Aussies could potentially save an extra $1,000 a year by switching their savings account, and they don’t need to jump through a single hoop.
Unity Bank is now offering the highest ongoing savings rate of 5 per cent with its new MoneyMax account, with no conditions required.
RateCity research found someone with $25,000 in Unity Bank’s MoneyMAX account could potentially earn $1,281 in interest over a year.
In comparison, if they stuck with the lowest of the Big Four banks’ ongoing savings rate of 1.10 per cent, they would only earn $277 in a year - a $1,005 difference.
RateCity research director Sally Tindall said savers could finally get an ongoing rate of 5 per cent without having to meet any conditions.
“Those prepared to do what it takes to get the highest rate possible are likely to look beyond this account but, for some savers wanting a hassle free option, Unity Bank’s new savings account delivers a competitive rate,” Tindall said.
“Savings accounts are often littered with fine print, designed to catch complacent savers out. Freeing themselves from these shackles will help some people earn more interest on an ongoing basis.”
Top savings accounts
The top ongoing savings rate in the market is from ME Bank at 5.65 per cent, but customers need to deposit $2,000 into a linked account and grow their savings balance each month to qualify for this rate.
If they fail to meet these requirements, their interest rate drops to a base rate of 0.55 per cent for the month.
“If you’re looking for your next savings account, think about what suits your finances, your lifestyle and, to an extent, your personality, and find an account that suits all three,” Tindall said.
“It’s important to remember banks need funds to help support their home loan books, which means your money is in demand.”
Max rate (base rate)
Max balance for max rate
ME Bank HomeMe
Deposit $2k+ into linked account and grow savings balance each month
ING Savings Maximiser
Deposit $1k+ into linked account, make 5 transactions and grow savings balance each month
BOQ Future Saver (ages 14-35)
Deposit $1k+ into linked account, make 5 transactions each month (waived for ages 14-17)
MOVE Bank Growth Saver
Deposit $200 and make no withdrawals each month
Teachers Mutual Bank, Firefighters Mutual Bank, Health Professionals Bank, Unibank Target Saver
Deposit $1k+, make no withdrawals and maintain positive balance