-interest savings account with the following rates:
2.5% p.a. standard variable rate.
3.0% p.a. bonus rate.
5.5% p.a. maximum variable rate.
If you meet the bonus conditions each month you'll earn the maximum variable rate of 5.5% p.a. If you don't meet the account conditions one month, you'll only earn the standard rate of 2.5% p.a. for that month. You'll be able to earn the maximum variable rate the following month if you meet the conditions.
Check the account conditions (and make sure you can meet them)
Deposit requirements. Many accounts require you to deposit a set amount each month, typically between $1,000 and $2,000.
Grow your balance. You may need to end the month with more money in the account than at the start. This means you can withdraw some money, but must deposit more than you withdraw.
Withdrawals. Some accounts specify that you make no withdrawals in a month to earn the bonus interest.
Transaction requirements. Some high-interest savings accounts require you to make a number of transactions each month. This is usually a requirement to spend money using a linked transaction account.
Balance limits or tiers. Many banks limit the bonus interest you can earn based on your account balance. For instance, you may earn 5.3% p.a. on balances up to $250,000, and only earn 2.00% p.a. on any money beyond $250,000.
A savings account with a high rate isn't helpful if you can't meet the account conditions. The best savings account for you is one with sonditions you can meet each month.
If you're only able to save $800 a month, then you don't want an account that requires you to deposit $2,000 each month to get the maximum interest rate. Instead, you're better off choosing an account with a slightly lower rate and conditions you can actually meet each month.
Understand how savings account rates impact how much interest you earn
Most banks calculate interest on your savings daily and pay it to you monthly. If you have an ongoing rate, that's what you'll earn each month if you meet all the conditions.
If you have an introductory rate, your rate will decrease after the introductory period.
If you have a decent amount of money to deposit, a high introductory rate can sometimes beat a competitive ongoing rate.
High interest savings rate vs regular savings rate
It might not seem like much of a difference, but a higher rate can help you save a lot more money thanks to the power of compound interest.
In the below example, we've used an initital deposit size of $40,616, which is the average Australian's savings according to Finder's Consumer Sentiment Tracker, and assumed ongoing monthly deposits of $1,000.
Savings Account
Max interest rate p.a.
Interest earned in 12 months
Regular savings account
4.75% p.a.
$2,236
High interest savings account
5.60% p.a.
$2,646
After just 12 months you'd be $410 better off by simply opting for an account with a slightly higher interest rate.
High-interest savings accounts: What features do Australians find most important?
Finder surveyed 1113 Australians in January 2024 and asked them which 3 features matter most when choosing a savings account.
"My partner and I have been trying to get the absolute most out of our bank account. Our main bank gave us next to nothing. Then we moved to the absolute best ongoing rate, but quickly found there is more to it than that. When a family member needed a loan, we found that we'd lose our monthly interest once we sent them the money because we wouldn't be able to grow the total balance that month. Ubank is a great option because it doesn't require you to grow the balance each month – only to deposit $500 – and still offers one of the best rates on the market."
Rates obsessed. We nerd out over RBA decisions and monitor the market daily to make sure you get the best interest rates on your well earned savings from banks big, small and digital (and the odd credit union).
Interest without hidden stuff. Whether you want higher rates with a few conditions, or just want the simple life with your cash, we've dug into the details of over 180 Aussie accounts so you can get the most bang for your bucks.
No BS. We don't have a call centre, we're not owned by a bank. Heck, you don't even need to give us your email. Our job is to get your money to work harder and let that sweet interest grow.
Frequently asked questions
A bank typically sets savings rates based on these factors:
The Reserve Bank's cash rate target. This rate affects banks' short-term borrowing costs and is a benchmark for savings accounts, home loans and more.
Competition. Banks are competing with each other and rarely set savings rates much higher or lower than competitors.
Strategy. If a bank wants to attract more customer deposits it may increase savings rates and market its accounts more aggressively.
Banks typically calculate interest daily and pay it out monthly. At the end of the day, interest is calculated based on the closing balance.
Interest in your savings account compounds, meaning that the interest you earn in one month is added to your account's funds. Then you earn interest based on the total amount of funds in the account, including the previous month's interest.
Interest can be compounded daily, monthly or annually.
Yes. Any interest you earn counts as income and is taxed at the same rate as your salary. You must include it when doing your tax return.
No bank account is completely free from fees. But many high interest savings accounts have no monthly account keeping fee or upfront application fee.
Do you want to build up your savings while earning interest?
Do you have a regular income that you can set aside each month?
Do you want to grow your savings rather than spend it, but still need to be able to access the money just in case?
If this is you, then a high interest savings account is worth considering.
These accounts are less suitable if you:
Need a flexible bank account for everyday spending. You'd be better off using a transaction account.
Want to put aside a chunk of money, earn interest and forget all about it. You could look at a term deposit instead.
Want to see a strong return on your money and have an appetite for risk. You could consider investing instead.
As inflation has begun to slow in 2024, more economists have predicted that this may be the peak of interest rates for the time being. Rates may even begin to fall later in the year, although it's very hard to predict at this point.
With a term deposit you put the money away and don't touch it for months or even years. There are no other conditions.
With a savings account you have to make regular deposits if you want the maximum interest rate. But if you need the money in a hurry it's easier to access.
Term deposits and high interest savings accounts have similar rates at the moment. In fact, the best savings accounts actually offer slightly higher interest rates right now.
Here are the high interest savings account rates currently on offer with the Big Four banks:
Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio
Richard's expertise
Richard has written 554 Finder guides across topics including:
Alison Banney is the money editorial manager at Finder. She covers all areas of personal finance, and her areas of expertise are superannuation, banking and saving. She has written about finance for 10 years, having previously worked at Westpac and written for several other major banks and super funds. See full bio
Alison's expertise
Alison has written 626 Finder guides across topics including:
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Rates obsessed. We nerd out over RBA decisions and monitor the market daily to make sure you get the best interest rates on your well earned savings from banks big, small and digital (and the odd credit union).
Interest without hidden stuff. Whether you want higher rates with a few conditions, or just want the simple life with your cash, we've dug into the details of over 180 Aussie accounts so you can get the most bang for your bucks.
No BS. We don't have a call centre, we're not owned by a bank. Heck, you don't even need to give us your email. Our job is to get your money to work harder and let that sweet interest grow.
