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24 savings accounts that pass the RBA’s test

RBA governor Philip Lowe says Aussies need to switch banks if they’re not getting a good deal.

A composite image of RBA governor Philip Lowe and Australian money to represent savings.
Aussies could see a serious boost to their savings if they switch to one of these accounts. (Source: Getty / AAP)

Reserve Bank (RBA) governor Philip Lowe gave Aussies a clear message when he spoke at the National Press Club on Wednesday - if you don’t have a good interest rate on your savings account, switch now.

But what is a good interest rate on a savings account? Lowe told Aussies if they were not getting 4.5 per cent or above on their deposit, “I encourage you to look around for a bank that will give that to you”.

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A total of 24 savings accounts pass the governor’s sniff test with rates of 4.5 per cent or above, according to the RateCity.com.au database, including:

  • 15 savings accounts for all adults

  • 5 savings accounts for young adults

  • 4 savings accounts for kids

  • Just one Big Four bank savings account meets this mark: Westpac’s Spend&Save offers 4.70 per cent, but only for people aged 18-24 years

However, after 10 RBA hikes, many savings accounts are still trailing a long way behind, including all four big banks’ online saver accounts, which have ongoing rates ranging from 1.10 per cent to 1.85 per cent.

RateCity research director Sally Tindall said Lowe set a very reasonable savings benchmark, and it was a shame the vast majority of accounts weren’t even close to clearing it.

“Just 24 accounts currently offer ongoing savings rates of 4.50 per cent or more from a total of 19 banks,” she said.

“If your cash is sitting in an account paying less than 4.5 per cent, take the governor’s advice and find a bank prepared to pay you an acceptable rate of interest.”

Tindall said keen savers could get ongoing rates of 5 per cent or more if they were willing to clear a few hurdles to qualify.

“Use the [Easter] break to check what rate you’re earning on your savings and measure it up against the competition,” Tindall said.

“Half an hour of research on Easter Monday could end up being a highly profitable use of your time.”

Highest ongoing savings rates on RateCity

Bank

Ongoing savings rate

Conditions

Balance cap for max rate

Australian Mutual - Young Saver Account - kids

5.50%

Ages 0-18yrs.

$50,000

Bank of Queensland - Future Saver - young adults

5.15%

Ages 14-35yrs. Deposit $1,000+ into linked bank account and make 5+ purchases mth (waived for under-18s)

$50,000

Great Southern Bank - Youth Esaver - kids

5.10%

Ages 0-18yrs.

$50,000

ING - Savings Maximiser

5.00%

Deposit $1,000+ into a linked bank account, make 5+ purchases/mth, grow savings balance each mth

$100,000

MOVE Bank - Growth Saver

5.00%

Deposit $200+ and make no withdrawals

$25,000

Virgin Money - Boost Saver

4.85%

Deposit $2000+ into a linked bank account (less for under-25s) and make 5+ purchases/mth. Provide 32 days’ notice to withdraw.

$250,000

Great Southern Bank - Goal Saver - young adults

4.85%

Ages 18-24 yrs. Deposit $500+ into a linked bank account, make 5+ purchases/mth

$50,000

Great Southern Bank - Home Saver

4.75%

Deposit $2,000+ into linked bank account and make 5+ purchases/mth

$100,000

Westpac - Spend and Save - young adults

4.70%

Ages 18-29 yrs. Grow balance and make 5+ purchases/mth

$30,000

Bank of Queensland - Smart Saver

4.60%

Ages over 35. Deposit $1,000+ into linked account and make 5+ purchases/mth

$250,000

ubank - Save

4.60%

Deposit $200+ every month into any linked account

$250,000

Great Southern Bank - Advantage Saver

4.60%

Grow the balance by $250 each month

$100,000 - $750,000

Peoples Choice - Young Saver Account - kids

4.55%

Ages 0–17. Deposit $5+ each month and no withdrawals

$30,000

St.George - Incentive Saver

4.50%

Deposit $50+/mth (less for under-21s) . Extra 0.10% for 3 mths if opening online

N/A

Bank of Melbourne - Incentive Saver

4.50%

Deposit $50+/mth (less for under-21s) . Extra 0.10% for 3 mths if opening online

N/A

BankSA - Incentive Saver

4.50%

Deposit $50+/mth (less for under-21s) . Extra 0.10% for 3 mths if opening online

N/A

MyState Bank - Bonus Saver

4.50%

Deposit $20+/mth into savings account and 5+ purchases on linked bank account

$250,000

First Option Bank - Savings+Bonus

4.50%

Deposit $100+/mth and no withdrawals

$250,000

G&C Mutual Bank - Bonus Saver

4.50%

Deposit $100+/mth and no withdrawals

N/A

RACQ Bank - Bonus Saver

4.50%

Deposit $100+/mth and no withdrawals

$99,999

People’s Choice - Dream Fund

4.50%

Grow balance each month

N/A

Police Bank - U30 Super Charge - young adults

4.50%

Ages 18-29 yrs. Deposit salary into a Police Bank account

$10,000

Bank of Heritage Isle - U30 Super Charge - young adults

4.50%

Ages 18-29 yrs. Deposit salary into a Police Bank account

$10,000

IMB - Reward Saver Kick Start - kids

4.50%

Under-18s and students up to 30: Deposit $20+ each month and make no withdrawals

$10,000

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