Savings accounts help your money grow faster by offering a higher interest rate than everyday transaction accounts. 

Get the highest interest on your savings

Savings accounts usually earn more interest than other accounts. They're usually online, and don't have a debit card, so it's not as easy to dip into your money.

Higher interest rate

The higher the interest rate, the faster your hard-earned savings will grow.

A competitive savings account will offer an interest rate of around 4% to 5% or more. A transaction account will usually have an interest rate between 0% and 1%.

This means your savings will grow faster in a savings account.

Bonus interest rates

Many savings accounts offer a bonus interest rate if you meet certain conditions. For example, if you make regular deposits of $500 per month, or keep a minimum balance of $5,000. Or if you're under 30 years of age.

Honeymoon interest rates

Some banks offer a higher interest rate for a short period of time, called a honeymoon interest rate. Always check what the interest rate will be after the honeymoon period ends.

No fees

The best option is a no-fee savings account — you don't want account fees to eat up your savings.

Linked accounts

To open a savings account with some providers, you will also need to open a linked transaction account. This makes it easier to transfer money between the accounts.

Government deposit guarantee

Savings accounts are a low-risk investment. They are protected by the Australian Government's Financial Claims Scheme (FCS). This guarantees to pay you up to $250,000 for savings deposits in the unlikely event your bank, credit union or building society fails. This guarantee applies per person and per institution.

To check if your savings are covered by the FCS, see the deposit checker on APRA's website.

Compare savings accounts

Before you open a savings account:

• Compare accounts from different providers so you can find the best one for you.
• Check that the provider is an authorised deposit-taking institution.

Compare these features:

Interest rate	what the interest rate is how often it's paid if it has a bonus or honeymoon interest rate, and what the conditions are
Account fee	monthly account fee
Minimum balance	if you need to keep a minimum balance
Maximum balance	the maximum you can save in your account
Linked account	if you need a linked transaction account with the same provider
Withdrawals	how often you can withdraw money
Regular deposits	if you need to make regular deposits, and how much

Review regularly for a better interest rate

Review your savings account regularly. Compare it to others on the market to make sure you're getting the best interest rate.