Score high-interest savings rates in May 2023

The Reserve Bank of Australia (RBA) kicked the cash rate up to 3.85% in May. The highest interest savings accounts exceed 5% - advantageous for anyone who can manage to put some funds aside.

Australia’s central bank has raised rates eleven times since May 2022, only pausing once in April 2023 to evaluate the economic landscape and review its efforts to quell the scourge of high inflation.

This is the highest the cash rate has been since mid-2012, encouraging banks to offer high-interest savings rates not seen in more than a decade.

At the time of writing, RateCity lists six different banks offering ongoing rates of 5.00% or higher:

Source: RateCity.com.au data accurate as of 12/05/2023. *Bank is yet to announce its May RBA hike. Monthly conditions apply for max rate. Excludes kids savings accounts.

While this is great news for savers, it’s important to note that the leading rate, offered by the Bank of Queensland, is exclusively available to customers aged 14 to 35 years on balances up to $50,000.

For this reason, it’s sensible to look at more than just the maximum interest rate. Compare savings account fees, minimum and maximum balances and other features - such as introductory and bonus interest terms - to find an account that suits your financial goals.

Your savings are an essential safety net that can help you in emergencies, enjoy luxuries, and live a comfortable life when you’re no longer working. But working out how much savings you really need will depend on multiple factors.

There is no single best savings account as everyone’s needs are different. To get a better idea of which accounts may provide the most value for your money, you could consider comparing their Real Time Ratings™, to evaluate interest and flexibility scores.

Check out these lofty bonus saver accounts

A savings account with a bonus interest rate operates like a regular high-interest savings account, except that in exchange for meeting specific conditions you’re awarded a bonus interest rate that can help you reach your savings goal sooner.

It’s worth noting that bonus rates are generally temporary, which means that after a specific period, the bonus rate will revert to a normal base rate. When you’re comparing bonus rate accounts, check what happens when the honeymoon period ends.

Explore savings accounts for $100k+ balances

Are you keen on maximising the interest you could earn on a balance of $100,000 or more? Compare high interest savings accounts to decide which option may offer the best bang for your big bucks.

Discover uncomplicated online savings accounts

Many Australians conduct all their banking transactions digitally these days. A number of banks offer online savings accounts as a way to pass on the reduced costs of having no physical branches. All services are performed in-app, online or over the phone.

Compare savings accounts