Savings .com.au
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BankSavings AccountBase Interest Rate Max Interest Rate Total Interest Earned Introductory Term Minimum Amount Maximum Amount Minimum Monthly Deposit Minimum Opening Deposit ATM Access Joint Application TagsFeaturesLinkCompare
4.40% p.a.
5.75% p.a.
Intro rate for 4 months
then 4.40% p.a.
$533
4 months
$0
$250,000
$0
$0
  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance
4.75% p.a.
5.35% p.a.
Intro rate for 4 months
then 4.75% p.a.
$518
4 months
$0
$249,999
$0
$0
Featured
  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
  • No withdrawal notice periods or interest rate penalties
0.10% p.a.
Bonus rate of 5.00%
Conditions apply.
5.10% p.a.
$515
$0
$250,000
$200
$0
Featured No monthly fees
  • Download the App to open your account
  • Get better visibility of your spending within App!
  • Deposit $200 per month to activate bonus interest
0.55% p.a.
Bonus rate of 5.00%
Conditions apply.
5.55% p.a.
$561
$0
$100,000
$2,000
$0
0.10% p.a.
Bonus rate of 5.40%
Conditions apply.
5.50% p.a.
$556
$1
$25,000
$200
$1
0.05% p.a.
Bonus rate of 5.45%
Conditions apply.
5.50% p.a.
$556
$0
$50,000
$1,000
$0
For customers aged 14-35 years
0.50% p.a.
Bonus rate of 4.85%
Conditions apply.
5.35% p.a.
$541
$1
$50,000
$500
$1
  • Maximum Age - 24
0.05% p.a.
Bonus rate of 5.30%
Conditions apply.
5.35% p.a.
$541
$0
$250,000
$1,000
$0
0.30% p.a.
Bonus rate of 4.95%
Conditions apply.
5.25% p.a.
$531
$0
$100,000
$$formattedMinMonthlyDep.format("%,d",$!{product.minimumMonthlyDeposit})
$1
0.01% p.a.
Bonus rate of 5.24%
Conditions apply.
5.25% p.a.
$531
$0
$99,999
$100
$0
Bonus rate of 5.25%
Conditions apply.
5.25% p.a.
$531
$0
$1,000,000
$20
$1
2.00% p.a.
Bonus rate of 3.20%
Conditions apply.
5.20% p.a.
$526
$0
$30,000
$$formattedMinMonthlyDep.format("%,d",$!{product.minimumMonthlyDeposit})
$0
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What is an introductory savings account?

An introductory savings account is a type of savings account offered by banks and other financial institutions, typically for a limited time, that provides a higher interest rate than a traditional savings account. This limited time rate is generally between three to six months, in order to to entice new customers to open an account.

At the conclusion of the promotional period offering the higher interest rate, generally the rate will revert back to the to the base rate offered on the account. In most cases, this base rate is a much lower rate, compared to what you may have been receiving previously.

How do introductory savings accounts work?

Introductory savings accounts work similarly to traditional savings accounts, with the exception of a few key differences. As mentioned above, when an introductory savings account is opened, the account will typically offer a higher interest rate often over a number of months as an incentive to attract new customers. After the promotional period ends, the interest rate may revert to the base rate offered by the bank or financial institution.

It's important to note that introductory savings accounts may have specific terms and conditions, such as minimum deposit requirements, minimum balance requirements, or limited withdrawal restrictions to achieve a greater rate on your savings. It's important to review these terms carefully and understand how the account works before opening an introductory savings account.

How are introductory savings accounts different to bonus savings accounts?

Where introductory savings accounts offer a higher interest rate for a limited time as a way to attract new customers, bonus savings accounts offer a higher interest rate as a reward for meeting certain conditions, such as making a certain number of deposits or maintaining a minimum balance.

Unlike introductory savings accounts where the boosted interest rate may only last for a limited number of months, bonus savings accounts off the ability to receive a higher interest rate across the life of the account - if conditions are met.

Some of the conditions that you may be required to satisfy to earn a greater rate of interest on a bonus savings account include:

  • Depositing a particular amount into your savings account each month.
  • Making zero or limited withdrawals each month.
  • Having a linked transaction account with a particular amount deposited each month.
  • Making a certain number of transactions each month using the linked transaction account.
  • Having a greater savings account balance at the end of the month.

For example, some of the most popular bonus savings accounts on the market today offered by ING, Bank of Queensland and Virgin Money require customers to meet a number of conditions before receiving the bonus interest.

If you have a bonus savings account and don’t meet the specified bonus conditions one month, then only the base rate will apply that month.

Advantages and disadvantages of introductory savings accounts

Advantages

  • Higher interest rate: The main advantage of an introductory savings account is that it typically offers a higher interest rate than a traditional savings account, helping you to potentially grow your savings faster.
  • Attractive to new customers: Introductory savings accounts are often used by banks to attract new customers and provide them with an incentive to start saving.
  • Easy to open: Introductory savings accounts are usually easy to open and may have lower minimum deposit requirements than traditional savings accounts.
  • Flexibility: Introductory savings accounts may offer flexible withdrawal options and allow customers to access their funds when needed.

Disadvantages

  • Limited time interest rate: The higher interest rate offered by an introductory savings account is typically only available for a limited time, after which the rate may revert to the standard rate which is considerably lower.
  • Restrictions on withdrawals: Some introductory savings accounts may have restrictions on the number of withdrawals allowed each month, or may charge fees for withdrawals.
  • Minimum balance requirements: Some introductory savings accounts may require customers to maintain a minimum balance in order to receive the higher interest rate.

How to get the most out of introductory savings accounts

A common method utilised by people today to ensure they continually achieve a boosted interest rate on their savings is by ‘churning’ introductory savings accounts. This practice is more commonly seen by people with credit cards, however it essentially means once an introductory offer expires, you switch savings account providers offering another introductory rate.

The bonuses on offer with savings accounts might not be as significant as they are with credit cards, but if you’re willing to put the effort in, then you might consider 'churning' accounts by:

  • Finding a savings account with a higher interest rate.
  • Putting as much of your savings in there as you’re comfortable with.
  • Taking advantage of the higher interest rate.
  • Closing the account when the intro term is over and switching to a new one.

This should be relatively easy to do, as signing up for a savings account can only take a few minutes online. You also don’t always have to go through the whole ‘direct debit’ rigamarole that usually comes with switching banks, as you’re only putting your savings in there.

Once the introductory term has expired, take that money out and transfer it to a new account, and you could be making more interest on your savings than most other people.

Savings.com.au’s two cents

If you’re deciding whether or not to open an introductory savings account to obtain a higher interest rate, first ask yourself is it really worth changing banks every three to four months just to earn a more few percentage points in interest?

Although it won’t require too much work on your part, the difference is likely to be significant given the growth in savings account interest rates throughout 2022. In a low interest rate environment, the difference in savings you could make in just a few months through interest may not be worth it. However, in a high interest rate environment, the differences could be the key to achieving your savings goals faster.