Highest savings account interest rates – April 2019

William Jolly By on April 1, 2019
highest savings account interest rates

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. 

Interest rates might be pretty low at the moment, but that doesn’t mean savings accounts aren’t a useful product for some.

They may be useful for budgeting, storing readily accessible cash and generally building good savings habits. And if you shop around, you can get some decent enough interest rates. 

To help you find a good value savings account, 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 account interest rates for April, 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. 

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. For example, HSBC’s Serious Saver Account offers, at the time of writing, a total interest rate of 3.10% p.a. which reverts to 1.20% p.a. after four months.

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

ProviderProduct name Total interest rate p.a. (base + bonus) Base interest rate (p.a.)Bonus interest rate (p.a.)
CUA eSaver Extra 2.90%0.50%2.40%
UBank USaver with Ultra 2.87%1.81%1.06%
Bank First Bonus Saver Account S982.85%0.05%2.80%
MEOnline Savings Account2.85%1.30%1.55%
Australian UnityActive Saver2.80%1.20%1.60%
INGSavings Maximiser2.80%1.00%1.80%
RAMSSaver Account2.80%1.15%1.65%

Data accurate as at April 1 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). 

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. 

ProviderProduct name Total interest rate p.a. (base + bonus) Base interest rate (p.a.)Bonus interest rate (p.a.)
ANZProgress Saver 2.40%0.01%2.39%
NABReward Saver2.30%0.50%1.80%
Commonwealth BankGoalSaver 1.65%0.01%1.64%

Data accurate as at April 1 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.

ProviderProduct name Total interest rate p.a. (base + bonus) Base interest rate (p.a.)Bonus interest rate (p.a.)
BankwestKid’s Bonus Saver4.75%0.01%4.74%
Nexus Mutual Junior Saver4.35%3.00%1.35%
CUAYouth eSaver4.00%4.00% – 
BCUScoot’s Super Saver3.50%0.75%2.75%
Credit Union SAChildren’s Savings Account3.25%0.25%3.00%

Data accurate as at April 1 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.

ProviderProduct name Interest rate (p.a.) – above deeming threshold 
Teachers Mutual BankPension Advantage3.25%
UniBankPension Advantage S303.25%
CUAEveryday 50+2.90%
G&C Mutual BankPension Plus Account2.75%
BCUAdvantage Saver2.61%

Data accurate as at April 1 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. 

ProviderProduct name Interest rate (p.a.) – below deeming threshold 
P&N Bank& Retirement Account2.00%
Australian Military BankPension Access Account1.75%
Teachers Mutual BankPension Advantage1.75%
UniBank Pension Advantage S301.75%
BankVicPension Plus1.65%

Data accurate as at April 1 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.

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 1.50%, and has been now for 29 months (and counting). 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. 

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.

Photo by Kevin Delvecchio on Unsplash

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