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Saving for a rainy day? Some of the top-rated savings accounts in May 2024

Saving for a rainy day? Some of the top-rated savings accounts in May 2024

13 May, 2024 - 3 min read

Key highlights

Compare savings accounts to find the best option for your needs and financial goals, ensuring your money is working for you.

Consider the potential impact of interest rate changes and inflation on your savings, and choose an account that offers competitive rates.

Utilising active saving strategies and bonus interest options could help to maximise your savings and reach specific financial milestones.

How are you managing your savings? Whether you have a savings goal you’re actively working to achieve, or are simply regularly putting a little aside for a rainy day, you’ll want to be confident that you have a savings account that suits your needs. Comparing savings accounts could be an important first step on the road to financial security.

Data from the Australian Prudential Regulation Authority (APRA) indicates that Australians are currently sitting on a record $1.47 trillion in deposits across savings accounts, term deposits, mortgage offset accounts and transaction accounts. This is almost $200 billion more than before the start of the cash rate hikes two years ago. In March 2024 alone, more than $8.2 billion was deposited in banks and other Authorised Deposit-taking Institutions (ADIs).

It's not too surprising that many Australians are prioritising saving where possible. It’s unclear when the Reserve Bank of Australia (RBA) may cut interest rates, which could offer some cost-of-living relief to mortgage holders. It’s also possible that the central bank could end up raising rates again in response to sticky inflation, so a savings buffer could be helpful for limiting potential future financial stress.

However much money you have saved, it’s worth comparing savings account options to help ensure that your account will suit your needs. RateCity’s Real Time Ratings™ could help you here, as they are based on the cost and flexibility of different savings accounts and updated regularly for accuracy. The top-rated savings accounts on RateCity’s Savings Account Leaderboards may also be eligible for a RateCity Gold Award.

Some of the top-rated regular savings accounts

A recent survey showed that some Australians have been making significant lifestyle cutbacks and pocketing the difference as savings. By making some cutbacks, it may be possible to save an extra $320 to $370 per month.

Active saving strategies can often be helpful for reaching specific financial goals, such as saving up a house deposit. Savings accounts that offer bonus interest can also help savers reach these goals, as long as the savers can comfortably satisfy the conditions for the bonus interest, such as making regular deposits and no withdrawals.

The top-rated savings accounts suitable for the everyday saver. Assumes a $10,000 starting balance and monthly deposits of $600. Excludes kids' and pensioners' accounts.

Some of the top-rated standard savings accounts

Australians who don’t have a specific savings goal may still want to make sure that they have the best possible savings account for their needs. For example, looking for a savings account with an interest rate that’s higher than Australia’s inflation rate can help to prevent your money from going backwards. Just remember to consider taxes on your interest earned when making your calculations.

The top-rated savings accounts suitable for savers who want complete freedom while still earning interest. Assumes a balance of $10,000 at any given time. Excludes kids' and pensioners' accounts, as well as accounts that offer bonus interest if certain terms and conditions are met each month.

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Product database updated 15 Jan, 2025

This article was reviewed by External Comms Lead Eden Radford before it was published as part of RateCity's Fact Check process.

Mark Bristow

Personal Finance Editor

Mark Bristow is RateCity's Home & Personal Finances Editor, and an experienced analyst, researcher, and producer. While primarily focused on Australian mortgage and home loan expertise, he has experience across energy, home and travel insurances. Mark has been a journalist and writer in the financial space for over ten years, previously researching and writing commercial real estate at CoreLogic. In the years since, Mark has worked for the Winning Group, Expedia, and has seen articles published at Lifehacker and Business Insider.