Some of the top-rated savings accounts in October 2024

There seems to be a growing trend among banks to promote regular savings by offering conditional bonus rates, rather than providing high base rates with no strings attached to customers. ANZ recently announced changes to its ANZ Plus Save account, lowering the base interest rate to 0.50% unless customers grow their balance by $100 or more monthly. A bonus rate of 4.50% applies to those who meet this condition, taking the maximum rate to 5.00%.

The recent move by ANZ may affect how many Australians manage their savings, as ANZ previously offered an ongoing 4.90% rate with no conditions for balances below $250,000. In addition, ANZ launched a new account, the ANZ Plus Flex Saver, offering 5.00% for balances under $5,000 and 2.00% for amounts above that.

These changes follow similar moves by Westpac, which recently adjusted its Life Savings account. In September, Westpac reduced the base rate by 0.15 percentage points while increasing the bonus rate by the same margin.

Those looking to grow their savings by placing their money in a high-interest savings account must ensure they can actually meet the conditions for earning these high rates. However, not many account holders seem to be meeting these conditions regularly.

According to the ACCC's final report from its Retail Deposits Inquiry, in the first six months of 2023, an average of 71% of bonus interest accounts did not receive bonus interest in any given month. This indicates that a significant portion of account holders were unable to meet the conditions required to qualify for the bonus interest during that period.

If you're in the market for a better deal, you're not alone. RateCity reports that 126 savings accounts currently offer rates above 3.50% for adults, with the highest rate at 6.00% for balances between $50K-$100K. But remember to read the fine print before signing up for a new account. Some of these accounts may come with strict conditions that could prevent you from earning the advertised rate if you don't meet all the requirements.

To help you in your savings account comparison, RateCity’s Real Time Ratings™ combine the interest and flexibility of different savings accounts into a single star rating. These ratings are regularly updated to better reflect a saving’s account’s overall value at any given time, and are ranked in different categories on RateCity’s Savings Account Leaderboards. Some of the top-rated savings accounts may also be eligible for a RateCity Gold Award.

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

Source: Source: RateCity.com.au. Excludes kids and young adults accounts. Data accurate as of 02/10/2024.