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Money in the bank ain't what it used to be
There are now very few transaction accounts in Australia that pay even 1 per cent in interest without imposing monthly fees or difficult conditions.
A RateCity analysis has found three that fit the bill – bank accounts from Gateway Bank, Bank of Sydney and Macquarie Bank (see table below).
None charge a monthly fee. All three pay at least 1.10 per cent in interest, provided you have a minimum balance of anywhere from $1 to $5,000 (depending on the bank).
While there are other everyday bank accounts that pay higher interest rates, they charge monthly fees or require sizeable balances or require sizeable monthly deposits.
There are also some pension bank accounts and student bank accounts that pay higher interest rates without charging monthly fees.
Australia’s inflation rate is currently at 1.9 per cent, so deposits in those Gateway, Bank of Sydney and Macquarie accounts are actually going backwards in real terms.
| Lender | Account | Monthly fee | Interest |
|---|---|---|---|
| Gateway Bank | Edge Account | None | 1.50% for balances of $1,000 and above (0.01% up to $999) |
| Bank of Sydney | Everyday Saver | None | 1.35% for balances of $1 to $50,000 |
| Macquarie Bank | Transaction Account | None | 1.10% for balances of $5,000 and above (0.00% up to $4,999) |
Disclaimer
This article is over two years old, last updated on July 1, 2018. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent bank accounts articles.
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Product database updated 26 Nov, 2024
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