Some of the top-rated savings accounts in March 2024

How big a difference does your savings account interest rate really make? You may be surprised by the effect that a high-rate savings account could have on your wealth, depending on your saving strategy. Just make sure that the account you choose is one that suits your needs and can help you reach your goals.

According to RateCity’s research, if you deposited $1000 per month and made no withdrawals, a savings account earning 1.10% would net you an extra $342 after a year, compared to the extra $1740 you could earn from a savings account with a 5.50% interest rate. That $1399 difference is the equivalent of over 300 coffees, or three return flights from Sydney to Melbourne.

So does this mean you should always look for the saving accounts offering the biggest interest rates? Not necessarily. High-interest savings accounts often require you to fulfil specific terms and conditions to receive the maximum interest rate, such as depositing a minimum sum each month and making no withdrawals. If you don’t meet these requirements, you may earn interest at a much lower base rate, and make much less progress towards your savings goal. Before selecting a savings account, it may be worth checking what’s required to receive its bonus interest rate, and consider if you can easily meetthese requirements as part of your everyday household budgeting.

It's also worth considering whether a savings account is the best place to deposit your money. Depending on your level of risk tolerance, you could also consider investing part of your wealth into other assets, or locking it away in a term deposit for some time. If you have a mortgage on your home, it may be worth thinking about whether your money could do more good in your offset account, which can help to reduce the interest charges on your mortgage so it can be paid off sooner.

To help speed up your savings account search, RateCity offers Real Time Ratings™ that combine the interest and flexibility of savings accounts into a single simple star rating to indicate their overall value. These ratings are regularly updated to better maintain their accuracy in a changing market. The top-rated savings accounts in different categories are ranked on RateCity’s Savings Account Leaderboards. Some of the top-rated savings accounts may also become eligible for a RateCity Gold Award. 

(Rankings are correct at the time of publishing. Please note lenders may trade places on the list as interest rates and fees change and RateCity’s tracker reflects these movements.)

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