How to find the best bank interest rates

Interest on savings accounts is at an all-time low, meaning your savings account may well have gone from earning you 2% p.a. to earning you 0.5% p.a. almost overnight. Feels a bit unfair, doesn’t it?

But there’s no reason for you to accept such low rates on your hard-earned money – you can open a higher interest savings account with a new bank in just a few minutes.

If you’re after a better rate, start by looking to digital banks and neobanks – though there are some more traditional banks on our list as well. Their overheads are lower than the Big Four, and they pass that on to customers in the form of higher interest and lower fees.

To help you out, we’ve compiled a list of some of the best bank interest rates at May, 2020. It’s not comprehensive; for example, we’ve left off any banks offering high introductory rates but lower ongoing rates, but it will help you switch and watch your savings grow.

To find the latest, we recommend: www.finder.com.au/bank-accounts

My State Bank is offering a generous total variable rate of 1.85% p.a. on their Bonus Saver Account, up to $250,000. The base rate is only 0.15%, but the conditions for earning the total rate are fairly undemanding; make a minimum monthly deposit of just $20 and five transactions on your debit card for the linked account (either a Glide Account or an Everyday Account).

Neobank 86 400 is also offering 1.85% p.a. total variable rate on their Save Account on amounts up to $100,000. The base interest rate is a little higher at 0.25%, which is good as you have to deposit $1000 a month into any of your accounts with them to get the total rate, and you may not find that possible every month.

BOQ’s Fast Track Saver Account is offering 1.85% p.a. up to $250,000, with a base rate of 0.20% You have to deposit a minimum of $1000 each month, and make five or more transactions a month from your linked Day2Day Plus Account – however the transaction requirement has been put on pause until August 31.

Up is giving you 1.85% p.a. as well, up to $50,000 across all your Savers Accounts. The base rate is just 0.10% and you do have to make five transactions a month from your Up Everyday Account.

ING Direct is offering 1.80% p.a. on their Savings Maximiser on amounts up to $100,000. However, the base rate is just 0.10% and the conditions for getting the maximum rate are a little more onerous. You have to deposit $1000 into any of your ING accounts and make five transactions from your Orange Everyday Account. That said, for existing customers who met those conditions in the first three months of the year, they’re waiving the requirements for the next few months.

Suncorp is also offering 1.80% p.a., with a base rate of 0.20%. You have to add at least $200 to your account each month to get the full rate and you can’t make more than one withdrawal a month – so it’s no good if you often need to dip into your savings.

ME Bank is offering a slightly lower 1.80% p.a. (base rate of 0.10%) on their Online Savings Account, but it’s on amounts up to $250,000 in up to three Savings Accounts. You must also have an Everyday Transaction Account and make at least four tap & go purchases a month.

Volt’s rate is lower again, at 1.65% on amounts up to $245,000, but that’s the base rate – no tricks or conditions, so it’s a great option if you’re a set-and-forget saver.