Best Australian Savings Account for 2020

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 2020?

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:

Suggestion box

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.


This spreadsheet is maintained by users on Whirlpool forums, please note the figures are not updated in real time. All credits go to the maintainers of this document. Please note that it is your own responsibility to do your own product research before opening any bank account, no-one else can be held responsible for any adverse events (or financial loss) that you may encounter through the use of this list.

Poll Options expired

  • 180
    Up Saver
  • 82
    ING Savings Maximiser
  • 71
    UBank USave
  • 40
    Macquarie Savings Account
  • 36
    86 400
  • 8
    CUA eSaver Reward Account
  • 7
    UBank USave + USpend Transaction Account
    Suggested by Kyle-K on 17/05/2020 - 23:19
  • 6
    BOQ Fast Track Starter Account
  • 6
    Westpac Life Savings Account (18-29 yr old)
    Suggested by skido on 21/11/2020 - 12:23
  • 5
    mebank Online Savings Account
  • 4
    HSBC Serious Saver
  • 3
    Australian Unity Active Saver
    Suggested by beta4me on 09/08/2020 - 01:36
  • 1
    RAMS Saver Account

Comments

  • -3 votes

    Bitcoin savings account

  •  

    CUA esaver extra account ??.
    Can find no reference… could a link be provided?

    •  

      Was around in 2019. I think this offering might be deleted, so I'll cull it from the list.

      •  

        yeah CUA has two accounts now

        1.7% if you deposit $1000 per month into your main CUA everyday account (eSaver Reward)
        or
        1.0% Flat Rate, No Min Deposit, No fees etc (eSaver Flexi)

    • +1 vote

      CUA eSaver Reward.

      I quite like this account:

      • They provide an Osko payment limit of $5K per day.
      • You can schedule future bills/payments and direct debits from it.

      But CUA does have some minor quirks compared to many other bank accounts, including:

      • Although this is leap year, most other banks still use 365 days for interest calculation. But CUA uses 366. So we are getting just that little bit less interest.
      • The monthly base interest is always precise to the cent, but the bonus interest is always 1-2 cents less (in my case). Since other banks can get it spot-on, would be nice if theirs is also spot-on.

      Given the pros, these are small issues, but just my observations.

  • +10 votes

    MACQUARIE SAVINGS ACCOUNT

    2.65%pa
    Welcome variable rate
    Earn a welcome variable rate for the first four months from account opening, on deposits up to $250,000 in your first savings account.

    1.35%pa
    Variable rate up to $1m
    After four months, earn a great ongoing variable interest rate, currently 1.35% pa on balances up to $1m and 1.05% pa on balances above $1m. If it’s not your first savings account, you will receive the above rates from the outset.

    No fees
    With no fees, every dollar you deposit brings your savings goals closer.

    •  

      After 4 months chuck it to mebank!
      Check term rates at Judo

    •  

      It is 2.26%pa welcome rate (was 2.65% months ago).

  • +3 votes

    I guess Xinja doesn't register as they have restricted access?

    •  

      You need to mention that they use the slang stash. The rates: Currently 2.25% up to 245k.
      https://help.xinja.com.au/hc/en-us/articles/360038395792-Do-...

    •  

      Yeah, I have a Xinja stash, but the door is closed to new accounts.
      So I'll have to vote for an account that anyone can open now…

    • +2 votes

      Xinja have just announced a rate drop to 1.8% from May 11th. Will be interesting to see whether people transfer out to other options?

      •  

        I'm now open to suggestions that aren't promotional ones. Noted I have 86400, ING and UBANK.
        edit: looks like 86400 ftw.

        •  

          As I mentioned here

          for the best rate you should always just keep an eye on the spreadsheet put together by whirlpool members here not to mention if you were always chasing the best rate you'll be moving like every rate drop.

  • +1 vote

    Interesting.
    Far better option available than top two voted.

    • +2 votes

      Yeah, I don't understand why everyone is voting for Ubank. It's not the best rate and requires you to deposit $200 monthly.

      •  

        Because they are herd followers and can't be bothered doing any research and prefer to be blindly spoon fed.

        • -2 votes

          lol as usual the neggers come out of the woodwork.

        • +3 votes

          No mention of Australia's big 4 WANC BANKS (Westpac, ANZ, NAB, Commonwealth) at least.

      •  

        They have not been Nabbed yet!

      •  

        Ubank and UpBank both have 1.6% savings interest. All you have to do is deposit 200 in ubank.

    •  

      Why is it better than ING Savings Maximiser? The ING one has 1.8% interest vs 1.35%

      • +2 votes

        UBank Usaver is currently 1.6% - previously they have been the more 'generous' bank - only passing on partial rate cuts with no silly transaction requirements.

        And the $200 requirement was pretty low.

    • +1 vote

      Such as?
      I find ubank handy as I don't have to keep funds in the regular account as sweep takes care of it
      Deposit limit is pretty low and easily achieved with salary inputs

      And the rate isn't far of the others

    •  

      Currently looking now, what options are better? Aside from Xinja which isn't allowing signups.

      • +1 vote

        Depends what do you need are you chasing the best interest rate?

        •  

          I guess so! Right now I'm with NAB so anything's better haha. I'm a little confused as to why it's contentious, why wouldn't I just want the one with the best rate? Are there other factors to consider? (Aside from my eligibility to receive the full rate for each bank)

          Thank you!

          • +1 vote

            @snoopydoop:

            I guess so! Right now I'm with NAB so anything's better haha. I'm a little confused as to why it's contentious, why wouldn't I just want the one with the best rate? Are there other factors to consider?

            for the best rate you should always just keep an eye on the spreadsheet put together by whirlpool members here not to mention if you were always chasing the best rate you'll be moving like every rate drop.

            (Aside from my eligibility to receive the full rate for each bank)

            Yeah that'll also be a factor you'll probably have to do monthly hoops to get a better rate.

            Are there other factors to consider?

            Yes, People like to look at their whole banking situation as a whole including the transaction account. Some people like the savings accounts to have certain features like being able to have direct debits come out of them.

            Some of the new ones considered Neobanks which have been pretty decent performers overall with each rate drop over the last six months allow you to have multiple accounts receiving the bonus interest some will also only pay the bonus interest up to a certain amount. Some other things are some banks are just straight through savings accounts others will require you to get the transaction account product as well.

            But most of this you can look through the spreadsheet that I have linked to above which will have some of that information. One thing that's not shown in the spreadsheet link to above is some people like to chase introductory savings rate offers these offers are like higher interest rates then you'll see in the spreadsheet for example for a period of 1 to 6 months varies per offer.

            •  

              @Kyle-K: Thank you so much Kyle, I really appreciate the detailed explanation! Have a nice day mate

  •  

    I'm thinking of switch to 86 400 or Up from ING, although the interest rates on savings isn't that much better

    • +1 vote

      I'm with 86 400 and ING. Much prefer 86 400, overall far better experience and better app imo

      Biggest thing for me is not worry about hitting 5 transactions each month to get the bonus interest

      •  

        Not sure if you've read elsewhere, but you can do 5 quick xfers on Beemit and that counts towards your transactions

        •  

          ahh that's interesting! already with 86 400 though and pretty happy. i also don't really use beem anymore now that I have PayId and it's the same interest rate at Up bank anyway.

          thanks though :)

      •  

        nice pick up! thanks :D

  • +1 vote

    Can I add that we should maybe add interest % in the header (maximum interest achievable if all criteria is met - call out if it is something not accessible to everyone eg. BOQ)?

    Macquarie Savings Account is the clear leader if you're interested in four months intro, addtionally their transaction account is also highly rated.

    Citibank is offering 2.05% for four months as well.

    With a little bit of switching back and forth i think you will get greater return than your two leaders ing/ubank.

    • I will not be adding interest rates in the header, reasoning here.

      •  

        Maybe it's worthwhile mentioning the spreadsheet maintain by Whirlpool users that's available here

  • +2 votes
    Suggested CUA eSaver Reward Account

    CUA eSaver Reward Account - 1.70% Total rate ongoing

  • +1 vote

    I prefer ING not only because of the good interest rate but because of features of their transaction account - zero ATM fees worldwide and zero international transaction/currency conversion fees (uses the real conversion rate). As an international student it means I can seamlessly access my money in any place or currency without penalty and by using ING for both there is no friction transferring between transaction or savings accounts as it is instant without fail. Most other banks seem to have a gap somewhere - for example Ubank do not reimburse fees charged by ATM operators by ING do.

    •  

      The only thing that special with ING is the international ATM reimbursement that's the only thing you can't get with any other provider.

      •  

        Yeah but what I am saying is ING seem to have it all for free.

        ING also allow you to open visa dispute (chargeback) free of charge whereas some others charge for this.

        • +1 vote

          ING also have free bank cheques where other banks charge $10 plus

          •  

            @17833: Macquarie Bank cheque fee is $0.

      •  

        lukethefish:

        Yeah but what I am saying is ING seem to have it all for free.

        Not really a lot of providers will give you everything except the ATMs with no monthly requirements or less monthly requirements then ING.

        ING also allow you to open visa dispute (chargeback) free of charge whereas some others charge for this.

        Most of the good ones that you'll see mentioned in here don't charge to do a chargeback.

        17833:

        ING also have free bank cheques where other banks charge $10 plus

        There's others that offer this as well.

        •  

          Ok well with my situation (earning less than full time minimum wage as a PhD student) I can meet the requirements and ING are the best.

          • +1 vote

            @lukethefish:

            I can meet the requirements and ING are the best.

            Because you can meet the requirements? that you could easily meet at another institution or not have at all I will restate the only benefit is foreign ATM reimbursement they haven't had a competitive interest rate for most of this year and some of last year.

            Most of the other functionality most of the others will give you and they won't tie a monthly requirement to. I'm not questioning your choice I'm just saying it's not the best if you were to make this decision today people need to do their own research.

            Especially if you don't need foreign ATM operator fees rebated to you.

            •  

              @Kyle-K: Not sure about the interest rates from last year, but im in the same position, looking to switch and ING is coming up near the top.
              Looking at that whirlpool spreadsheet (and verifying with the banks website) it still is a really good choice.
              Interest rates are 2nd highest with only BOQ offering 0.0005% higher (ie 1.85% vs 1.80%). The other 2 banks offering 1.85% do not suite my personal banking requirements.
              The monthly requirements are not an issue if used as your main transaction account.

              So unless Im missing something, I dont see how there is something that is way out in front that would clearly be well ahead of ING?

              •  

                @locosam: that's 0.05%

                •  

                  @Meovel: Ah yeah, i shouldve said 0.05%. But what i meant was the calculation would be 0.0005 of extra interest. So on something like 50k, its something really small like $25

  •  

    I have been moving my money from Ubank to ING savings maximiser because of the interest rates. I voted for HSBC thou because they have a $100 bonus signup and 2% cashback and their account has a 1.85% interest, still waiting for it to be opened from the recent deal.

    Also ratesetter is offering 7.7% right now for the one month loans.

  •  

    BOQ seems to be the best ongoing interest rate (2%) that I can find (excluding 4 - 6 month introductory offers). UBank haven't been competitive lately.

    •  

      I also saw their offer today - 2% and can't find any mention of any introductory period. How is their app though?

      •  

        Haven't used their app, but their website is the worst of any bank I've ever used. I wouldn't plan on making BoQ your main bank. Use it for earning interest, and in August (or perhaps July) you'll have to start making 5 card uses and 1k deposit per month (into the Day2Day, then transfer to the saver) in order to get the bonus rate.

        Personally, I think the neo banks have good apps. I have Up, Xinja and 86400 accounts. I think they're pretty good for day-to-day use.

      •  

        App is utter trash…

        Terrible UI and login process and no support for payID or Osko.

        No notifications

  • +2 votes
    Suggested UBank USave + USpend Transaction Account

    Given the rebranding over it ubank probably should update the poll to reflect the new names.

  •  

    Anyone using UP know if you can export transactions into a csv file or other file type so that you can import into accounting software?
    Also do they send or email bank statements?

    • +2 votes

      https://up.com.au/blog/csv-custom-savings-viewer/

      "we've added the ability to export to a CSV"

      They also have an OFX option too

      Bank Statements (PDF files) are available to download within the Up Banking app under Statements.

      •  

        Thanks Finbar. That is mighty helpful.

  •  

    …..and UP have just announced they’re dropping their UP Saver Account combined rate to 1.6% as of July 15th.

  •  

    Westpac has just announced a 3%pa savings account if you meet a few things and are between the age of 18 - 30. https://www.westpac.com.au/personal-banking/bank-accounts/sp...

  •  

    Just received an email from 86400 -:

    Effective Tuesday 14 July 2020 we’ll be adjusting our variable Save account interest rate from 1.85% p.a. to 1.70% p.a.

    Our base rate will remain at 0.25% p.a. and the bonus rate will be 1.45% p.a. paid on balances up to $100,000 per Save account, to a maximum of $300,000 per customer.

    Wonder who will be next to drop their rates?

    • +1 vote

      ING from 1.8 to 1.65% from 31st July.

      •  

        nit - 30th Jul

    •  

      86 400 today:

      Effective Tuesday 4 August 2020, the variable interest rate on your Save account will change from 1.70% p.a. to 1.60% p.a.  

      Base rate 0.25% to 0.15%. Bonus 1.45% remains.

  •  

    I have a Macquarie Saver wilth 2.65% which was a promo for 4 months. Unfortunately this ends soon, what is the next best at the moment?

    •  

      See the section at the top about the whirlpool comparison spreadsheet. But expect the rates to be unstable.

  •  

    I've had a quick look at the spreadsheet and it appears as though an ING Savings Maximiser account is the best option for savings balances > $50K whilst accounting for vote totals (discounting honeymoon rates)? I'm quite new to this and with a CBA GoalSaver account so all of these options sounds preferential.

    • +1 vote

      From my quick look ING Savings Maximiser does look like one of the better options for >$50k.

      Quite often people will cycle through the honeymoon rates. Rough numbers: For $100k, a 0.1% difference in rates is $100/yr not including compounding. Depending on your balances, easy of transfer etc its often worth taking a higher rate for 3-6 months and swapping up when its done. Doesn't look like there are that many good honeymoon rates at the moment anyway, so depending on your circumstances this could be a good option for you.

      From the list, it looks like you need to have 5 transactions in the month to get the bonus interest. UBank is another good option (lower monthly deposit, don't need to do the transactions). Australian Unity also looks pretty good if you don't need to withdraw money from the account.

      •  

        Yes the Australian Unity Active Saver account seems quite good to park money for the whole month (no withdrawals) with 1.75% interest rate.
        Does anybody have this account?
        Any feedback/review?

  •  

    HSBC had dropped the Serious Saver account bonus interest rate from 2.1% to 1.75%.
    Soon enough it will be better to stuff money in the mattress than to leave it in a bank account…

  • -1 vote
    Suggested Australian Unity Active Saver

    Best interest rate by 0.1-0.15% with a higher cap ($500K) and without the hoops to jump through that Illawarra Credit Bonus Saver has.

    •  

      It is very difficult/expensive to get the money out of Australian Unity once you have deposited it in. Their online transfer out limit is only $20K. Anything more it has to be done on the phone and they charge fees of $30 for transfers within 24 hours!

  •  

    Best interest rate by 0.1-0.15% with a higher cap ($500K) and without the hoops to jump through that Illawarra Credit Bonus Saver has.

    1.75% not too bad but some hoops to jump…
    Earn bonus interest when you deposit a minimum of $100 each month and make no withdrawals.

  •  

    So Australian Unity Active Saver is currently the best?

    •  

      Not anymore. The rate has dropped to 1.5%.

  •  

    Any other banks offering a sign on bonus like HSBC 100$?

  •  

    Has anyone else's HSBC Serious Saver interest dropped to 1.50% ?
    Their website still says 1.75%

    •  

      Just checked mine, yep now saying 1.50%. I don't think they told me last time either.

  •  

    Important to check all the fine print on these. Some only have good interest for a short amount of time. Some require you to spend 5 times a month on a debit card. Some require a monthly minimum deposit, or charge fees for a debit card, and a number of them only have a good interest rate up to a certain amount.

    I found USave to be the most straightforward and least restrictive.

    •  

      Only 1.6% p.a. though

      •  

        To get more than that you either have to jump through a lot of hoops, or it only applies to a limited amount.

        •  

          With USave they also have a $250K limit and you have to deposit a minimum of $200 per month.
          So some hoops to jump there too…

          •  

            @Mad Max: $250k is much higher than certain others. I think one has a $50k limit. $200/month is easy; it's having to make 5 transactions a month on a debit card that would irk me. To each their own I guess. Whichever hoops suit you best.

  •  

    ING have just announced they're dropping their rate to 1.5% from September 25

    •  

      Did you get an email?

      •  

        Yep, around 12:30pm today

        •  

          Ok thank you. My email must be taking the long way round.

  •  

    Up dropped to max of 1.1%, but increase of max 50k to 1m

    • +2 votes

      Wow that's a big drop! Bye UP.. it's been fun

    •  

      Where did you see that?

      • +2 votes

        It's under talk to us in the app

        •  

          Cheers. Yeah, that’s not ideal….