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.

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.

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.

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.

5. SMSF Savers

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

Compare Savings Accounts

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.

2. High transactors

High transactors make about 60 transactions per month.

3. Youth transactors

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

4. Senior transactors

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

Compare Transaction Accounts

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).