Best savings account in Australia

Australia’s Government Guarantee scheme

Australia’s government bank guarantee = $250K per Person per Authorised Deposit-taking Instituion (ADI)

Neobanks (digital banks)

A digital bank operates digitally, usually from an app, rather than from a physical branch or office. A digital bank is a fairly loose term; the correct industry name for these banks is a neobank.

A neobank is a completely digital bank that doesn’t use any existing legacy systems to operate. This means the bank doesn’t use any physical infrastructure or digital operating systems that are already being used by existing financial institutions in Australia.

  1. Up
  2. Xinja
  3. Revolut
  4. Pelikin
  5. Qpay

Launching soon (20 Jan 19)

  1. Volt
  2. 86400
  3. Archa

2019

Updated 16 Jan 19

RBA’s cash rate = 1.5% & inflation = 1.9%

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Reviews

Canstar savings award winners: UBank (2018 Bank of the year) & CUA (2018 Customer owned institution of the year)
Barefoot investor best banking deal
Oz Bargain choosing a savings account: Ubank, ING, etc
Oz Bargain poll of best australian savings accounts 2018

Misc

Canstar what is a credit rating
Money best of 2019 = best nbn, best home loan, best kids savings account, etc

Checklist

  1. Is the institution covered by Aus Bank Guarantee? Is it owned by another ADI?
  2. What is the std var / total rate?
  3. How to qualify for bonus rate?  Prefer allow withdrawals and no card purchases.
  4. Any fees? Does debit card have fee?
  5. What is credit rating?

Ongoing Rates

No Institution Name Std var % Bonus % Total %pa Credit rating Conditions
1 BOQ Fast track saver 0.5 2.5 3.0 S&P BBB+, Moody’s A3, Fitch A- Bonus interest balance <= 250k. Deposit >= $1k / month. Bonus interest paid next month (end of month) where prior month conditions met. Eg month 1 (acc open), base rate applies, eligibility assessed end of month, if met, bonus rate will apply from month 2
2 Move bank Bonus saver 1.7 1.2 2.9   Only available for railway employees. Bonus interest balance up to 250k. Deposit >= $200 & no withdrawals / month
3 UBank (part of NAB) USaver Ultra 1.81 1.06 2.87 Bonus interest balance up to 200k. Deposit >= $200 / month & total balance of all accs < 200k. If balance > 200k, lose bonus interest. Bonus interest applied end of month 
4 ME Online savings 1.3 1.55 2.85   Bonus interest balance up to 250k. Weekly debit card purchase 
5 RAMS (part of Westpac) RAMS Saver 1.15 1.65 2.8   Bonus interest balance between $200 –  $500k. Deposit >= $200 & no withdrawals / month & keep balance between $200 – $500k. Bonus interest applied end of month
6 ING Savings maximiser 1 1.8 2.8 S&P A-, Moody’s Baa1, Fitch A+ Bonus interest balance up to 100k. Deposit >= $1k & 5+ card purchases / month. Bonus interest applied end of month
7 Up (neobank) Up Savers 0.75 2 2.75 Bonus interest balance up to 50k. First 4 months, then 5+ card purchases / month
8 CUA Regular saver 0.25 2.5 2.75   Bonus interest balance up to 500k. Deposit >= $250 & no withdrawals / month
9 Suncorp Growth saver 0.2 2.4 2.6 S&P A+, Moody’s A1, Fitch A+ Deposit >= $200 & no withdrawals / month
10 BankWest (part of CBA) Hero Saver 0.01 2.59 2.6   Balance up to 250k. Deposit >= $200 & no withdrawals / month
11 HSBC Flexi saver 1.25 1.25 2.5 S&P A, Moody’s A2, Fitch AA-  Bonus interest balance up to 5 million. End balance >= $300 of start balance
12 NAB Reward saver 0.5 1.9 2.4 S&P AA-, Moody’s Aa3, Fitch AA-  1 deposit & no withdrawals / month
13 ANZ Progress saver 0.01 2.39 2.4 S&P AA-, Moody’s Aa3, Fitch AA-  Deposit >= $10 & no withdrawals / month
14 Westpac Life 1 1.3 2.3 S&P AA-, Moody’s Aa3, Fitch AA-  Deposit > $0 & ensure account balance @ end > balance @ start.  Balance > 0
15 CBA GoalSaver 0.01 1.64 (< 50k) or 1.99 (50k-249k) or 2.29 (250k-299.99k) or 0.01 (>= 1 million) 1.65 or 2  or 2.3 or 0.01 S&P AA-, Moody’s  Aa3, Fitch AA- Deposit >= $200 & no withdrawals / month

Introductory offer

No Institution Name Std var % Bonus % Total %pa Conditions
1 HSBC Serious saver 1.4 1.7 3.1 First 4 months up to balance of $1 million, no withdrawals / month
2 RaboDirect High interest savings 1.8 1.25 3.05 First 4 months up to balance of $250K
3 Citibank Online saver 1.7 1.35 3.05 First 4 months up to balance of $500K
4 BankWest TeleNet saver  1 1.7 2.7 First 4 months
5 NAB iSaver 0.5 2.05 2.55 First 4 months up to balance of $20 million
6 CBA Netbank saver 0.5 2.05 2.55 First 5 months
7 Westpac eSaver 0.5 2.01 2.51 First 5 months
8 ANZ Online saver 0.5 1.8 2.3 First 3 months