Canstar reveals its 5-Star savings and transaction accounts for 2020

Are you looking for an outstanding value place to keep your cash or manage your day-to-day spending? Canstar reveals which institutions are offering 5-Star Rated savings and transaction accounts.

The official cash rate is sitting at a record low of 0.25%. Although the Reserve Bank of Australia did not lower the rate further this week, Canstar saw a number of banks reduce their savings account interest rates, possibly in anticipation of a cut.

In this ultra-low interest rate environment – and with Australians saving more of their income than they have in over four decades according to the latest data from the Australian Bureau of Statistics (ABS) –  it’s perhaps more important than ever for consumers to shop around for a competitive return from their savings accounts. When it comes to transaction accounts, the focus for many is finding a product that provides a combination of low fees and features that offer flexibility, ease of use and security.

To help Aussies find a high-value place for their money, Canstar analysed 408 savings and transaction accounts from 68 providers on its database. After crunching the numbers, Canstar gave 65 products a 5-Star Rating across various consumer profiles.

Accounts were assessed based on both their price and features. As part of the price score, Canstar Research looked at the ‘net benefit’ that customers could get from the account – that is, the interest earned less any account-keeping or transaction fees. For the features score, the team considered factors such as transaction options and the interest conditions of the account.

All of the providers included in Canstar’s Star Ratings are authorised deposit-taking institutions (ADIs). This means that deposits up to $250,000 are covered by the Federal Government under the Financial Claims Scheme. As the economic challenges brought on by COVID-19 continue, this safety net could help provide some peace of mind.

Which savings accounts received a 5-Star Rating?

Find out which savings accounts received a 5-Star Rating for each consumer profile.

1. Flexible savers

Flexible savers are those who are looking to maximise their savings while still having the flexibility to access their savings without it impacting their interest rate.

Institution Product
86 400 Save Account
AMP Bank Saver Account
Bank of Sydney BOS Saver
CUA eSaver Flexi
CUA eSaver Reward
Heritage Bank Online Saver
ING Savings Maximiser
Macquarie Bank Savings Account
ME Bank Online Savings Account
MOVE Bank Express Saver
MOVE Bank First Home Saver Club Account
Rabobank Australia High Interest Savings Account
UBank USave Savings Bonus
Volt Bank Save Account

2. Regular savers

Regular savers are more active savers than flexible savers. They are willing to meet stricter conditions to get bonus rates of interest.

Institution Product
86 400 Save Account
Australian Unity Active Saver
Bank of Sydney BOS Saver
BOQ Fast Track Saver
CUA eSaver Reward
ING Savings Maximiser
ME Bank Online Savings Account
MyState Bank Bonus Saver
Rabobank Australia Notice Saver 60 Day
Rabobank Australia Notice Saver 90 Day
Suncorp Bank Growth Saver Account
UBank USave Savings Bonus
Up Up Savers
Volt Bank Save Account

3. Senior savers

Senior savers are retirees who are looking to make the most of their savings while having the flexibility of having easy access to their money with no restrictions.

Institution Product
BankVic Pension Plus
Macquarie Credit Union Gold Retirement Account
Queensland Country Bank Pension Plus
Teachers Mutual Bank Pension Advantage
The Mutual Bank Retirement Account
UniBank Pension Advantage

4. Junior savers

These savings accounts are designed specifically for children (under 12s). They aim to help teach financial literacy and get kids into the habit of saving regularly.

Institution Product
bcu scoot’s super saver
CUA Youth eSaver
Newcastle Permanent Smart Saver Account (Under 25)

5. SMSF Savers

SMSF savers are those looking to receive high levels of interest on the cash component of their self-managed super funds.

Institution Product
AMP Bank SuperEdge Saver
Geelong Bank Superfund Maximiser
HSBC Flexi Saver
Qudos Bank DIY Super Saver

Which transaction accounts received a 5-Star Rating?

The following transaction accounts received a 5-Star Rating for the different consumer profiles.

1. Low transactors

Low transactors are those who make 10 transactions per month on average.

Institution Product
Bank of Melbourne Complete Freedom
Bankwest Easy Transaction Account
Bankwest Hero Transaction Account
Beyond Bank Purple Transactor Account
HSBC Day to Day Account
HSBC Everyday Global Account
Macquarie Bank Transaction Account
MyState Bank Glide Account
NAB Cash Manager
NAB Classic Banking
Suncorp Bank Everyday Options Account

2. High transactors

High transactors make about 60 transactions per month.

Institution Product
ANZ Access Advantage
Bank of Melbourne Complete Freedom
BankSA Complete Freedom
Bankwest Hero Transaction Account
Commonwealth Bank Smart Access
HSBC Day to Day Account
HSBC Everyday Global Account
ING Orange Everyday
Macquarie Bank Transaction Account
NAB Classic Banking
St.George Bank Complete Freedom
Suncorp Bank Everyday Options Account
Westpac Choice

3. Youth transactors

Youth transactors are those between the ages of 13 and 18 who are looking to save, access and manage their money.

Institution Product
ANZ Access Advantage
Bank of Melbourne Complete Freedom
Bank of Melbourne Complete Freedom Student
BankSA Complete Freedom Student
Bankwest Easy Transaction Account
Beyond Bank BU Savings Account
Commonwealth Bank Smart Access
HSBC Day to Day Account
HSBC Everyday Global Account
NAB Classic Banking
St.George Bank Complete Freedom Student
Suncorp Bank Everyday Options – Student
Westpac Choice

4. Senior transactors

Senior transactors are retirees who make an average of 10 transactions per month.

Institution Product
Bank First Pension Account S9
Bank of Melbourne Complete Freedom
Bank of Melbourne Retirement Access Plus
BankSA Retirement Access Plus
Bankwest Retirement Advantage Account
Beyond Bank Retirement Account
Commonwealth Bank Pensioner Security Account
Heritage Bank Pension Plus Account
Macquarie Bank Transaction Account
Queensland Country Bank Pension Plus
St.George Bank Retirement Access Plus
Suncorp Bank Everyday Options Account
The Mutual Bank Retirement Account
Westpac 55+ and Retired

For more information about how Canstar’s Savings and Transaction Accounts Star Ratings are determined, view the methodology report. You might also want to check out which institutions won Canstar’s 2020 Savings Award and Everyday Banking Award.

This article was reviewed by our Sub Editor Jacqueline Belesky and Finance Editor Sean Callery before it was published, as part of our fact-checking process.

Main image source: Jirapong Manustrong (Shutterstock). 

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