Some of the top-rated savings accounts in September 2024

Australia’s money in the bank recently hit another record high, despite cost-of-living pressures. But how long will this likely last in the face of potential future interest rate shifts?

According to data from the Australian Prudential Regulation Authority (APRA), Australians saved an extra $30.81 billion in July 2024. This brings the total saved across term deposits, transaction accounts, mortgage offset accounts and savings accounts with authorised deposit-taking institutions (ADIs) to $1.50 trillion.

The data also found that since the Reserve Bank of Australia (RBA) first started its hiking cycle in 2022, Australians have deposited over $230.20 billion with ADIs. Many Australians have been able to further grow their wealth during this time, thanks to rising interest rates.

However, the current situation won’t last forever. Some banks have already begun slashing fixed interest rates on selected term deposits, potentially in anticipation of future rate cuts from the RBA. While the RBA governor has indicated a rate cut is unlikely to arrive this year given the current data, three of the four big banks currently reckon a rate cut will be due sometime in early to mid 2025. This could potentially see interest rates slashed on some savings accounts, which could affect the savings goals of many Australians.

Regardless of what interest rates and the economy are doing, it’s important to regularly look at your savings account and consider if it still suits your changing circumstances. Comparing savings accounts could help you find alternative choices with better interest rates, lower fees, or more flexible features and benefits. For example, another ADI may offer a savings account with bonus interest conditions you can comfortably fulfil, allowing you to more easily enjoy the benefits of the higher bonus interest rate without changing your lifestyle too much.

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.)

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