2020 isn’t shaping up to be a great year for Aussie savers. Plummeting rates have left savings accounts across the board looking worse for wear, and term deposits haven’t been spared all that much either.
Back in January, the average savings account rate among providers in our database was 0.98% p.a. Meanwhile, the average 12-month term deposit rate sat at 1.45% p.a. Nowadays, those numbers have fallen to 0.68% p.a. and 0.98% p.a., respectively.
But that's not to say there aren’t worthwhile options out there, just that Australians will have to look a lot harder to find them. To make things a bit easier, we’ve compiled a few accounts that offer above average rates below.
3.00% p.a. interest rate (when conditions are met)
Dedicated savings buckets via Savings Goal feature
Available for customers aged 18-29
A new addition on the scene, the Westpac Life account offers two sets of bonus interest and a maximum interest rate of 3.00%. To be eligible for the Westpac Life variable interest, which currently includes a 0.40% standard variable base rate plus a 0.60% p.a. variable bonus rate, you’ll need to make a deposit to your Westpac Life account, grow your savings each month, and keep your account balance above $0. And to be eligible for the Spend&Save bonus variable interest, you'll need to make five eligible purchases with the debit card linked to your Choice account each month. Just keep in mind that the account is only for 18-29 year olds, and the 3.00% p.a. interest rate is available on balances up to $30,000.
Bank of Queensland Fast Track Saver Account
1.65% p.a. interest rate (when conditions are met)
2.50% p.a. interest rate available for 14-24 year olds (up to $10,000)
Anyone between the ages of 14 and 24 will appreciate the BOQ Fast Track Saver Account, which comes with a maximum rate of 2.50% p.a. This is available so long as your balance is under $10,000 and you deposit $200 or more into your account each month. For those above the age of 24, the interest rate of 1.65% p.a. is available if you deposit at least $1,000 into your linked Day2Day Plus Account each month. Both options typically require you to make five or more eligible transactions on your linked account to be eligible for the bonus interest, but this requirement has been paused until 31 August 2020.
Up Saver Account
1.60% p.a. interest rate (when conditions are met)
Optional round-up feature
If you love the convenience of mobile banking the Up Saver Account is well worth a look. As long as you make five successful card purchases each month through a linked Up Bank Everyday Account, you’ll be looking at a solid 1.60% p.a. interest rate on balances up to $50,000. There’s also an optional round up feature, which will round up any transactions to the nearest dollar and automatically deposit the difference into your savings account.
Judo Bank has made quite a name for itself in the past year by offering some of the most generous term deposit rates on the market. While you’ll be able to get rates up to 1.40% p.a. on shorter terms, lengthier investment options offer rates between 1.50% p.a. and 1.65% p.a. What’s more, you’ll receive a 0.10% loyalty bonus on top of the standard rate if you choose to reinvest your balance once it reaches maturity.
Bankwest Hero Saver
1.25% p.a. interest rate (when conditions are met)
Automatic payment feature
The Bankwest Hero Saver is a solid option for those who need a bit of motivation to get on top of their savings. As long as you deposit at least $200 per month and refrain from making any withdrawals, you’ll be looking at a variable rate of 1.25% p.a. But if you fail to meet either of those requirements, you’ll only receive 0.01% p.a. that month. While the account doesn't have any minimum balance requirements, the bonus rate is only available for deposits up to $250,000.
The Rabobank High interest Savings Account comes with one of the market's highest introductory interest rates at 2.00% p.a. (on balances up to $250,000), which is available for the first four months. All you'll need is a linked transaction account, which can be with any financial institution of your choosing. Just keep in mind that the rate reverts to 0.55% p.a. once those first four months are up, so it might be best to shop around if you’re intent on getting the best returns on your savings.