Best high interest rate savings accounts in Australia

The Reserve Bank of Australia (RBA) has cut the cash rate for the second time in 2025 at its May board meeting. Home loan borrowers may rejoice to see interest rates continue to drop, however, savers may see a dip in their savings account rates. With that in mind, it could be a good time for savers to start reviewing what’s on offer to see if they have the best savings interest rate on the market.

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The best high interest savings accounts on Canstar’s database

Looking for a competitively high rate for your savings? Reviewing the best high interest rate accounts on our database may help you decide.

At the time of writing, the highest interest rate listed on Canstar’s database for a savings account is 5.25%, however, this is a bonus savings account rate and is subject to certain conditions.

To help you find the best high interest rate savings account for your needs, let’s take a closer look at some of the high interest savings accounts available on Canstar’s database, including ones with introductory offers, high interest base rates and bonus related savings accounts.

The table below shows promotional savings accounts on Canstar’s database with rates based on a deposit of $10,000. These accounts come with introductory promotional rates which are available for a limited time, but excludes accounts that also have bonus conditions to earn the total rate.

Highest promotional savings account rates

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Provider	Account	Base Rate	Intro Rate	Total Rate	Intro Period
	High Interest Savings Account	3.70%	1.45%	5.15%	4 months
	Easy Saver	3.60%	1.55%	5.15%	4 months
	Savings Account	4.50%	0.35%	4.85%	4 months
Bank of China	Online Saver	1.85%	3.00%	4.85%	3 months
Newcastle Permanent	Online Savings Account	1.00%	3.75%	4.75%	3 months
	Bonus Saver	0.25%	4.50%	4.75%	4 months
	Hi Saver Account	0.25%	4.50%	4.75%	4 months

Source: www.canstar.com.au – 02/06/2025. Based on savings accounts on Canstar’s database, with rates based on a deposit of $10,000. Based on accounts with an introductory promotional rate available for a limited time. The top 7 selected and table sorted in descending order by total rate, followed by base rate. Bonus rates may apply, check with the provider for more information. Canstar may earn a fee for referrals. Consider the Product Disclosure Statement (PDS) and Target Market Determination (TMD), before making a purchase decision. Contact the product issuer directly for a copy of the PDS and TMD.

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The table below shows savings accounts on Canstar’s database with rates based on a deposit of $10,000. These accounts have the highest base rates and exclude accounts with bonus conditions to earn the total rate and accounts with an introductory promotional rate.

Highest base savings account rates

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Provider	Account	Base Interest Rate
Australian Unity	Freedom Saver	4.85%
Police Bank	U30 Super Charge	4.75%
Heartland	MySavings	4.50%
	Savings Account	4.50%
	Simple Saver	4.30%

Source: www.canstar.com.au – 02/06/2025. Based on savings accounts on Canstar’s database, with rates based on a deposit of $10,000. Top 5 selected and table sorted in descending order by base interest rate, followed by alphabetically by provider. Bonus and/or promo rates may apply, check with the provider for more information. Canstar may earn a fee for referrals. Consider the Product Disclosure Statement (PDS) and Target Market Determination (TMD), before making a purchase decision. Contact the product issuer directly for a copy of the PDS and TMD.

Highest savings interest rates with some strings attached

Outside of bonus introductory interest rates, which often only last for a set period of time, some financial institutions may also offer bonus conditional rates. This is where you need to meet certain conditions to receive the bonus interest each month.

For example, you may need to deposit a certain amount of money into your account each month, make no withdrawals during the month, or have a linked transaction account and make a specific number of card purchases each month.

Be aware that for some of these accounts, if you fail to meet the bonus interest conditions, you’ll receive little or no base interest. Check with the provider to confirm what conditions may apply.

The table below shows savings accounts with a conditional bonus rate on Canstar’s database, with rates based on a deposit of $10,000.

Highest bonus saving account rates

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Provider	Account	Base Rate	Bonus Rate	Total Rate	Monthly Bonus Conditions
BOQ	Future Saver 14-35 yrs old	0.05%	5.20%	5.25%	Deposit $1,000 & make 5 eligible purchases on linked Everyday Account each month
	Boss Saver	0.45%	4.55%	5.00%	$500 is deposited into your Access Account & make 5 eligible Visa Card transactions each month
	Savvy Saver	0.45%	4.55%	5.00%	$500 is deposited & at least 5 eligible Visa Card transactions are made in the calendar month
Westpac	Life – 18-29	0.40%	4.60%	5.00%	Grow balance & make 5 debit transactions on linked Choice account each month
MOVE Bank	Growth Saver	0.10%	4.90%	5.00%	Deposit a minimum of $200 & make no withdrawals within a calendar month
ING	Savings Maximiser	0.05%	4.95%	5.00%	Deposit $1,000, grow your balance & make 5 card transactions each month
RACQ Bank	Bonus Saver Account	0.01%	4.99%	5.00%	Deposit $100 & make no withdrawals each month

Source: www.canstar.com.au – 02/06/2025. Based on bonus savings accounts on Canstar’s database, with rates based on a deposit of $10,000. Top 7 selected and table sorted in descending order by total rate, followed by base rate, followed by alphabetically by provider. Promo rates may apply, check with the provider for more information. Canstar may earn a fee for referrals. Consider the Product Disclosure Statement (PDS) and Target Market Determination (TMD), before making a purchase decision. Contact the product issuer directly for a copy of the PDS and TMD.

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You can compare a wider range of savings accounts by using Canstar’s savings account comparison tables, which can also be viewed on the Canstar app. Canstar researches and rates more than 200 savings accounts. Find out which ones received an Outstanding Value Award in 2025.

If you’re looking for other ways to boost your savings, check out our guide to budgeting and savings apps. There are even ways AI can help you save.

What is a high interest savings account?

In Australia, financial institutions such as banks, credit unions and other deposit-taking institutions (DPIs) generally offer a transaction account or savings account, or a combination of the two.

Savings accounts are designed to earn you interest while limiting withdrawals, and, unlike a transaction account, usually don’t allow for cash withdrawals or direct spending through the account.

How do high interest savings accounts work?

High interest savings accounts often come with certain terms and conditions, such as limited withdrawals and a set amount that must be deposited into the account each month in order for your savings to accrue the higher interest rate.

These terms and conditions are often put in place to encourage you to regularly deposit into your savings account and withdraw less, which typically results in more interest being earned.

Another common feature to a high interest savings account is the opportunity to earn compound interest. Compound interest basically allows you to earn interest on the interest you’ve already earned and is calculated as a percentage of the balance in your savings account.

In other words, you’re able to earn interest on whatever the current balance is in your savings account, even if part of that balance comes from the interest previously paid by the financial institution.

To give you a better idea, here’s an example of the kind of interest you could potentially earn on a savings account with compound interest.

The table below shows the accumulated interest earned for a $10,000 deposit into a savings account with compound interest at 5.00% per annum that’s paid monthly (and with no additional deposits made).

Compound interest over time on a $10,000 deposit

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Source: www.canstar.com.au. Interest calculated based on a $10,000 starting balance, interest rate of 5.00% – interest calculated daily and paid monthly.

Key differences between savings accounts and transaction accounts

• Higher interest rates: One of the main features of a savings account is the ability to earn interest, which is typically not present in a transaction account.

• Variable interest rates: Another aspect to a savings account is the impact of variable interest rates, which can go up or down depending on the economic conditions (e.g. the cash rate). This is unlike a term deposit, which locks in a certain interest rate for a set period of time.

• Compound interest: A common feature to high interest savings accounts, compound interest allows you to earn interest on the interest you’ve already earned and is calculated as a percentage of the balance in your savings account.

• No account fees: The majority of savings accounts have no associated ongoing account fees, but often require a linking transaction account, which might have an account fee. You may also be charged a fee for certain transactions or if you require over-the-counter services or ATM access.

• Accessibility: Although not as accessible as a transaction account, you can generally transfer money out of your savings account at any time. This means if you suddenly require the funds, you’re able to access your savings. Just be mindful you may lose out on any conditional interest linked to the account for that month (if your account has a conditional interest rate).

High interest savings accounts also tend to have terms and conditions that need to be met for the account to accrue higher interest than a standard savings account.

How to find the best high interest savings account

Although a high interest savings account yields high returns on your savings, the interest rate shouldn’t be the only thing you consider. The best savings account for you will differ depending on your needs and circumstances, so you should consider the following questions when comparing accounts:

• What type of saver are you? Are you a regular saver who can abide by stricter saving conditions for higher interest rates? Or do you need flexibility that allows you to save without worrying about any finer details?

• What is the interest rate? Although it isn’t the only factor to consider, when it comes to savings the higher the interest rate, the quicker your savings will grow.

• Are there any interest rate conditions? If there are certain conditions that need to be met in order to acquire the high interest, do they match your saving style? If there are a number of requirements to meet, do you think you’re able to keep on top of them each month?

• What are the account fees? Fees can erode your savings, so it’s best to search for a fee-free account, or one that waives fees if you meet certain conditions. Check for account fees and any transaction fees that may apply.

• Does the account have any useful features? It’s also worth considering if there’s a linked transaction account and what features it provides. For example, some of our 5-Star Rated bank accounts offer refunds on international transaction fees or cashback on eligible purchases or bills.

What are the benefits of a high interest savings account?

The main benefit of a high interest savings account is the interest you’ll earn and that it’s one of the easiest and least risky ways to grow money you may have stored away. This low associated risk comes from the Australian Government’s Financial Claim Scheme (FCS), which guarantees deposits up to $250,000 per account holder per authorised deposit taking institution (ADI).

On top of that, it’s also flexible, so you’re generally able to deposit or withdraw your savings at any time.

To maintain your high interest savings, you could also automate them by setting up a recurring payment transfer between your transaction and savings accounts or request that your employer pay your wage directly into your savings account.

Unlike a term deposit, the flexibility of a high interest savings account may mean it’s easier to budget and manage emergency funds while still being able to accrue interest from your savings.

But keep in mind, some savings accounts only have high conditional interest rates, so if you do end up withdrawing from your savings, it may mean you lose out on the high interest earnings for that month, depending on your account’s terms and conditions. Even so, you can always try to meet the requirements the next month.

Can the interest rate of a high interest savings account change?

Yes, the interest rate you’re offered when opening a savings account may change over time. This is due to most savings accounts having a variable interest rate, which means the rate can change due to economic conditions (e.g. the lowering or raising of the cash rate).

It can be important for savers to keep an eye on the RBA’s cash rate decisions, as the raising of the cash rate could see their interest rate increase, whereas a cut could see their rates fall.

How to apply for a high interest savings account

A savings account can generally be applied for and opened like any other bank account. Depending on the financial institution, you may be able to apply online within minutes. That being said, you may also have to open a linked transaction account first in order to apply for the savings account of your choice.

Some general eligibility requirements to open a savings account in Australia are:

• Be an Australian resident with an Australian postal address

• Provide some form of identification documents (e.g. driver’s licence or passport) and other personal information in order to confirm your identity

• Provide your tax file number (TFN) if you don’t wish the bank to withhold tax on the interest you’re paid

• If you’re a minor (those under 16), you may require the assistance of a parent or guardian in order to open an account.

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