Which banks offer savings accounts above 5%?

While other investment avenues may offer better returns (and more risk), for the average Aussie, a 5% savings account is the best return they would have seen from their bank in more than a decade.

It's a relatively safe rate of return too as all bank accounts are backed by the government's $250,000 guarantee.

Based on Savings.com.au’s market research, there are around 30 banks offering savings accounts with a rate of 5% or higher, with the potential for others to follow in the coming months.

The below list and overviews are not exhaustive.

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Important Information and Comparison Rate Warning

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Any CBA, NAB, Westpac or ANZ accounts above 5%?

Three of the four major banks - ANZ is the outlier - offer savings account rates of 5.00% p.a. or greater. The threshold was breached after November 2023's RBA cash rate increase.

• CBA NetBank Saver: 5-month introductory bonus rate.
• Westpac Life:
  • Grow the balance every month to attain the rate. A $5 monthly fee applies unless you deposit $2,000 a month; are a tertiary student or under 30; hold a pension or healthcare concession card; or you're new to Australia.
  • Under-30s can also attain an interest rate bonus if they also use the debit card 5 times in a month, grow the balance, and keep the balance under $30,000.
• NAB Reward Saver: Make one deposit and no withdrawals in a month.

Ongoing bonus rates

It’s important to note savings accounts offering 5.00% p.a. and above are typically provided by combining a base interest rate with an introductory rate or bonus rate that becomes applicable once specific conditions are met.

For example, a bank may offer a total savings account rate of 5.00% p.a. with a base interest rate of 3.75% p.a. and a bonus rate of 1.25% p.a. pending conditional approval. Certain criteria could include: 

• Depositing X amount per month
• Making X number of card transactions on a linked everyday account
• Growing the balance or not withdrawing any money
• Have a maximum balance: Double check if there's another rate above X amount, or if you go over that balance if the lower rate applies to the whole balance

Usually if you fail to meet the criteria in any given month, you get the base rate and potentially give up hundreds of dollars' worth of interest. However, that lasts for only one month - you can meet the criteria the next month and get the bonus interest.

Some savers might not mind jumping through a number of hoops to get the highest rate, while others might be willing to sacrifice some interest if it means they don't need to do a lot of admin.

Below are some popular market-leading banks' ongoing savings accounts of 5% p.a. or greater, and the conditions on how to get there.

ME Bank

• Exclusive to the new 'MeGO' app; deposit $2,000 a month into linked transaction account; grow balance every month; max balance $100,000.

ING

• Max balance $100,000; grow balance every month; deposit minimum $1,000 per month; and make five completed card transactions per month.

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AMP

• Deposit $1,000 per month; max balance $250,000.

Bendigo Bank

• Grow balance every month; max balance $100,000.

Great Southern Bank

• 'Home Saver': Deposit $2,000 each month from an external account; make 5 card transactions; max balance $100,000.

Move Bank

• Minimum deposit of $200 and no withdrawals in a calendar month; maximum balance of $25,000.

MyState Bank

• Deposit $20 a month and make 5 settled card transactions on the linked transaction account. Max balance $250,000.

RACQ Bank

• Bonus Saver: Deposit $100 or more per month without making any withdrawals.

Southern Cross Credit Union

• Star Saver: Link transaction account; increase balance by $200 a month; account fee waived if you're under 21, maintain a $3,000 balance, or have $30,000 worth of other products/deposits with the credit union; maximum balance $1.5 million.

People's Choice

• Dream Fund: Grow balance each month.

St George, Bank of Melbourne, BankSA

• The Westpac subsidiaries offer an Incentive Saver: Grow account balance by $50 a month; balance to not fall below $0.

There may be a 0.10% premium for signing up online.

Teachers Mutual Bank

• Deposit $1,000 per month; no withdrawals; no negative balance; max balance $5m

Also applies to subsidiaries Firefighters Mutual, Health Professionals, UniBank, and Hiver.

This account was closed to new customers in April 2024.

UBank

• Max balance $250,000; customers are required to have a ubank Spend account and deposit $200 per month (excluding internal transfers) into any Spend and Save accounts.

Virgin Money

• Aged 18+; Deposit $1,000 into a Boost Saver account; Make at least five purchases; Apply 'Lock Saver' feature for bonus 0.30%. Deposit conditions vary if aged 17 or under.

Age-limited rates

Bank of Queensland

• Future Saver: Available for those aged 14-35; max balance $50,000; deposit minimum $1,000 per month; and make five completed card transactions per month.
• Smart Saver: Available for those 36 and older; max balance $250,000; deposit minimum $1,000 per month; and make five completed card transactions per month

Great Southern Bank

• Goal Saver: Ages 18-24; Max balance $50k; Deposit $500 per month; 5 card transactions. 

Police Bank

• Available for those aged 18-29; Max balance of $30,000 across three accounts - $10,000 per account; 'full salary' to be credited to Police Bank. 

Westpac

• Available for those aged 18-29; Max balance of $30,000; grow savings every month; make 5 card transactions per month on the linked transaction account.

There are also a couple of banks offering interest rates over 5.00% p.a. for juniors under 18 with low balance caps.

Introductory rates

Quite a few banks offer competitive intro accounts. These can be handy if you are prepared to move funds every few months, and don't want to deal with deposit conditions.

Keep in mind some might only be available for new customers. This usually means you haven't had that product in a certain number of years, often 1-3 years. 

Macquarie Bank

• Four month fixed intro rate; reverts to lower ongoing rate thereafter; max balance $250,000.

Rabobank

• Four-month variable introductory rate, reverting to lower ongoing rate after this period; Max balance $250,000.

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Australian Unity Bank

• Easy Saver: Four-month fixed intro rate; max balance $250,000.

Auswide Bank

• Special offer three-month bonus intro rate, expires 30 September.

BCU

• 'Bonus Saver': Four-month variable intro rate.

Credit Union SA

• Four-month variable intro rate.

Easy Street

• Six-month variable intro rate.

HSBC

• Four-month intro rate for new customers or if last savings account was closed more than 12 months ago. Maximum balance $1 million.

IMB Bank

• Four-month fixed intro rate for new accounts; deposit $50 a month and make no withdrawals; maximum balance $1 million.

Newcastle Permanent

• Three month intro rate. Reverts to lower ongoing rate after. New customers only - must not have been an online savings account holder in the past 6 months. Must have linked transaction account, or be a home loan/other credit facility customer.

P&N Bank

• Hi Saver: Four-month variable intro rate.

St George, Bank of Melbourne, and BankSA

• The Westpac subsidiaries offer a three-month intro rate, called the Maxi Saver.

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