Over the past few years, savings rates have stagnated, and reached a nadir as the RBA held the cash rate at historic lows below 1.00% for nearly three years.
To put this into perspective, from October 2021 to April 2022, bonus savings savings accounts were offering record-low rates of 0.25% p.a. forcing savers to look for alternative means to earn sufficient returns on their spare cash.
Since the RBA has responded to rising inflation and cost of living pressures, consecutive cash rate increases since May have placed a spotlight back on savings accounts, with some banks now offering rates not seen since 2013.
Based on Savings.com.au’s market research, there are more than 10 banks offering savings accounts with a rate of 4% or higher.
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All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of March 18, 2024. View disclaimer.
Base, bonus, and intro rates explained
Total interest rates of 4.00% p.a. or greater are usually delivered as a combination of a base rate, plus an intro rate or bonus rate once certain conditions are met.
A base interest rate is the default interest rate on your savings account that you earn without having to meet specified conditions. This rate typically ranges from 0.05% to 0.55% however will vary across banks.
A bonus interest rate is an additional interest rate savers can benefit from on top of the base rate. Typically these are offered as a ‘conditional’ rate, requiring certain steps to be completed each month. This means you may be required to meet conditions such as the amount deposited, number of withdrawals or number of transactions made.
An introductory rate, also known as honeymoon or welcome rate, is an interest rate that applies for a limited number of months after the account is opened - usually three or four months. After the time has lapsed, the account will revert to a base rate.
Unlike term deposits, base, bonus and introductory interest rates offered by banks on savings accounts are variable, meaning they can change at a moment's notice - however are most likely to change in line with the RBA cash rate.
It’s important to remember that any interest earned - whether it be through a base rate, bonus rate or intro rate - is required to be taxed, meaning you will have to declare interest when completing your tax return. This interest is taxed at your marginal income tax rate.
How to get savings account rates over 4.00% p.a.
Below are some popular banks with savings account rates over the 4% p.a. mark and the deposit conditions on how to get there.
Bank of Queensland
Available for those aged 14-35; Max balance $50,000; Deposit minimum $1,000 per month and make five completed card transactions per month.
ING
Max balance $100,000; Deposit minimum $1,000 per month and make five completed card transactions per month.
Rabobank
Four month introductory rate, reverting back to 3.00% p.a. after this period; Max balance $250,000.
Macquarie Bank
Four month introductory rate, reverting back to 3.45% p.a. after this period; Max balance $250,000.
Virgin Money
Max balance $250,000; Deposit minimum $2,000 per month and make five settled card transactions per month.
St George, Bank of Melbourne & BankSA
Grow account by $50 per month; Ensure balance does not fall below $0.
Westpac
Available for those aged 18-29; Max balance $30,000; Make five settled card transactions per month; Keep balance higher at the end of each month than the beginning.
Move Bank
Max balance $25,000; Deposit $200 per month and make no withdrawals.
ubank
Deposit $200 per month (excluding internal transfers) into Spend or Save accounts.
Which bank gives 7% interest on a savings account? There are not any banks offering 7% interest on a savings account right now. However, two financial institutions are paying at least 7% APY on checking accounts: Landmark Credit Union Premium Checking Account, and OnPath Rewards High-Yield Checking.
Investors largely expect savings rates to hold steady in early 2024 and then decline as we head into summer. Savings account rates typically rise and fall with the federal-funds rate, the benchmark interest rate set by the Federal Reserve.
Currently, there's only one account that pays 6% APY — Digital Federal Credit Union's savings account — and it only pays 6.17% APY on balances up to $1,000.
AU Small Finance Bank, Equitas Small Finance Bank and Suryoday Small Finance Bank are offering interest up to 7 percent on savings accounts. The average monthly balance requirement is Rs 2,000 to Rs 5,000, Rs 2,500 to Rs 10,000 and Rs 2,000 respectively.
This account offers 5.10% APY on any balance. We also like that this account allows unlimited transfers and withdrawals, making it ideal for those planning to move money frequently.
Key takeaways. The national average rate for one-year CD rates will be at 1.15 percent APY by the end of 2024, McBride forecasts, while predicting top-yielding one-year CDs to pay a significantly higher rate of 4.25 percent APY at that time.
You can find certificates of deposit (CDs) with rates as high as 6%. However, these rates are currently only available through credit unions and not traditional banks. Typically, these high 6% CD rates come with maturities of 12 months or less. Pros of a 6% CD include locked-in interest rates and high returns.
On 30 May 2024, the average 2 year fixed mortgage rate is 5.80%. While this is a significant drop from its July 2023 peak of 6.86%, it's still much higher than December 2021 when was 2.34%.
The best high-yield savings accounts pay up to 5.50% APY and allow you to withdraw anytime you want. Money market accounts give you the ability to write checks and pay a top rate of 5.35% APY. CDs let you lock in a rate that's guaranteed until the CD matures, with options to earn 5% or better for as long as 3 years.
Which bank gives 8% interest on a savings account? Currently, no banks offer an interest rate of 8% on savings accounts. However, some banks provide a 7% APY on checking accounts.
At this time, no banks have a savings account with a 7% interest rate. If you can find a savings account with a 7% APY, you'll earn about 15X more than the national savings rate. It's much more common to find a high-yield savings account with rates between 4% and 5% right now.
As of July 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.
DCB Bank: This bank provides interest rates of up to eight per cent on savings accounts, making it the top choice among private banks in terms of interest rates. The minimum balance requirement ranges from ₹2,500 to ₹5,000.
Introduction: My name is Neely Ledner, I am a bright, determined, beautiful, adventurous, adventurous, spotless, calm person who loves writing and wants to share my knowledge and understanding with you.
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