Saving Accounts

My money in the bank should be growing, and the higher the interest rates, the faster it grows.

SAVINGS ACCOUNTS

The average Aussie has about $45,000 saved up (Source: money.com.au). Choosing a savings account with the highest interest rate of 5.5% instead of the lowest at 4.0% could mean an extra $675 a year. It’s crucial to pay more attention to my choice of savings account.

TRANSACTION ACCOUNTS

It is important to know the difference between a savings account and a transaction account. While banks offer both, savings accounts earn interest, but transaction accounts usually don’t. Banks LOVE it when customers stash their cash in transaction accounts instead of savings accounts because they don’t have to pay customers for holding onto their money! If the average Aussie with $45,000 put their money in a transaction account instead of a savings account, they could be missing out on $2,475 in interest each year.

With a quick Google search, I can find several comparison websites for saving accounts.

I personally found this savings accounts leaderboard to be super handy and it does not run ads like the comparison websites do. Big thanks to the community behind this for creating and keeping this list up-to-date!

When comparing the accounts, I don't just look for the highest interest rates. I also consider other things like:

• Eligibility criteria (e.g. regular deposits, age, balance caps, withdrawal restrictions, etc.)

• My preferred financial institution

• Access to mobile apps or branches

According to the leaderboard, some of the savings accounts with the highest interest rates in December 2024 are: