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:

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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.


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

  • +1 vote

    86400 are dropping rates.
    Effective Tuesday 13 October 2020, we’ll be adjusting our variable Save account interest rate from 1.60% p.a. to 1.35% p.a.

    • +3 votes

      Ubank are also dropping to 1.46%.

      The drop by 86400 is way too much to be considered reasonable. I do understand with most of the institutions that their margins are getting squeezed but I kind of feel a big drop like this is also taking advantage of the situation.

      •  

        just vote with your money

        it very easy to move money out

      • +1 vote

        Thanks for the info about ubank. Did not get any kind of notification from them. Don't they usually notify? And it has already happened, from their website. I have been told back in 2013 that ubank rate changes happen on Fridays - so I assume today is when the new rate starts if this is still true.

        At least 86400 gave some notice of the impending drop. They probably view UP as their competitor, so this drop will still put them ahead of UP. BTW anyone knows when UP will drop the rate? I only read it on a post here, but it hasn't happened yet, according to their website.

        Edit: Just checked, UP is dropping the rate on 1 Nov 2020. Thanks @aneil915 for where to look. No notification email from them either.

        • +1 vote

          Ubank Usave dropping from 1.46 to 1.4% effective from 1st December.
          (received email and confirmed on chat too)

          •  

            @rastoginimit: Thanks, good to know. Actually, I am glad they are not dropping that much, and it is not until 1 Dec.

  •  

    Up just dropped to 1.1%. I’m moving over to 86400.

    •  

      Make sure to collect a bit of cash when you signup with 86400.

      The direct debit out of the savings account has been excellent for limiting back and forth transfers between the pay and saver accounts.

  • +2 votes

    Consider the drop from all the neobank, Ubank bonus rate of 1.46% is pretty good

    •  

      I'm in the process of doing exactly this

    •  

      Macquarie Bank Savings is 1.35% (1.50% sign up first 4 months). But their transaction account has purchase protection insurance (theft and damage first 90 days), and they offer discounted gift cards. Pretty good combo of benefits.

    •  

      No osko/payid is absolutely pathetic though

      • +1 vote

        Yeah I was surprised by no Osko which sucks

      • -1 vote

        They have PayID now

        • -1 vote

          No, they have NPP for inbound transactions but that won’t work with other banks that use osko, which is basically all of them

          • -2 votes

            @jvanna: Seems like you were sleeping in class when this thing was introduced.

            The New Payments Platform (NPP for short) is the faster, simpler way to send and receive money, for participating financial institutions. Faster because payments are made in real time using a technology called Osko. Simpler because you can now use a PayID rather than having to remember lengthy BSB and account numbers.

            • +1 vote

              @rastoginimit: NPP and Osko are not the same thing - you can have NPP like ubank does without having Osko payments. Look through their website. If you send a payment to a ubank account from an ING account for example, using Osko, it will take the normal amount of business days and will not be instant.

              •  

                @jvanna: That's because UBank is not PayID/NPP/Osko enabled, yet.

                •  

                  @rastoginimit: NPP has 2 options -
                  Osko with PayID
                  Osko without PayID

                  If a bank doesn't have Osko, I don't think they are NPP enabled.
                  Macquarie might be using Osko for inbound but outbound transactions are not done via Osko yet.

                  Happy to be wrong.

                  •  

                    @rastoginimit: As far as I understand, Osko is just an overlay service upon the basic NPP infrastructure. A bank can still be NPP-enabled without Osko, by implementing some core parts of SCT (Single Credit Transfer).

                •  

                  @rastoginimit: Incorrect, as I said Osko/PayID/NPP are separate things: https://www.ubank.com.au/fastpayments?fbclid=IwAR00_j2wJfllI...

                  Note at the bottom of the page says: “Osko is something you’ve probably heard of, as some companies use the Osko Payment service provided by BPAY ®. An Osko Payment is made by or on behalf of a payer to a payee. UBank has not yet implemented Osko payments.”

                  So, Osko is a type of implementation for NPP, as far as I can tell banks can use PayID without Osko but this means that they won’t be able to transfer between other banks that do use Osko.

                  • +1 vote

                    @jvanna: Thanks for this link and now I understand where the gap is in what both of us are saying.

                    You are right in saying that NPP and Osko are not the same things.

                    UBank and Macquarie are NPP enabled for inbound transactions only.

                    For outbound transactions in NPP, Osko is the first (at this stage, Only) service through which NPP outbound transactions can be done.

        • +2 votes

          They have what's called SCT. I tried sending Instant Transfer from UP to Macquarie, but it failed because Macquarie doesn't have OSKO.
          I tried sending Instant Transfer from Macquarie to UP, and it was successful.

          I asked UP why is that so and they told me UP supports incoming SCT transfer but not outgoing. Outgoing is only on OSKO.

          So what I understand there are two or more rails on which Instant Transfer can happen. OSKO is one of them. Most banks at least bigger banks, support both.

      • +1 vote

        I was able to make fast payments inbound to ubank recently using BSB/Acct info. Don't think they support outbound fast payments yet - according to their FAQ. And I have not tried.

        •  

          That’s using NPP so it doesn’t work if you’re sending from a bank that uses osko

          •  

            @jvanna: Quite often, even if the sending bank has Osko and the receiving bank only supports SCT (Single Credit Transfer), you can still get instant transfer, especially if you are willing to use BSB/Acct for the transfer – which I am.

            I saw your statement above :

            If you send a payment to a ubank account from an ING account for example, using Osko, it will take the normal amount of business days and will not be instant.

            I use BSB/Acct to achieve immediate transfer from ING to Ubank.

            I have a feeling Ubank is doing staged rollout, and eventually will have Osko as well.

            • +1 vote

              @bluesky: I have also had instant transfers from ING to Ubank using BSB/Acct.

  •  

    ME Bank has dropped bonus rate to 1.25% + the normal 0.10% = 1.35% as of 21 October. A drop of 0.2%.

    •  

      Yeah :(

      Did ING drop theirs too? My app says "Current interest rate 1.4% p.a." and yes I am eligible for their highest interest rate. But the website still says 1.5%. I don't think the 1.4% that's showing in my app is just the bonus rate. Either way I'm moving from ME Bank back to ING.

      •  

        Did ING drop theirs too?

        The rate shown within the account and the interest accrued figure confirms 1.5% up to and including 22 Oct. And the website still shows 1.5% as you say. Hope they will keep this for a while.

  • +1 vote

    Just checking my reading and research is accurate…

    I see 1.35% for ME bank, 1.5% for Xinja (but no new accounts available at the moment), and 1.3% for Australian Unity.

    I've already used rabo, ing, citi, rams, so theyre burned.

    Is that the gist of it at the present time (knowing that whatever is true today may not be true tomorrow)?

    •  

      ING is $1.50, UBank is $1.46. Both good options.

      •  

        Thanks for the info. I should have closed my ING so I could start the clock on rejoining at some point.

        Looks like mystate for 1.5% is also a contender. Otherwise UBank here I come.

        • +1 vote

          Why do you need to start the clock on rejoining ING? 1.50% isn't an intro rate or are you looking at the sign up bonus that they do every now and then?

          •  

            @aneil915: You're right! And I was mistaken. Thanks for the info.

            I think I wrote off ING for the 100k max balance, then misremembered or just assumed there was a different reason. Might end up with some money in ING after all.

  •  

    UBank is droppping bonus rate to 1.00% from 1.06% from December 1. At 1.40%, they'd still be the best won't they?

    • -1 vote

      Yes, if you like to see your money lose its value.

    •  

      ING is still 1.50% but that could change any day

    •  

      Ubank made the decision to award the bonus rate across all savings accounts rather than limiting it to the one linked to your transaction account.

      ING just award it on the one linked savings account.

      I'd suspect ING will remain slightly more competitive than Bank on interest rates, but 1.5% won't last for long

  • -1 vote

    You guys should make arrangements to take all your funds out when this happens. The sooner you act the better.
    https://www.abc.net.au/news/2020-10-31/interest-rate-cut-to-...

  •  

    They are all dropping their interest rates.
    BoQ has reduced to 1.2%.
    Australian unity is down to 1.25%. And with them you forfeit all you interest if you make any withdrawal during the month. So today would be the day to withdraw the whole balance.
    Problem is that there is not much better on offer.
    Macquarie still has 1.35% but who knows for how long (apart welcome rate).
    The maximum you can get from HSBC is 0.95% (apart welcome rate).
    Is ETFs the only option?
    May be diversified fixed interest bonds or ETFs?

    •  

      People can get 6% to 12% APY with DYOR.

      • +1 vote

        Too old for cryptocurrency. Don't really understand it so I would not put money in it.

  • +1 vote

    Time to put the cash under the mattress….

    •  

      Or maybe upgrade my house or investment property - seems it would be better to go back into debt again…rather than have spare cash savings.

      • +1 vote

        That is exactly what the fed wants. Keep John and Jane spending as much as possible so that they have debt up to their eyeballs.

        •  

          Well, at least John and Jane have a fancy pool to go skinny dipping in…

  • +2 votes
  • +2 votes

    ING sent an email at 4pm on 10/11/2020 to announce that the interest rate is dropping from 1.5% to 1.35% on 11/11/2020.

    Not getting much notice of these drops. Very cheeky of the banks.

    • -2 votes

      ING is effectively telling their customers to take their money and bugger off. This is pretty much the behaviour we may expect from all the banks going forward.

      • +2 votes

        Luckily it is very easy to open up a bank account these days. So when these rate drops get announced it’s just a matter of moving to the next bank with the best interest. The banks know that some people will be too lazy to move or have a sense of loyalty and other people who are more informed will move without hesitation to take advantage of a better interest rate elsewhere. Forums like this one help us to spread the word so that we can make informed decisions with our money. The choice is yours but I move on quickly.

        •  

          1.35% is pretty much the best you can find these days apart from honeymoon bonus rates. There are a few slightly better, but only available for very small balances.
          ING itself is only up to $100,000. And you have to transfer in $2000/month and make 5 transaction on OE.

          • +2 votes

            @EveryLastCent: MyState is good and currently 1.5%.

            •  

              @squeeb: Thank you. Good to know.
              It is limited to $250k though. I suppose an extra $31.25/month compared to 1.35%.
              Plus have to do a $20 deposit every month and 5 transactions on Visa debit.
              Is it easy to set up online?

              •  

                @EveryLastCent: Yes, very easy. About 5 minutes of work.
                Visa card took exactly 2 weeks though.

                •  

                  @squeeb: @squeeb, you may already know this, but @EveryLastCent - this may not be an issue for you but worth noting.
                  If you want to transfer anything over $25K out, you have to fill a form and send it back. Just a little bit more hassle compared to other banks - if let's say they change the T&C or a big drop in rates and you want to transfer out everything in one shot. Also, not sure how long the wait is from returning the form and it gets processed - I haven't tried it out yet.

                  Between 10-25K transfer, you can call up and they will lift the limit on the spot. $10K is the default transfer out limit.

            • +1 vote

              @squeeb: Thinking of moving from ING to MyState. But how long until they drop their rate too?

              • +1 vote

                @abc: 3, 2, 1, zero.

              •  

                @abc: Dropped to 1.35% today. Still one of the best rates (that is not an introductory rate).

          •  

            @EveryLastCent: "You're eligible for our highest Savings Maximiser variable rate when you also have an Orange Everyday bank account and deposit your pay of $1,000 or more each month and also make 5+ card purchases that are settled " And you can withdraw the funds out again immediately. The 5 transactions can be done by Beemit and take a couple of minutes.

  • +2 votes

    ME Bank has further dropped bonus rate to 1.15% + the normal rate to 0.05% = 1.2% as of 11 November. A drop of 0.15%

    •  

      Thanks for the info. ME Bank requires 4 tap&go trans. When they restarted the tap requirement in Sep/Oct(?), I gave up using them since Vic was still in lockdown.
      Are they strict with regards to this? Do they close one eye and allow beemIt trans as well? If anyone knows, please share.

      • +1 vote

        ME also require a form to complete and email back if transferring over $20K.
        Four taps at Woolie/Coles self check out during the quiet time works.
        Haven't tried Beemit.

      • +1 vote

        I understand you cannot use beemit.

        • +1 vote

          Thanks.

  • +2 votes

    Macquarie have announced that from 13 November 2020, we’re changing our transaction and savings account interest rates.

    Your new variable interest rates

    Savings Accounts
    1.20% p.a. on all balances between $0 and $249,999.99
    0.95% p.a. on all balances between $250,000 and $999,999.99
    0.95% p.a. on all balances between $1,000,000 and above.
    Transaction Accounts
    We’ll pay 0.20% p.a. on all balances.

    Are you on a welcome rate?
    If you’re on a welcome rate, you’ll continue to earn the interest rate secured at the time of opening your account until the end of your four-month welcome period.

    •  

      Perhaps one of the better bank that actually pays what the promise. Keep fingers crossed for the 1.2% to remain but once Biden is sworn in it is unlikely to last.

  • +2 votes

    Yes even Macquarie reduced the interest rate now as squeeb reports..

    I expect My State to follow soon. Probably not worth going through the troubles of opening an account, transferring money in it and then have them drop the interest a few days later. Especially seen the fiddly process to get the money out again mentioned in previous comments..

    ING is still 1.35% but only up to $100k and with all the hoops to jump. Probably not worth the effort for about @12/month extra interest (before tax).

    So are ETFs like VDHG, VAS, VGS, VAF, VIF the only way to go?

  • +1 vote

    All Rabo Bank interest rates down by about 0.25%.
    Premium saver:
    Up to $250,000: 1.00%
    from $250,001 to $1,000,000 : 0.8%
    They are dropping like flies!!!
    Nowhere to hide…

  • +2 votes

    86400 from 1.35% to 1.2% on 20 November 2020.

    Our base rate will remain at 0.10% p.a. and the bonus rate will be 1.10% p.a. paid on balances up to $50,000 per Save account (to a total of $150,000 per customer). To get the bonus interest rate all you need to do is deposit $1,000+ per month into any of your Pay or Save accounts.

  • +1 vote
    Suggested Westpac Life Savings Account (18-29 yr old)

    Surprised no one mentioned this

    3% high interest on westpac saver account (for savings up to $30000 and 18-29yo) with certain conditions (monthly balance must be higher than previous and must make 5 purchases - works with beem it - within the month using the linked card)

    • +1 vote

      most here would be over 29

      •  

        I wonder how many ozb'rs are under 20 like me

        •  

          In that case make use of it but READ all fine prints. Wespac has plenty of traps and zero mercy! Still it makes sense to save from a young age!

          • +1 vote

            @payless69: yea haha the ozb'rs on the thread usually helps out with pointing out any traps. I've actually been using this savings account for a few months and been getting a solid amount of interest, which is nice

    •  

      Note the account keeping fees on the linked Westpac Choice transaction account if you don't deposit $2000/month (unless you qualify for a fee waiver, e.g. student).

  • +1 vote

    The BOQ fast track starter account for under 25s has had its interest rate raised to 3% (presumably to compete with the Westpac offer) while the regular fast track saver is now at a disgusting 1.05%. 3% rate is limited to the first $10,000 in the account compared to $30,000 for Westpac

  •  

    ING

    • in addition to the Current Eligibility Criteria, from 1 March 2021 you must also ensure that the balance of your nominated Savings Maximiser account at the end of the month (excluding interest) is higher than it was at the end of the previous month.
    • +2 votes

      Well, that's a shame. It's time to take all your funds out.

      •  

        haha damn. I just moved all mine from Ubank today and yesterday.

        • +2 votes

          That is what normally happens. You open the account, move the money and then a few days later they drop the rates lower than where you had the money before…

    •  

      So no bonus interest if you don't increase your balance.
      Very annoying and to me, it feels like too much of a pain to try to maintain (even if its trying to limit it to 1 cent per month increase).

      This motivates me to find another bank with a reasonable rate that doesn't require all this effort.

      •  

        After all the crap they've changed over the last few years this was the last straw for me (and apparently quite a few others on FB). The worst part is they phrase it like they are doing us all a favour.
        It'll take a refurn of the pay-wave rebate and a decent interest rate to get me back.

        What is the best alternative at the moment?

        • +2 votes

          MY STATE BANK Bonus Saver also 1.35% (since 1 December). Also 5 settled VISA Debit card transactions each month (can be beemit) and deposit $20 or more. Has OSKO and you can make withdrawals.

        •  

          ya last straw for me as well, decided to ditch them as they are making it troublesome just to maintain

  • -1 vote

    Maybe we should add 'ETF' to the poll. Not a bank, I know, but quickly becoming a viable option.

  • +3 votes

    USaver Uspend bonus rate has decreased to 1.10% from today!

  • +1 vote

    Xinja is gone