Highest savings account interest rates – October 2019

William Jolly By on October 2, 2019
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highest savings account interest rates

Photo by Kevin Delvecchio on Unsplash

Want to find a high interest savings account to store your hard-earned cash? It’s pretty slim pickings at the moment, but we’ve done our best to compile some of the highest savings account interest rates on the market this month. 

To help you find a good value savings accounts, we’ve listed out some of the highest savings account interest rates available this month for adults, children and seniors. 

Note: the products in the tables below are sorted first by the advertised total interest rate (base plus bonus).

High savings account interest rates

Here are some of the top savings accounts with high interest rates for October, sorted by the total interest rate, which is the combined base and bonus interest rates. Read our article on the different types of savings interest rates if you’re not sure what these are. 

While the rates below are not introductory, they’re variable rates, not fixed rates, so are subject to change at the provider’s discretion.   

Provider Total interest rate p.a. Base interest rate p.a. Bonus interest rate p.a.  
Bonus Saver 2.50% 0.80% 1.70% More details
Save Account 2.25% 0.40% 1.85% More details
Active Saver 2.25% 0.75% 1.50% More details
Saver 2.25% 1.15% 1.10% More details
Saver 2.25% 0.40% 2.00% More details
Total interest rate p.a. Base interest rate p.a. Bonus interest rate p.a.
My State
2.50% 0.80% 1.70%
More details
Save Account
2.25% 0.40% 1.85%
More details
Active Saver
2.25% 0.75% 1.50%
More details
Saver
2.25% 1.15% 1.10%
More details
Saver
2.25% 0.50% 1.75%
More details

*Data accurate as at 17 October 2019. Rates based on a savings balance of $10,000. Introductory bonus interest rate products not included. Sorted by total interest rate, then by provider name (A-Z).

To qualify for the bonus rate, specific conditions have to be met (e.g. deposit at least $x every month, make no withdrawals etc.). Note that accounts with introductory (temporary) bonus interest rates have been excluded from our list.

What are the big four savings account interest rates? 

The rates above compare favourably with the interest rates you can get from the big four banks (that’s ANZ, CBA, NAB and Westpac’s savings accounts). Below is a table of the four highest non-introductory total interest rates available from these major banks. 

Provider Total interest rate p.a. Base interest rate p.a. Bonus interest rate p.a.  
Life 1.65% 0.45% 1.20% More details
Reward Saver 1.61% 0.11% 1.50% More details
Progress Saver 1.60% 0.10% 1.50% More details
GoalSaver 0.90% 0.01% 0.89% More details
Total interest rate p.a. Base interest rate p.a. Bonus interest rate p.a.
Life
1.65% 0.45% 1.20%
More details
Reward Saver
More details
1.61 0.11% 1.50%
Progress Saver
1.60% 0.10% 1.50%
More details
GoalSaver
0.90% 0.01% 0.89%
More details

*Data accurate as at 17 October 2019. Rates based on a savings balance of $10,000. Introductory bonus interest rates not included. Sorted by total interest rate, then by provider name (A-Z).

High kids savings account interest rates

Kids bank accounts can have higher interest rates than the average adult savings account. In fact, the lowest interest rate in the top five listed below still has a higher interest rate than the very top adult account in the section above. 

These accounts often have higher interest rates to encourage children to build good savings habits when they’re young, but they usually revert to a standard interest rate once the account holder turns 18. 

Here are some of the top kids savings account interest rates at the time of writing.

Provider Total interest rate p.a. Base interest rate p.a. Bonus interest rate p.a.  
Youth eSaver 3.75% 3.75% 0.00% More details
Scoot’s Super Saver 2.76% 2.76% 0.00% More details
Dynamo Kids Savings Account s24 2.75% 1.00% 1.75% More details
Kids Bonus Saver 2.75% 0.15% 2.60% More details
Children’s Savings Account 2.70% 0.05% 2.65% More details
Total interest
rate p.a.
Base interest
rate p.a.
Bonus interest
rate p.a.
Youth eSaver
3.75% 3.75% 0.00%
More details
Scoot’s Super Saver
2.76% 2.76% 0.00%
More details
Dynamo Kids Savings Account
2.75% 1.00% 1.75%
More details
Kids Bonus Saver
2.75% 0.15% 2.60%
More details
Children’s Savings Account
2.70% 0.05% 2.65%
More details

*Data accurate as at 2 October 2019. Rates based on a savings balance of $1,000. Introductory bonus interest rates not included. Sorted by total interest rate, then by provider name (A-Z).

High senior savings account interest rates

Senior and pensioner savings accounts typically function a bit differently to traditional savings accounts. They base their interest rates off something called ‘deeming’, which is a fixed percentage applied by the Department of Human Services to determine your assessable income. These deeming rates are then used to work out how much an individual receives from the age pension. 

The tables below show the five highest interest rates for seniors with balances above and below the deeming thresholds at the time of writing.

Provider Interest rate (p.a.)
above deeming threshold
 
Advantage Saver 2.16% More details
Pension Advantage 2.10% More details
Pension Advantage S30 2.10% More details
Advantage Plus 2.05% More details
Pension Plus 2.00% More details

*Data accurate as at 2 October 2019. Rates based on a balance of $90,000. Sorted by total interest rate, then by provider name (A-Z). Displayed interest rates may only apply to a portion of the balance.

*Data accurate as at 2 October 2019. Rates based on a balance of $25,000. Sorted by total interest rate, then by provider name (A-Z). Displayed interest rates may only apply to a portion of the balance.

Extra guides & resources:

What affects a savings account’s interest rate? 

A major factor in a savings account’s interest rate is the provider itself. Banks and credit unions partly rely on deposits (i.e. your money), to fund their daily operations, and depending on what their goals are, they might require more of it. To attract new deposits they might raise their interest rates. Alternatively, they might lower interest rates if they want to rely less on customer deposits. 

But this is just one part of the equation. The Reserve Bank cash rate is another major factor. The cash rate is currently at a historic low of 0.75% after a couple of recent drops, and savings rates have plummeted as a result.

When the cash rate is lowered, interest rates tend to follow as financial institutions pass on these cuts to consumers, and vice-versa with rate increases. 

You can see in the graph below how savings and term deposit rates follow the cash rate, and how they weren’t always as low as they are now. 

Pros and cons of savings accounts

a. Benefits of savings accounts

  • Interest is compounding, so your interest earnings can snowball over time
  • Up to $250,000 of your funds are guaranteed by the government
  • Savings accounts are at-call, meaning you can withdraw your funds at any time
  • You can use these funds however you please, be it for spending or for building up savings over time
  • They’re easy to open

b. Disadvantages of savings accounts

  • Interest rates are quite low at the moment compared to the returns offered by numerous investment options, and will likely stay this way until the RBA cash rate increases
  • Not meeting bonus interest conditions could see you miss out bigger interest earnings
  • They’re typically less flexible than a transaction account (e.g., often can’t BPAY, direct debit, or withdraw cash directly from them)
  • There are fees you can be charged, like a monthly account-keeping fee (these fees can be quite low, however)
  • They can be difficult to close, possibly requiring you to visit a brand or endure long call waiting times by phoning

Types of savings accounts

There are multiple different kinds of savings accounts to choose from:

1. Bonus and online savings accounts

These allow you to deposit funds, link a transaction account and set up automatic transfers for savings. They offer higher interest rates single transaction accounts (which often have 0% interest rates), and may allow you to earn bonus interest by meeting specific conditions.

2. Kids’ or children’s bank accounts

Also referred to as youth or junior banking accounts, kids’ savings accounts are specifically designed for children under the age of 18. These bank accounts require consent from a parent or guardian to open, but from certain ages onwards (usually 13), the children can manage the accounts themselves.

3. Savings accounts for pensioners

Savings accounts for pensioners or seniors are designed for people over the age of 55 or for those living on the aged pension. These accounts function in much the same way as regular savings accounts with a few key differences:

  • Higher interest rates for higher balances: Pensioner savings accounts often have a tiered interest rate structure, paying different interest rates depending on the balance of the account (e.g. one might pay 2% p.a. on amounts over $50,000 and 0.5% p.a. on amounts under $50,000). This is because they are often largely influenced by government-set deeming rates.
  • Most allow seniors to spend directly from it: Unlike many savings accounts, pensioner savings accounts often do not require a linked transaction account, reducing the need to manage multiple accounts.
  • Waived account-keeping fee: some charge no fees at all while others require a small monthly deposit to waive the fee.

4. Cash management accounts

Sometimes classified as ‘investment accounts’, cash management accounts can be used to receive cash from investments (like dividends and proceeds of sales) and purchase new investments. Cash management accounts can be useful for people juggling multiple investments alongside their savings, putting them all in one convenient location.

5. Business savings accounts

Not for the everyday punter, a business savings account allows you to earn interest on your business’s funds and keep it safe. They can often come with slightly lower interest rates compared to personal accounts and can require a higher minimum balance in order to earn interest.

How to compare savings accounts 

Savings accounts can be pretty simple products and the interest rate is generally what you should judge an account on. But it isn’t the only thing. You should also look into:

  • The bonus rate conditions: can you withdraw money from the account? Do you need a linked transaction account? Do you have to meet a minimum deposit every month? Failing to meet these requirements could see you miss out on bonus interest for the month. 
  • The introductory rate (if it exists): a high-interest rate can look deceptively good. Some savings account rates (not shown in the tables above) are higher but only for a limited time. Check the T’s and C’s first. 
  • What the maximum account balance is, if any: some accounts have a reduced or nullified interest rate on balances over a certain threshold.  
  • Account-keeping fees: some bank accounts don’t charge fees, but others can charge around $4 a month, if not more. It’s not much, but why pay for something when you don’t have to? 
  • Ease of use: Nowadays, many savings accounts can be managed on the go through an app. Some of these apps come with useful features for managing budgeting and spending. A savings account with such features can provide a lot of value, as long as you’re satisfied with its rates and fees. 

So don’t just pick the savings account with the highest interest rate. Make sure you do a thorough comparison for yourself, keeping in mind each of the points above and having regard to your personal requirements.

If in doubt, seek the advice of a licensed financial adviser.  

Savings.com.au’s two cents 

While you may be able earn a higher return through investments like equities, bonds and property, savings accounts can still be a core component of anyone’s portfolio. They’re almost entirely risk-free, and if you get a decent enough interest rate on an account that has no fees, you could earn money on top of your hard-earned money.


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William Jolly
William Jolly joined Savings.com.au as a Financial Journalist in 2018, after spending two years at financial research firm Canstar. In William's articles, you're likely to find complex financial topics and products broken down into everyday language. He is deeply passionate about improving the financial literacy of Australians and providing them with resources on how to save money in their everyday lives.
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