Why Your Savings Account Matters
With interest rates at their highest in over a decade, choosing the right savings account can earn you hundreds or even thousands of dollars per year in interest. The difference between the worst and best savings rates in Australia can be over 4% — on $50,000, that is $2,000 per year in lost earnings if you are with the wrong bank.
Top Savings Accounts Compared
| Bank | Base Rate | Bonus Rate | Total | Conditions |
|---|---|---|---|---|
| ING Savings Maximiser | 0.55% | +4.70% | 5.25% | Deposit $1,000/month, 5+ card purchases |
| Ubank Save | 4.90% | +0.20% | 5.10% | Deposit $200/month |
| Macquarie Savings | 4.75% | +0.25% | 5.00% | Deposit $200/month, no withdrawals |
| Up Saver | 0.10% | +4.90% | 5.00% | 5+ card purchases/month |
| ANZ Plus Save | 4.00% | +0.90% | 4.90% | Grow balance each month |
Understanding Bonus Interest
Most high-rate accounts require you to meet conditions each month to earn the bonus rate. Common conditions include depositing a minimum amount (usually $200-1,000), making a certain number of card purchases, or not making withdrawals. If you fail to meet conditions in a month, you only earn the much lower base rate. ING for example drops to just 0.55% if you miss the conditions.
Tips for New Migrants
When you first arrive, the Big 4 banks (CommBank, ANZ, Westpac, NAB) are easiest to open an account with as they have branches everywhere and accept passport-only verification. However, their savings rates are typically lower. Once settled, consider opening a second account with a high-interest provider like ING or Ubank for your savings while keeping your everyday account with a Big 4 for ATM access and branch services.
Remember that interest earned in Australia is taxable income. You will need to declare it on your tax return. The bank will report it to the ATO automatically. If you earn over $120 in interest, the bank may withhold tax if you have not provided your TFN.