Savings account interest rates

The lowdown on Finder Score

• 9+ Excellent - These savings accounts offer high interest rates with minimal conditions or restrictions, making it easier for you to earn the most interest possible.
• 7+ Great - These savings accounts have quite competitive interest rates and relatively minimal conditions and restrictions.
• 5+ Satisfactory - Usually these savings accounts offer average or slightly above average rates and require you to meet several conditions before you can get the maximum rate
• Less than 5 – Basic - These accounts have poor interest rates and make it much more difficult to qualify for the maximum interest rate.

Digging deeper into the Finder savings account score

How do you truly find the best savings accounts on the market? There's fees, rates and so many different conditions and limits, it's hard for the average person to keep up.

That's where the Finder Score comes in. The score is a simple way for you to compare savings accounts at a glance.

Here's how the scores work:

• We analyse hundreds of savings accounts in our database, from the Big Four banks to online banks and local credit unions.
• We assess each savings account based on how competitive the interest rate is.
• We also evaluate each account based on what kind of conditions and restrictions the account has (some banks make it easy to earn the max rate, some don't).

To calculate how much interest a hypothetical customer could earn with each account we use the following scenario:

• The account has a starting balance of $36,000. We assume you meet any monthly conditions required to get the bonus rate where applicable.
• Interest is calculated daily and accrued monthly over a 2 year period.

• How Finder Score is calculated

  The Finder Score methodology is designed by our insights and editorial team. We review products objectively. Commercial partnerships do not affect the scores.

  Reading the fine print: how Finder Score is calculated

  The Finder Score uses 8 data points to evaluate savings accounts. Each data point is weighted differently based on their importance to the customer.

  Finder Score weightings - savings accounts

  Component	Weighting
  Interest earned	90%
  Min deposit condition	2.50%
  Temporary restrictions	0.50%
  Age restrictions	0.50%
  Withdrawal restrictions	3.00%
  Purchase restrictions	2.00%
  Max balance restrictions	0.50%
  Notice restrictions	1.00%

What to look for when comparing savings accounts

A high interest rate

When selecting your savings account, the interest rate is key. A higher rate means greater growth potential for your balance.

Conditions you can meet

Check what conditions you need to meet to earn the bonus or introductory rate and make sure you can easily meet them.

No fees

Most banks don't charge a monthly fee for a savings account. If you're looking at a savings account that does charge a monthly account fee, know that this is not the norm and most accounts have no fees.

Easy access to your money

Some savings accounts allow you to withdraw money a few times each month, while some require you make no withdrawals at all. If you need regular access to your savings, pick a savings account that has no limits to withdrawals.

Linked accounts

Some banks require you to link your savings account with an everyday account in the same bank to qualify for their interest rate or bonus rate. If you do need to get a bank account with the same bank, make sure the bank account doesn't charge high fees.

Deposit requirements

Some savings accounts will require you to deposit just $20 each month in order to earn bonus interest, while others will require much higher monthly deposits (some up to $2000 a month). Choose one that fits in with your ability to save.

Savings tip

When looking at savings account conditions, there's a difference between having to deposit money and growing your balance.

If you need to deposit a set amount per month, this doesn't necessarily mean you have to keep it in the account after you've deposited it. Once the money lands in the account, you've met the condition to earn bonus interest and you're free to withdraw the money again if you need to.

But if you need to grow your balance by a certain amount, then the money does need to be in there at the end of the month.

Compare CommBank, Westpac, ANZ and NAB savings accounts

The big 4 banks have been increasing their monthly savings rates along with the RBA cash rate increases. CommBank, Westpac, ANZ and NAB do not have the highest rates in the market, however, do offer easy to meet conditions. Check out the savings rates for the big 4 below.

If you're after higher rates than what the big 4 banks are offering, then use our comparison table.

How do savings account interest rates work?

Savings rates explained

• Standard variable rate: This is the base interest rate that you'll earn each month, whether you meet the conditions or not.
• Bonus variable rate: This is the additional interest you'll earn on top of the standard rate when you meet the account conditions (such as meeting a monthly deposit amount).
• Total or maximum variable rate: This is the standard rate plus the bonus rate, and is the total interest rate you'll earn when all the conditions are met.
• Introductory rate: Some savings accounts offer a special, higher introductory rate for the first few months after you open the account. This is an incentive to open the account, but after the introductory period ends the rate will drop to a standard variable rate that's usually much lower.

How do I get the bonus interest rate on my savings account?

For a Bonus Saver account, the bonus interest is usually awarded when you're able to deposit a certain amount per month and make no withdrawals. It doesn't matter if you're a new customer or not, but there may be restrictions on the number of accounts you can have.

There's a difference between a headline rate and base rate. For an Introductory Bonus account, the bonus interest rate is only awarded for the first couple of months (normally up to 4) and you need to be a new customer.

You will also need to be within the balance your bonus rate applies to. In most cases, any balance beyond $250,000 usually earns the standard variable rate.

"At the moment, most of my money is in a high interest savings account because I appreciate the simplicity. I also know I can take some money out relatively quickly if I need to, which is not the case with some other investments that have higher potential returns."

Amy Bradney-George

Personal finance expert

Other ways to earn interest on your money

What type of savings account is right for you?

The type of savings account you choose will depend on the type of saver you are and what you're trying to achieve.

I'm a regular saver: If you can regularly save money each month a bonus saver account with an ongoing bonus rate might be best for you.

I'm just looking for the highest rate: Check out high interest savings accounts (and remember to check the account conditions)

I'm a business owner: There are dedicated business savings accounts for you.

I'm looking for a set-and-forget account with no conditions: Perhaps a term deposit could suit you better, as these don't have any ongoing conditions to meet and are locked until the term expires.

FAQs on savings accounts

• Who has the highest savings rate?

  As of December 2024, the highest ongoing savings rate in the Finder database is the ME HomeME Savings Account, which offers 5.25% p.a. You can get this rate when you deposit $2,000 into the linked SpendME transaction account and grow your balance each month.

  Rabobank's High Interest Savings Account has an even higher rate of 5.6% but only for the first 4 months.

  To find more high interest savings rates, check out our high interest savings accounts page.

• Can you set up a savings account online?

  Yes, the majority of banks allow consumers to set up savings accounts online. This is as easy as completing the application process on the bank's website, which should only take 10 minutes or so. You'll need to verify your identity online, so make sure you have your driver's license or another form of ID handy. Once the application is done, you can download the bank's mobile banking app to start using your account.

• Can you add an overdraft on a savings account?

  No, savings accounts do not usually offer an overdraft feature. This is something that is usually offered with a transaction account instead, as that account is designed for spending while a savings account is designed for saving.

• How is a savings account different from a bank account?

  Bank accounts are designed for your daily spending, and come with a debit card to access your money at shops, ATMs and online. A savings account isn't designed to help you spend, but to help you save, so there's no debit card attached. Savings accounts pay interest on our balance each month, as an incentive to save, while bank accounts typically pay no interest.

  It's not an either or situation: you can have both a savings account and a bank account (in fact it's encouraged that you do!).

• How do I withdraw money from a savings account?

  Savings accounts usually don't come with a debit card like everyday transaction accounts, so you can withdraw money from the account at ATMs.

  To access the money in your savings account, simply transfer your money from your savings to your linked everyday account using your mobile banking app or via Internet banking. If you've got your bank account and savings account with the same bank (this is a good idea!), the money will be transferred instantly which you can then access with your debit card.

  Keep in mind that, depending on the savings account you choose, there may be restrictions as to how often you can withdraw from the account before you forfeit your bonus interest. If you know you want to lock away your funds for a longer period, you may want to consider a term deposit instead of a savings account.

Why you can trust Finder's banking experts

You pay nothing. Finder is free to use. And you pay the same as going direct. No markups, no hidden fees. Guaranteed.

You save time. We spend 100s of hours researching bank accounts so you can sort the gold from the junk faster.

You compare more. Our comparison tools bring you more banking products from across the market.

To make sure you get accurate and helpful information, this guide has been edited by Richard Whitten and reviewed by Serina Bird, a member of Finder's Editorial Review Board.

Written by

Alison Banney

Editor

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:

• Superannuation
• Savings accounts, bank accounts and term deposits
• Budgeting and money-saving hacks
• Managing the cost of living