Australia's cash rate has jumped up a lot since it first began rising almost two years ago, meaning the interest rates on deposit accounts at banks across the country have also been on an upwards trajectory.

They may still not be as sexy as some modern investments, but high-interest savings accounts, whose yearly rates were previously languishing at below 1%, are now finally starting to live up to their name, with rates hovering around 5.50%.

With the money market showing some life, now could be a good time to revisit this long-time savings favourite and see which banks are offering the best rates. Luckily, we've filtered through the terms and conditions for you to find the best high-interest savings accounts worth considering.

On this page:

• What is a high-interest savings account?
• Best high-interest savings accounts by base rate
• Best high-interest savings accounts by bonus rate
• Best of the big four: ANZ, CBA, NAB and Westpac
• How much does a high-interest savings account pay?
• High-interest account traps to be aware of
• The problem with the current high interest rates

What is a high-interest savings account?

High-interest savings accounts are bank accounts that pay you a higher rate of interest on the money you put in them. This interest is represented as an annual rate, but you'll receive it into your account monthly.

Because they offer higher rates than most other bank accounts, many of these products come with conditions, such as depositing a certain amount each month.

Like regular savings accounts, they're also usually online and not connected with a credit or debit card, so it's not as easy to dip into your savings.

In order to get one of these accounts, you'll also often have to open an everyday spending or transaction account at the same bank, some of which may come with their own fees or conditions. Our list tells you which products require you to take this extra step.

Thankfully, most high-interest savings accounts don't come with ongoing account-keeping, service or admin fees. In any case, we outline the fee situation for each of the best performing accounts (and their associated transaction accounts) in our list below.

You get more money for your deposit in a high-interest savings account than in a regular savings or transaction account.

How to know where to put your savings

Before you go switching accounts to cash in on the rising rates, pause to consider the best way to make your savings count:

• When choosing which high-interest option to go for, don't fall for teasers (i.e. accounts that offer generous interest, but only for the first few months) or options with deposit or transaction conditions that you might find hard to meet.
• If you have debts owing to buy now, pay later (BNPL) services or credit cards, your first priority should be to pay them off before putting money aside for saving.
• If you've got a mortgage, a 100% offset account might be a better destination for your cash – keeping your money here can help you reduce the amount of interest you'll pay over the life of your loan.

Best high-interest savings accounts by base rate

These accounts offer the best ongoing annual interest rates without requiring you to make any regular deposits or transactions, or making you wait a certain amount of time before you can access your money.

(Last updated 8 March 2024)

Freedom Saver (Australian Unity) – 5.20%. On balances up to $50,000. 

• You'll also have to open a linked transaction account with the same provider.
• No ongoing account-keeping fees on this account or the linked transaction account.

ANZ Save (ANZ Plus) – 4.90%. On balances up to $250,000.

• You'll also have to open a linked transaction account with the same provider.
• No ongoing account-keeping fees on this account or the linked transaction account.
• Exclusive to the ANZ Plus app and not accessible via ANZ's standard online banking.

Simple Saver Account (Bank of Queensland) – 4.85%. On balances up to $5 million.

• Exclusive to the myBOQ app and not accessible via BOQ's standard online banking.
• No ongoing account-keeping fees on this account or on everyday transaction accounts at the same provider.

MoneyMAX Account (Unity Bank) – 4.75%.

• You'll also have to open a linked transaction account with the same provider.
• No ongoing account-keeping fees on this account or the linked transaction account.
• You'll have to pay $10 to become a member of Unity Bank.

Online Saver Account (Orange Credit Union) – 4.75%. On balances over $1000.

• You'll also have to open a linked transaction account with the same provider.
• No ongoing account-keeping fees on this account or the linked transaction account.

Savings Account (Macquarie) – 4.75%. On balances up to $1 million. An introductory rate of 5.35% is available for the first four months on balances up to $250,000.

• You'll also have to open a linked transaction account with the same provider.
• No ongoing account-keeping fees on this account or the linked transaction account.

Best high-interest savings accounts by bonus rate

Able to make a few concessions with your money without breaking your budget? Some of these accounts top the savings rate market, but require depositors to make certain sized deposits and numbers of transactions in return.

It's important to know that if you can't meet these conditions, the bank will only offer you a base rate of interest, which can be as low as 0.05%.

(Last updated 8 March 2024)

HomeME Savings Account (ME) – 5.55%. On balances up to $100,000.

• Conditions: have a growing account balance and deposit at least $2000 into a linked SpendME account every month.
• You'll also have to open a linked SpendME transaction account with the same provider.
• No ongoing account-keeping fees on this account or the linked transaction account.
• Exclusive to ME's GO app and not accessible via ME's standard online banking.

Growth Saver (MOVE Bank) – 5.50%. On balances up to $25,000. 

• Conditions: deposit at least $200 and make no withdrawals every month.
• No ongoing account keeping fees.

Savings Maximiser (ING) – 5.50%. On balances up to $100,000. Can only apply to one account.

• Conditions: deposit at least $1000 into any personal ING account in your name and make at least five settled purchases with an ING debit or credit card every month. The savings account must also have a higher closing balance than the previous month (excluding interest).
• You'll also have to open a linked transaction account with the same provider.
• No ongoing account keeping fees on this account or the linked transaction account.

Future Saver Account (Bank of Queensland) – 5.40%. On balances up to $50,000.

Best of the big four: ANZ, CBA, NAB and Westpac

They've historically lagged behind the new, online-only banks on deposit rates, but Australia's major lenders are now offering more competitive savings options on their bonus rate products. Here's what you could be getting if you're a customer at one of the big four:

(Last updated 8 March 2024)

ANZ

• ANZ Plus Save – 4.90%. See details above.
• Progress Saver – 4.25%. Conditions: deposit at least $10 in one transaction each month and make no withdrawals or transfers, otherwise it reverts to 0.01%. No ongoing account-keeping fees.
• Online Saver – 1.50%. (3.65% for the first three months.) No ongoing account-keeping fees.

CBA

• GoalSaver – 4.90%. Conditions: make at least one deposit and have a growing account balance each month, excluding interest and bank-initiated transactions, otherwise it reverts to 0.40%. No ongoing account-keeping fees.
• NetBank Saver – 2.35%. 5.10% for the first five months on your first NetBank Saver account. No ongoing account-keeping fees.

NAB

• Reward Saver – 5.00%. Conditions: make at least one deposit and no withdrawals each month, otherwise it reverts to 0.35%. No ongoing account-keeping fees.
• iSaver – 2.00%. 5.00% for the first four months on balances up to $20 million if you haven't held an iSaver account in the last 12 months. No ongoing account-keeping fees.

Westpac

• Life – 5.00%. Conditions: Make at least one deposit and have a growing account balance each month, otherwise it reverts to 2.00%. 18–29 year olds with this account can earn 5.20% on balances up to $30,000 if they meet the previous criteria and make five eligible and settled purchases with a debit card linked to their Westpac Choice account. No ongoing account-keeping fees.
• eSaver – 1.10%. 5.00% for the first five months if opened online by sole applicants who have never held an eSaver account before. No ongoing account-keeping fees.

How much does a high-interest savings account pay?

If you had $1000 in an account and deposited $100 into it each week for a year, you would earn…

$36 in an account earning 1.00% interest

$163 in an account earning 4.50% interest.

$181 in an account earning 5.00% interest

$199 in an account earning 5.50% interest

$207 in an account earning 5.70% interest

Source: mozo.com.au

High-interest account traps to be aware of

As we've highlighted, some high-interest savings accounts come with a web of conditions and caveats. 

You should make sure you will be able to meet these requirements if you want to take advantage of the bonus rates these accounts offer. If you can't, in many cases your rate will be slashed and end up being much lower than what you would be getting in a condition-free account.

Rate tease

'Teaser' accounts make a big show of offering high rates with no conditions – only to reveal in the fine print that holders will enjoy this rate for just the first few months.

There are quite a few of these out there, so always look at the details of the deal before you park your cash and be prepared to move your savings elsewhere if you don't want to be hit with a lower base rate.

Minimum monthly deposits

Many accounts that offer a top-shelf rate will make you work for it, requiring you to make set monthly deposits into it.

For some banks, the bar for these contributions is as high as $2000, so make sure you can afford to make these sorts of concessions before chasing these higher rates.

No withdrawals and positive balances

These minimum-deposit conditions often come paired with a "growing balance" clause, which slashes your rate to next to nothing if you make a transfer and leave the account holding less money than the previous month. Others only provide bonus rates if you make no withdrawals at all.

Be prepared to leave your money untouched for a while if you want to reap some serious interest

If your account comes with these conditions, be prepared to leave your money untouched for a while if you want to reap some serious interest. 

Linked accounts and mandatory purchases

Quite a few of the best savings options currently on the market require you to have a transaction account with the bank you're saving with.

In the age where you can set up a bank account online, this is a relatively simple task, but be aware that a linked transaction account may come with ongoing fees. You might also have to make a minimum number of purchases using the card linked to that account every month if you want to keep your rate up.

Age limits and occupation eligibility

We've decided to overlook a few accounts that would have made it onto our list because their competitive rates are only available to children or teenagers. Always check you're putting your money somewhere that's age-appropriate.

We've also left off our list any accounts offered by banks who only offer their products to current and former workers in particular sectors, (such as education or the emergency services) or relatives of people who meet this criteria.

The problem with the current high interest rates

While interest rates have gone up over the last eighteen months, we're concerned they're not flowing through to savers (who benefit) as much as they are to mortgage holders and borrowers (who don't).

The ACCC has just conducted an inquiry into the interest rates on deposit products such as savings accounts and how they compare to those on loans, after noting that the changes to saving rates had been "smaller or conditional".

While interest rates have gone up over the last eighteen months, we're concerned they're not flowing through to savers (who benefit) as much as they are to mortgage holders and borrowers (who don't)

CHOICE has been weighing in on this issue, calling for banks to be required to ensure they're offering fair value on deposits, move customers to their best savings rate and make it easier to close accounts.

In its final report handed to the federal government at the end of last year, the ACCC recommended banks be required to tell customers when they change their interest rates, and prompt them to consider switching to a better rate.

Stock images: Getty, unless otherwise stated.

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