Best savings accounts in January 2024

Methodology: How we choose our top picks

Every month we look at the 140+ savings accounts in our database to determine which are the best offers for a range of different purposes and account types. Specifically, here's how we determine each of our top pick recommendations:

• Best savings account overall

  This account is chosen as part of our annual Finder Awards. First, we filtered for the accounts in our database that have an ongoing bonus interest rate with no maximum age restriction, and that offered bonus interest on balances up to $100,000 or higher. We then looked at 12 months' worth of rate data, with more weight applied to the most recent quarter, to determine the account with the highest bonus rate for the most amount of time. Any monthly conditions to earn the ongoing bonus rates were presumed to be met.

  What we like about ING Savings Maximiser:

  • Finder Awards winner. ING Savings Maximiser won the Best Savings Account in this year's Finder Awards. It has consistently had one of the highest rates in the market over the past 12 months, combined with reasonable account conditions to earn the bonus rate.
  • Great rate. ING offers one of the highest maximum ongoing variable rates in the market at the moment with 5.5% p.a.
  • Ongoing rate. ING's maximum variable rate is ongoing each month you meet the account conditions.
  • Reasonable deposit conditions.You need to deposit $1000 per month to earn the bonus rate, which is in line with (or even lower than!) other accounts with similar bonus rates.
  • Interest on balances up to $100,000. You can earn the maximum variable rate on balances up to $100,000, which is higher than others in the market with similar rates.
  • Linked bank account. The linked ING Orange Everyday Account has no monthly account fees, 5 free Australian ATM transactions a month and no international transaction fees.

• Best savings account for under 35s

  This account is chosen as part of our annual Finder Awards. First, we filtered for the accounts in our database that have an ongoing bonus interest rate and only available to customers aged 18-30. We then looked at 12 months' worth of rate data, with more weight applied to the most recent quarter, to determine the account with the highest bonus rate for the most amount of time. Any monthly conditions to earn the ongoing bonus rates were presumed to be met.

  What we like about Bank of Queensland Future Saver:

  • Great rate for under 35s. This account offers one of the highest maximum variable rates in the market at the moment with 5.4% p.a. for customers aged 14-35. p.a.
  • Ongoing rate. Bank of Queensland's maximum variable rate is ongoing each month you meet the account conditions.
  • Make withdrawals. As long as you've deposited $1000 per month, you can make withdrawals while still being eligible for bonus interest.
  • Finder Awards winner. This account won the Best Young Adult Savings Account in this year's Finder Awards.

• Best savings account for maximum interest

  Each month we look at the 140+ accounts in our database and filter for the account with the highest variable bonus rate available. We look at accounts with an ongoing bonus rate as well as accounts an introductory bonus rate. Note that we do not consider the monthly criteria in order to earn the bonus rate - this is purley selected by the highest rate.

  What we like about ME’s HomeME Savings Account:

  • Bonus rate is best in market. This account currently offers the highest maximum variable rate in the market with 5.55% p.a. when the account conditions are met.
  • Ongoing rate. The maximum variable rate is ongoing each month you meet the account conditions.
  • Tiered bonus rate.The maximum bonus rate is available on balances up to $100,000, however balances above this will still earn bonus interest at a slightly lower rate.

• Best savings intro rate

  Each month we look at the 140+ accounts in our database and filter for the accounts that offer an introductory bonus rate, not an ongoing bonus rate. Then, we select the account with the highest introductory bonus rate available. If two accounts have an equal bonus rate we select the one with the higher variable base rate or larger balance tier.

  What we like about Rabobank High Interest Savings Account:

  • Great intro rate. This account offers a high rate of 5.75% p.a. for the first 4 months after opening the account - that's one of the highest rates in the market!
  • No conditions for bonus interest. You don't need to meet any monthly deposit conditions or spend requirements to earn the bonus intro rate.
  • No ongoing conditions. After the 4-month intro period ends, you'll still earn an ongoing variable rate of 4.4% p.a. with no conditions to meet.
  • Interest on large balances. You'll earn the bonus interest rate (then later the base interest rate) on your full balance up to $250,000.

• Best youth savings account

  This account is chosen as part of our annual Finder Awards. First, we filtered for the accounts in our database that have an ongoing bonus interest rate and only available to customers aged 17 or under. We then looked at 12 months' worth of rate data, with more weight applied to the most recent quarter, to determine the account with the highest bonus rate for the most amount of time. Any monthly conditions to earn the ongoing bonus rates were presumed to be met.

  What we like about Great Southern Bank Youth eSaver Account:

  • Great rate for under 17s. This account currently offers 5.5% p.a. for customers aged under 17.
  • Ongoing rate. This maximum variable rate of 5.5% p.a. is available ongoing each month.
  • No conditions. There are no monthly deposit conditions to meet to earn interest, so it's an easy account for kids to use.
  • Finder Awards Winner. This account won the Best Kid Savings Account in this year's Finder Awards.

• Best savings account for cashback

  Each month we look at the savings accounts in our database that have a cashback offer, and filter for those available through Finder. We select the account with the highest-value cashback offer. If two accounts have a cashback offer of equal value, we'll look at the one with the highest bonus rate available.

  What we like about Ubank High Interest Save Account:

  • Exclusive cashback offer. Customers can earn $40 cash back when applying through Finder.
  • Good bonus rate. This account offers a good maximum bonus rate of 5.1% p.a.
  • Ongoing rate. The bonus rate is available ongoing each month you meet the account conditions.
  • Easy conditions to meet. To earn bonus interest you only need to deposit $200 per month, which is much lower than most high interest savings accounts.

What to look for when you compare savings accounts

High interest rate

The higher the interest rate, the more interest you'll earn and the more your balance will grow. This is the most important feature to consider when choosing your account.

No fees

Savings accounts shouldn't charge you any fees. If you're getting charged a fee, know that this is not common and there are plenty of fee-free accounts.

Conditions you can meet

Savings accounts typically have monthly deposit requirements or spend conditions in order to earn the high bonus rate. Make sure you can meet these.

How to find the best savings account

The best savings account for you will depend on your age, financial situation, savings goals and spending habits. Here are a few different hypothetical examples of how you might pick a savings account based on your personal savings style.

You earn a regular income and are able to meet a monthly deposit condition

The best savings account for you will likely be one with the following:

• An ongoing bonus interest rate: Because you earn a regular income and are confident in your ability to save, a savings account with an ongoing, high bonus rate would offer the best rate for you.
• A monthly deposit condition: Usually the accounts with the best bonus rates have a monthly deposit condition, often $1000 per month, which is ideal for people with good savings habits and a regular income.

You have a short-term savings goal

Let's say you want to give your savings a boost for 3-5 months only to help you save for an overseas holiday or another large purchase. Because you're saving for a specific goal in the near future, you aren't planning to keep your cash in the account for too long and you don’t want to have to meet any ongoing monthly conditions.

The best savings account for you will likely be one with the following:

• An introductory bonus interest rate: Accounts with an introductory bonus rate offer a higher rate for the first 3-5 months only, with no conditions to meet.
• A term deposit: A term deposit allows you to lock your money away for a set period of time and earn a fixed return, with no monthly conditions to meet.

Can't commit to a monthly deposit condition

Let's say you don't earn a regular income, or you're currently not in a position to meet a monthly deposit condition. Plus, perhaps you're also prone to dipping into your savings from time to time for impulse purchases or unexpected expenses.

The best savings account for you will likely be one with the following:

• An ongoing bonus interest rate: An account with an ongoing bonus interest rate will give your balance the best chance at growing (just make sure you check the conditions!)
• No (or low) monthly deposit condition: Look for a bonus saver account that doesn't have a monthly deposit condition. Or, look for one that you can comfortably meet (some accounts only ask you to deposit $20 per month).

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Why keep your cash in a savings account?

• Savings accounts are safe - your deposit up to $250k is protected by the Australian government
• Savings accounts offer compound interest, so you can earn interest on your interest
• The money in your savings account is quick and easy to access if you ever need it
• Interest rates on savings accounts are going up!

The role of a savings account

Although shares historically offer better long-term returns, people often ask why keep cash in a savings account. The answer is simple: a savings account offers certainty, security, and acts as a financial safety net. Unlike volatile shares, you won't lose money, and you can quickly access your cash when needed.

Alison Banney
Finder's banking editor

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How does a savings account work?

Usually savings accounts are connected to transaction accounts and instead of the money sitting in your bank account, you can transfer it to your savings account and it'll earn interest (if you meet the account conditions, of course). The special thing about savings account interest is it's compound interest, meaning you'll earn interest on your interest.

Is it best to stick with the Big Four or go with a smaller bank?

Wondering which bank is best to open up your savings account with? Chances are you may be thinking of joining the Big Four. We've put together this pros and cons list of the Big Four VS smaller banks to help you make a decision easier.

	Pros	Cons
Big Four	May offer better customer service as they operate 24/7 Easy access to ATM's (and no-fee withdrawals) due to large distribution Can easily manage other loans through the same network Better funding to these banks mean more advanced banking technology Comprehensive range of products offered Able to operate in person and online	Depersonalised customer experience due to large customer base – can get "lost in the noise" Interest rates may not be as competitive
Smaller Banks	May offer more competitive interest rates May offer more personalised customer service Some banks may offer advanced banking technologies like app banking You may be able to negotiate waiving fees on a case-by-case basis	Not likely to have in-person support – may be online only Limited access to ATM's due to low distribution

How do I open an Australian savings account?

In most cases you can apply and open the savings account online, as long as you're able to provide documentation that confirms your identity and residency. If you're a new customer to the bank, you'll need to verify your identity for legal reasons. For the online savings and bonus saver accounts, some banks will allow an Australian as young as 12 years old to have an account opened in their name.

Find the right savings account

FAQs on best savings accounts

• Will saving rates continue to go up in late 2023?

  The Reserve Bank of Australia raised interest rates quite rapidly in 2022 and early 2023. We have seen this slow down as inflation has started to fall. But many experts predict at least another rate rise or two, either at the end of 2023 or sometime in 2024.

• Are introductory rates worth it?

  Introductory savings rates are often among the highest in the market, but they're only available for a short period of time. If you have a short term savings goal, or you're willing to move your money around every 4-6 months, then a high introductory savings rate could be worth considering.

• Is ING Savings Maximiser the best savings account?

  ING's savings account has been very popular ever since finance expert Scott Pape recommended it in his book The Barefoot Investor. At the time when the book was first written in 2016, ING's savings rate was the best in market. ING Savings Maximiser's rate today is 5.5% which remains one of the highest in market. However, ING's account does come with several conditions to earn that rate, which could be difficult to meet for some customers. In comparison, some other accounts with similar rates have very minimal conditions to meet. It also only pays bonus interest on balances up to $100,000, while many other accounts pay interest on larger balances up to $250,000.

• Should I declare the interest earned on my tax return?

  Any interest earned on your savings account is treated as income and should be declared when lodging your tax return. This will often already be pre-filled for you, as the ATO usually already has access to your annual bank statements.

• What is a good interest rate for a savings account?

  Currently, any savings rates above 4% are quite good (there are even a few rates above 5% now). Remember - a good savings rate is one that you can easily earn by meeting the account conditions. There's no point opting for the highest rate in the market if you can't meet the account conditions.

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