Best Australian Savings Account for 2019

scrimshaw on 18/03/2019 - 17:55
Last edited 18/03/2019 - 17:56

Moderators at OzBargain are now running yearly polls to decide the best products in popular categories that get asked repeatedly in the forum. Our aim is to have a central thread where users can vote on the items, suggest options and also change their vote throughout the year. For more information on how these polls work, or if you want to suggest a new poll that isn't covered already, please refer to our announcement thread here.

Question

What is the best Australian Savings Accounts for 2019?

Making your own money is hard, so why not put your money to work for you instead?

Last years poll showed that most of you voted for Ubank's Usaver account

What is a Savings account?

Savings accounts, as opposed to Transaction accounts, are high-interest bearing accounts that give you more money in return for the amount of money you put in.
Savings accounts differ from Transaction accounts in one major way; they specifically discourage you to spend money by reducing the interest paid to you if you withdraw from it, but might reward you if you regularly deposit money into it.

Some Key factors to look out for when deciding on a Savings Account:

  • The Interest rate, and how frequently you receive the interest
  • Honeymoon periods - also known as introductory interest rates, these are short periods of time that you'll receive a higher interest than normal before it reverts to a standard interest rate.
  • Minimum and Maximum account balances. Some Accounts don't pay interest if you keep too little in the account, and some won't pay you interest on balances over a certain amount.
  • Account keeping fees
  • What rewards you reap when you deposit in money regularly and what penalties you'll get for withdrawing money
  • There may be certain requirements to fulfil before you can apply for the account (such as having a linked account)

How do I suggest products to What Should I Buy polls?

If you have a product that you would like to suggest for the poll (that is currently not in the Poll Options), you'll need to make a top-level comment (i.e. not replying someone else's comment) and fill up "Suggestions" text box just above your comment:

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Do try to make a sensible suggestion (e.g making sure it's an actual savings account) and include a brief argument as to why you would recommend the product, including what it's benefits are and current interest rate if possible.

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This is part of What Should I Buy poll for 2019. Check out other recommendations from the OzBargain community.
Financial Bank Account Savings Account What Should I Buy

Comments

    • Yola on 02/10/2019 - 20:09
      +1

      Yes 2.41%, and free overseas ATM withdrawals. But ING better for overseas travel as it also reimburses fees charged by the ATM owner. UBank better as a transaction and saving account.

      • arctan on 02/10/2019 - 22:23

        For ING debit card with 5 transactions per month. Does it work with Google Pay or it has to be card tap?

        • crazyboy on 03/10/2019 - 13:05

          Anything, Apple Pay is also fine.

  • crazyboy on 30/09/2019 - 20:57

    86400 is amazing. Its app only. I opened an account in less than 5 mins. No physical ID verification needed. App is just amazing. Less features but fast.

    Opened Ubank also, but verification is to be physically at Aus Post, they ask for 100 points ID. Website and app just average.

    • askbargain on 30/09/2019 - 21:45
      +4

      Is there a point of a savings account being "fast"?

      • crazyboy on 03/10/2019 - 12:57

        You get more interest faster.

  • DeafMutePretender on 08/10/2019 - 03:43
    +1

    Good news (/sarcasm)

    ME Bank stealth dropped their rates by 0.15% to 2.20%. Whirlpool hasn't noticed yet.

    • lachhelix on 08/10/2019 - 16:56

      ING dropped to 1.95% lol =/

      • lordra on 08/10/2019 - 22:09
        +1

        Your new rates from 9 October 2019
        Is now 1.95 (1.7+0.25)%.
        Woe is us!

  • xdigger on 09/10/2019 - 14:27
    +7

    By cutting interest rates, the RBA is forcing everyday moms and dads and pensioners into dumping their savings into riskier investments like the ASX and property where the bubbles are already forming. It is highly irresponsible of a central bank to indirectly use retirees savings to prop up ailing stocks with lopsided PEs and a precarious property market. Whats going to happen to these average Australians when the global recession hits and the bubble finally pops?

    • Pcoder on 11/10/2019 - 11:33
      +2

      +1000

      We're not even at a real crisis yet. The rates are already too low already.

    • abc on 12/10/2019 - 21:31
      +2

      Central banks have the idea that rate cuts stimulate spending. However its my opinion that most discretionary spending is done by baby boomers and retirees who theoretically have little or no debt. Cutting rates for these people that rely on their savings will make them also stop spending.

      The only spending that ultra low rates accelerate is investments in assets (hence you mentioned asset bubble). But hey what do I know i’m not on $1 million per year like Gov Lowe is.

  • DeafMutePretender on 10/10/2019 - 21:57
    +1

    wtf BOQ down from 2.5% to 2.15%

    • JacobHarvey on 11/10/2019 - 00:37
      +1

      Wow that is a bit disgusting considering that they were the stingiest bank in Australia during the most recent cut (passing on only 0.10% of the rate cut for home loans - and waiting until the end of the month to pass it on as well). Fast Track starter is also down 0.35% to 3.15%

  • 1bug on 11/10/2019 - 17:52
    +1
    The latest interest rate drop for UBank (USaver & Ultra)

    Fri 11/10/2019: Interest rate dropped from 2.41%, by 0.31% to 2.10% (1.04% + bonus 1.06%)

    For a list of all rate adjustments since 2014, refer to the Whirlpool UBank wiki:
    https://whirlpool.net.au/wiki/UBank

  • crazyboy on 11/10/2019 - 21:14

    86400 dropped their savings rate to 2.25% p.a.

    • Mibo on 17/10/2019 - 16:05

      same with up bank

      • atlinus on 07/11/2019 - 14:52

        dropping like hot cakes.

        where to park spare cash now?

        • lachhelix on 07/11/2019 - 15:02

          Give it to me, I'll look after it. Just send me a message when you need to use some :)

  • lordra on 13/10/2019 - 11:54
    +1

    With ING, just bear in mind that Once you meet the criteria you will be eligible for the promotion the following month and the higher interest rate is applicable on one Savings Maximiser account for balances up to $100,000.

  • DeafMutePretender on 15/10/2019 - 19:55

    There has been such instability in the interest rates that Whirlpool haven't updated their spreadsheets in weeks.

    https://docs.google.com/spreadsheets/d/145iM6uuFS9m-Rul65--e…

  • baldur on 18/10/2019 - 09:41

    regarding ubank usaver ultra,
    should i deposit 200 dollars per month from ultra transaction to usaver account only? i am confused. so i will two accounts to qualify, one savings account and one daily account?

    https://www.ubank.com.au/campaigns/savings-and-transaction-accounts?cid=ser|cpc|pad|dr|ggl|5336634|sav|brd|22559330|savings&ef_id=Cj0KCQjwoqDtBRD-ARIsAL4pviAbg7ioElPqgOW4btz1K2XMF1-7Egl7vwlVn3cnZzv4ghpnyuZD0RoaAqHIEALw_wcB:G:s&s_kwcid=AL!8569!3!309498732623!e!!g!!ubank%20usaver%20ultra&gclid=Cj0KCQjwoqDtBRD-ARIsAL4pviAbg7ioElPqgOW4btz1K2XMF1-7Egl7vwlVn3cnZzv4ghpnyuZD0RoaAqHIEALw_wcB

    • Yola on 18/10/2019 - 10:11
      +2

      Look here for all the answers.

      https://whirlpool.net.au/wiki/UBank

    • umoddbro on 19/10/2019 - 02:50
      +2

      Yes you need both accounts to qualify, and $200 deposit must be from a non ubank account i.e different bank.

  • kingsville on 18/10/2019 - 09:48

    mebank is down to 2.2% now

  • umoddbro on 19/10/2019 - 02:52

    So much instability that I don't bother moving money around anymore as once you do the rates are gonna get cut again.

  • Fundies on 23/10/2019 - 16:15
    +3

    Rams Saver now 2%. Banks not getting my money any longer, I only keep enough in for general living expenses. I now funnel my excess funds into Super…still making some nice gains there. I can retire in 5 years so can go without for a while.

    • DeafMutePretender on 24/10/2019 - 00:43

      Rams is comparatively now worthless. If you go with rams, then you are basically locking your money up (no withdrawals) for inferior rates.

      Supers looking pretty good as an alternative, but only if you're an old fart or close to being an old fart.

      • Yola on 24/10/2019 - 11:57

        Gee you are calling a lot of people old farts.

    • baldur on 24/10/2019 - 12:25

      you put your savings to your superannuation account? how does it work?

      • CVonC on 24/10/2019 - 13:08
        +1

        What do you mean how does that work? You just make your own contributions….

      • lordra on 27/10/2019 - 16:47
        +2

        Pre tax salary sacrifice. Talk to your payroll or CA about it. Only 15% tax instead of your normal tax rate.

  • scrimshaw on 27/10/2019 - 20:10
    +3

    Interest rates updated today. Actually /u/Scalebearer has been helping me keep the figures up to date (massive kudos) however just bear in mind the rates may change at anytime… and they also change quite frequently: meaning a lot of times, the data goes out of date.

    In future WSIB's I will be leaving out the % figures entirely and it's up to the person opening bank accounts to do their research thoroughly before signing up.

  • cchhiillyy on 01/11/2019 - 21:00
    Suggested Macquarie Savings Account (2.65% first 4 months)

    What about macquarie bank?

    • bluesky on 01/11/2019 - 21:08

      Not great for savings - rate is only 0.35% up to 25K. And then step up to 1.35%.

      • cchhiillyy on 01/11/2019 - 21:54
        +1

        Fair enough, but for first 4 months it is 2.65%.

        • bluesky on 01/11/2019 - 22:08
          +1

          That's a good rate.

        • atlinus on 07/11/2019 - 14:41
          +1

          have you tried creating a new account and transferring those mone to the new account — hoping they also give the bonus interest on the new account number? Anyone tried this

          • Yola on 10/11/2019 - 15:02
            +1

            @atlinus: It works with Citibank.

            • atlinus on 10/11/2019 - 16:33

              @Yola: Will it work in macqiarie and rabo?
              I ask hsbc and they said they dont allow to open new account and get another promo rate

              • bluesky on 10/11/2019 - 16:58

                @atlinus: It is unlikely based on what is written.

                Macquarie

                Where you have not held a Macquarie Savings Account before, the welcome variable rate applies for four months from account opening, for the first $250,000 you deposit.

                Rabo HISA - only allows one HISA to be opened; if you close it, you can only reopen it.

                Intro rate - Can I reopen my closed account? If so will I get the variable bonus rate?

                You can reopen an existing closed account, however, the introductory rate offer is only available for new customers.

                • Yola on 11/11/2019 - 08:06

                  @bluesky: The same is written for Citibank and they also tell you you cannot get the rate again but I have done it several times. But always check statements to make sure. I think its some sort of a glitch. I may try with Macquarie when the one I have ends but there is no guarantee.

                  • bluesky on 11/11/2019 - 12:15
                    +1

                    @Yola: I agree, sometimes conditions are not strictly enforced. Macquarie intro rate is good, certainly worth a try! :-) Good Luck.

                  • abc on 16/12/2019 - 22:44

                    @Yola: How are you managing the accounts? Are you…

                    • Opening a new account before closing the old one?
                    • Closing the old account and then opening a new one?
                    • Opening another account and keeping both open?

                    Also how are you closing the accounts (if so). Are you emailing, calling or sending a form in?

                    Thanks :)

  • hubs1982 on 01/11/2019 - 21:43

    Does anyone with experience with Judo Bank? They are offering 2.1% for 6 months term deposit.

  • atlinus on 07/11/2019 - 14:40

    Is rabo bank good giving 2.50% for the first 4 months.
    Im wondering what is i open a new savings account once the last expires and move over to the new account - will it qualify for another 4mnths of bonus interest?

  • AlienC on 13/11/2019 - 02:02

    Best savings and transaction account for a new worker.

    I want to start a proper savings account.

    So I will be starting from zero and realistically depositing maybe $200 fortnightly into a savings account at the start.

    I am with Westpac Choice Concession Account for now and have an esaver account that is about it.

    Will be aiming to deposit more as I get more work (casual atm so pay is unpredictable) or another job maybe but for now it is just $200 every 2 weeks or $400 per month.

    • lordra on 13/11/2019 - 12:02
      +1

      Thanks for the story. :)

    • bluesky on 13/11/2019 - 14:52
      +3

      If you are still on the Westpac eSaver bonus rate (1.65%) for first five months, that is not too bad. But after that, the standard rate is miniscule (0.1%). Some other better options to consider are:

      • If you could not be bothered with using the card to qualify for bonus rate, the
        Ubank Trans + Savings is still better. You get 2.1% when you deposit $200 per month, and even if you don't, you still get 1.04%.

      • If you don't mind using PayPass on your card 4 times a month, then ME Bank Online Savings gives you 2.2%, or 0.5%, if you do not do the PayPass.

      • AlienC on 13/11/2019 - 21:24

        Thanks for the detailed answers I'll check them out.

        I am thinking maybe I should limit my bank for now to maybe 2 or 3 max otherwise my wallet will hate me and I want to start using NFC on my phone just need to upgrade to a phone with that capability and research more on the dangers and pitfalls of having my phone with that functionality as I know my card is safe in a RFID shield so hackers and skimmers can't steal from it when it is on my bag or pocket wallet.

  • bluesky on 20/11/2019 - 17:44

    ME Bank Online Savings rate has dropped to 2.05% - as of Friday 15/11/19.

  • gyrex on 21/11/2019 - 09:35

    Looking for advice on stashing money into high interest bearings savings accounts since I just sold my property in Sydney and I'm going to hold out until the (IMO) looming recession hits before I buy another property. At this stage, holding cash in a high interest bearing savings account seems to be the best option and the HSBC Serious Savers account appears to be the best option given its relatively large deposit limit of $1M and their rather competitive interest rates. The amount I need to deposit is $2M so I think the best option is to open an account in both my and my wife's name.

    The only issue is that their intro rate is only 4 months. Has anyone had any luck getting this extended or do I need to shovel the money into another bank? Can I close this account then reopen it to get the intro rate again?

    Are there any other accounts that people are aware of which offer decent interest rates with large maximum deposits?

    Thanks in advance for any advice.

    • bluesky on 21/11/2019 - 12:04
      +2

      Two options that might work in your situation are the RAMS Saver (2%) or Suncorp Growth Saver (1.95%).

      RAMS Saver: You can open up to 10 accounts; each can have a limit of up to 500K to still qualify for the bonus rate. You need to increase the balance of each account by $200 per month and have no withdrawal.

      Suncorp Growth Saver: As far as I know, there is no $ limit before the bonus becomes ineligible. As long as you increase the balance by $200 per month, and you are even allowed one withdrawal per month.

      Please verify that this info is accurate and up-to-date if you decide to embark on any of these options.

      • gyrex on 21/11/2019 - 12:29
        +1

        Thanks mate. I've done some investigating regarding the HSBC Serious Saver account and reports indicate that HSBC won't allow you to reopen the account to take advantage of the intro interest rates. What I might do is use that account for 4 months and move my money to RAMS if they allow accumulation on multiple accounts above and beyond their $500K limit. Thanks again for your advice!

        Edit: RAMs will allow deposits up to $5M using the accumulated total from 10 accounts with a maximum balance of $500K

        https://imgur.com/D4vamRd

        • spaceflight on 21/11/2019 - 21:32

          Me bank will give you a slightly higher interest rate, each account is limited to 250k but you don't need to meet deposit requirements.

          You only need transaction on the debit card they issue.

          • gyrex on 22/11/2019 - 00:17

            @spaceflight: Thanks mate! I think I'll start off with HSBC for 4 months @ 2.35%, then move to Bankwest for 4 months @ 2.25% and if I'm parking the money any longer than that I'll move again :)

    • Bob81 on 16/12/2019 - 14:22

      If you have a large bank balance, have you tried negotiating with your current bank to offer you a better rate?

    • rooon on 03/01/2020 - 13:52

      Diversify across multiple institutions in you and your wifes name to get the Aus Gov guarantee on deposits up to $250k per person per institution. That way if the bank does go under during the recession you wont lose everything.

      • Yola on 04/01/2020 - 12:35

        But also need to consider if one of you is in a lower tax bracket or pays no tax.

  • [Deactivated] on 13/12/2019 - 17:05
    +1

    Almost worth listing Bankwest Qantas transaction account now…

    144% Qantas points PA, essentially 1.73% at 1.2c/point. Potentially untaxed too*.

    *Not an accountant. Don't use this as professional advice.

    • abc on 16/12/2019 - 22:49

      The points earned are untaxed. I've never had to declare them in my tax. How would you tax something that isn't classed as "bank interest"?

  • deme on 17/12/2019 - 15:45
    Suggested Rabobank High Interest Savings Account 2.5%

    Rabobank

    • abc on 17/12/2019 - 17:36

      4 month intro rate.

      • atlinus on 25/01/2020 - 10:37

        Can ypu open a new account after 4months?

        • Yola on 25/01/2020 - 15:10

          You can with Citibank. No one on here or Whirlpool has reported on this re Rabobank. With Citibank if you ask them about it, as I have, they will tell you that you cannot but I have been doing it for 2 years.

          • abc on 25/01/2020 - 16:26

            @Yola: Are you closing the old accounts before or after opening a new one?

            • Yola on 27/01/2020 - 11:44

              @abc: I used to move the funds out but not close the account. Now I do not even do that and just open the new one a few days before the current one expires.

  • lordra on 17/12/2019 - 17:23

    https://www.businessinsider.com.au/volt-neobank-savings-acco…

    Neobank is starting to boot up.

    • atlinus on 17/12/2019 - 19:25

      86400 has higher interest rate

  • [Deactivated] on 24/01/2020 - 12:30

    Under 2% holycrap is that all the bank is offering?

  • 1bug on 09/03/2020 - 12:05

    The latest interest rate drop for UBank (USaver & Ultra)

    • Mon 09/03/2020: Interest rate dropped by 0.25% to 1.85% (0.79% + bonus 1.06%)

    For a list of all rate adjustments since 2014, refer to the Whirlpool UBank wiki:
    https://whirlpool.net.au/wiki/UBank

  • 1bug on 10/04/2020 - 00:04
    +2

    The latest interest rate drop for UBank (USaver & Ultra)

    • Thu 09/04/2020: Interest rate dropped by 0.25% to 1.60% (0.54% + bonus 1.06%)

    For a list of all rate adjustments since 2014, refer to the Whirlpool UBank wiki:
    https://whirlpool.net.au/wiki/UBank

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