Best High Interest Savings Accounts in Australia 2025

With the RBA cash rate at elevated levels, savings account rates have risen significantly from the near-zero rates of 2021. However, many Australians are still sitting in accounts earning 0.5–1% when rates of 4.5–5.5% are available. The difference on a $20,000 savings balance is over $800 per year.

What to Look For in a Savings Account

• Base rate vs bonus rate: Many accounts advertise a high "total" rate that includes a bonus component tied to conditions (make X deposits, grow your balance, don't withdraw, etc.). Check what the base rate is if you don't meet conditions.
• Conditions: Common conditions include minimum monthly deposits ($200–$2,000), growing your balance each month, or making a set number of card transactions on a linked account.
• Government guarantee: All deposits up to $250,000 per account holder per ADI are guaranteed under the Australian Government Financial Claims Scheme. Make sure the bank is an authorised deposit-taking institution (ADI).
• Access: Most high-interest savings accounts allow free withdrawals. Check if there are limitations.

Top Savings Accounts in Australia (2025)

Rates are indicative and change frequently — check each bank's current rates before opening an account.

• ING Savings Maximiser: Up to 5.50% p.a. with conditions — requires an Orange Everyday account, monthly deposit of $1,000+, and 5+ card purchases. One of the most popular options for working Australians whose salary goes to ING.
• Macquarie Savings Account: Up to 5.35% p.a. — relatively easy conditions, highly regarded platform and app.
• Ubank Save: Up to 5.50% p.a. — requires a linked Spend account and $200/month deposit. Simple, digital-first experience.
• BOQ Future Saver: Up to 5.80% p.a. for 14–35 year olds — one of the highest rates available, age-restricted.
• Westpac Life: Up to 5.20% p.a. — requires growing your balance each month. Good if you're consistently adding to savings.
• CommBank Goal Saver: Up to 5.00% p.a. — standard conditions, integrates well with CommBank ecosystem.

Term Deposits vs Savings Accounts

Term deposits lock your money for a fixed period (typically 1–24 months) in exchange for a guaranteed fixed rate. In 2025, 12-month term deposit rates from major banks and online lenders are sitting at 4.50–5.20% p.a.

Term deposits are worth considering if:

• You won't need access to the funds for the term period
• You want certainty — if rates fall, your rate is locked in
• You find the conditions of bonus savings accounts difficult to maintain

The downside: early withdrawal penalties can reduce or eliminate your interest. Never put money in a term deposit that you might need in an emergency.

Offset Accounts vs Savings Accounts for Homeowners

If you have a variable home loan, an offset account is almost always better than a savings account. Every dollar in your offset reduces the principal your interest is calculated on. With mortgage rates at 6–7%, the effective return on money in an offset account is 6–7% — which beats almost any savings account rate, and it's tax-free (unlike savings account interest, which is taxable income).

ETFs and Investing Your Excess Savings

For money you won't need for 5+ years, consider whether it should be in a savings account at all. A diversified index ETF (like the Vanguard Australian Shares Index ETF or iShares S&P 500 ETF) has historically returned 8–12% per year over long periods — significantly more than any savings account rate. This involves market risk, but for long-term wealth building, investing typically outperforms saving.

For Australians looking to start investing, Stake offers commission-free access to US and Australian shares and ETFs. It's one of the most cost-effective platforms for building an investment portfolio.

For crypto exposure, CoinSpot is Australia's most established crypto exchange with over 400 coins available and a straightforward, AUSTRAC-registered platform.

Action Steps

1. Check your current savings account rate. If it's below 4.5%, you're leaving money on the table.
2. Compare the options above and pick one that fits your deposit habits.
3. Open the new account and set up an automatic transfer from your transaction account each payday.
4. If you have a mortgage, ask your bank about offset accounts — they may be more valuable than a separate savings account.