Our Pick Of The Best High-Interest Savings Accounts In Australia

High-interest savings accounts are bank accounts that offer a higher rates of interest on your cost savings than a basic cost savings or deal account. This greater interest is accrued when you fulfill particular conditions or for a short introductory period. They are designed to assist you grow your cost savings faster, in comparison to a deal account which may or may not use any interest each month.

Commonly, cost savings accounts don't have a debit card connected to the account meaning savers frequently need to transfer their cash from their high-interest account to a connected transaction account to gain access to it.

Let's look at the 2 most common types of high interest savings accounts: benefit saver accounts and online saver accounts.

Online Saver Accounts

An online saver account pays you a high interest monthly just for having your cash in the account, usually without any monthly cost or criteria. However, there's a catch: typically these accounts feature a high initial rate for a limited period of time, such as 5% for the first 3 months, before falling away to a much lower rate. That indicates that while online saver accounts can be helpful, you won't earn a greater rate of interest long-term unless you keep changing banks.

Reward Saver Accounts

A perk saver account, on the other hand, pays you a high rate of interest monthly without any expiration date, as long as you satisfy specific criteria monthly. If you do not, you'll receive the base rate of interest, which is usually quite low. This base rates of interest, plus the perk rate, is what makes up the overall month-to-month rate of interest of perk saver accounts. While there is no time limitation or introductory deal on the benefit saver account rates, you need to continue, month after month, to jump through a number of hoops in order to keep receiving that greater rate.

The criteria for benefit interest cost savings accounts differ between banks. Typically they can consist of a minimum monthly deposit, making a certain quantity of deals from a connected card, or making an optimum of one withdrawal a month. Frequently there will be at least three criteria to fulfill in order to qualify.

Source