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What you could get with the difference in interest from a high interest savings account
The interest rate on your savings account can sometimes make the difference between you having a savings goal, and you achieving it.
With so many accounts to compare from, it can be tricky to really understand just how much of an impact an interest rate can make on your finances - and for some people, the ‘hassle’ of switching can seem hard to justify.
However with the cash rate likely at its peak, it’s important that anyone hoping to make the most of their savings is in the right account with the best interest rate for them - even if it means making a switch.
So, how much of a difference does a high interest savings account make?
While there are many factors that go into choosing the right savings account for you - and you should always find an account that suits your lifestyle and financial circumstances - the interest rate ultimately determines how hard your money will work when it’s in your account.
RateCity research compared a low interest rate account, at 1.10%, with a high interest rate account, at 5.50%, and applied the same saving patterns: a monthly deposit of $1,000, no withdrawals.
After one year, the interest saved on the low rate account was $342. The interest saved on the high rate account was $1,740.
That’s $1,399 more saved on the high interest account, despite everything else being the same. Not bad.
Difference in interest earned high interest savings account vs low interest savings account
Balance of $25,000
Rate | Balance of $25K | |
ING Savings Maximiser | 5.50% | $1,740 |
Westpac eSaver | 1.10% | $342 |
Difference | 4.40% | $1,399 |
Source: RateCity.com.au Note: assumes existing customer for low rate account, and monthly terms and conditions are met for max available interest on highest savings account. Assumes monthly deposit of $1000. Does not factor in rate changes.
To help put that into perspective, we’ve compiled a list of all the things you could get for $1,399.
- 310 lattes (at $4.50 each)
- An iPad Pro
- 3 x return flights from Sydney to Melbourne, flying Qantas (traveling economy, in April)
- 100 large Big Mac combos (at $13.95 each)
- 215 bubble teas (at $6.50 each)
- 51 tickets to an AFL game (at $27 for an adult)
Remember that every person has different financial goals and savings habits, so it’s important to find a savings account that you’re comfortable with and confident you’ll meet the terms and conditions for.
Use tools like RateCity’s savings account comparison tool to see what options are out there, and how they could work for you.
Compare savings accounts
3.55%
intro 4 months then 2.85%
2.85%
Not applicable
- Promoted
- Intro offer rate
- App banking
- Online banking
- Linked account required
3.65%
intro 3 months then 1.40%
1.40%
Not applicable
Online Saver
- Intro offer rate
- App banking
- Online banking
- Linked account required
5.20%*
1.85%
*Make a deposit and make 5+ purchases on your W...
Westpac Life - 18 to 29 years old
- 2024 Award Winner
- Bonus interest with conditions
- App banking
- Online banking
- Linked account required
5.00%*
2.60%
*Grow your balance (excluding interest and bank...
Youthsaver Account
- Bonus interest with conditions
- App banking
- Online banking
Product database updated 10 Jan, 2025
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Promoted savings accounts
Savings Accelerator (Kick Starter offer)
Real Time Rating™
- Intro offer rate
- App banking
- Online banking
- Linked account required
Maximum rate p.a.
3.55%
intro 4 months then 2.85%
Base rate p.a.
2.85%
Online Saver
Real Time Rating™
- Intro offer rate
- App banking
- Online banking
- Linked account required
Maximum rate p.a.
3.65%
intro 3 months then 1.40%
Base rate p.a.
1.40%
Westpac Life - 18 to 29 years old
Real Time Rating™
- 2024 Award Winner
- Bonus interest with conditions
- App banking
- Online banking
Maximum rate p.a.
5.20%*
Base rate p.a.
1.85%
Youthsaver Account
Real Time Rating™
- Bonus interest with conditions
- App banking
- Online banking
Maximum rate p.a.
5.00%*
Base rate p.a.
2.60%
Product data updated on 10 Jan 2025
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