Compare what Australia's banks have on offer
It has been a tough few years for the savers amongst us. Savings Accounts and Term Deposits haven't provided much value. Towards the end of 2022, with the increases in the Reserve Bank cash rate, came good news for the long-suffering savers.
Across Australian banks, interest rates on transaction, savings and term deposit accounts are a varied mix of opportunity. The New Year is a great time to check what your bank offers and compare its rates with others. The other good news is that we have done much of the work for you by putting together a comparative fact sheet from 15 major Australian banks. View the full comparison in the .pdf below.
Many banks offer introductory bonus rates for the first few months after opening an account. Usually, these offers require a transaction account well as a savings account. It is essential that you read the fine print so that you meet the conditions for the bonus interest rates. In most cases, the interest rate is a mixture of standard variable and bonus rates.
A standard variable interest rate is tied to the bank's benchmark rate, which fluctuates depending on the Reserve Bank cash rate.
A bonus interest rate encourages new business and incentivises their customers to save more and withdraw less.
Some savings accounts require a specific dollar amount to be deposited at least two days before the month's end to receive the bonus interest. Others are offering higher interest rates for the first four months. Again, checking the terms and conditions of each savings and term deposit account is essential.
Here are a few things to add to your checklist when you compare different banks and accounts:
What is the minimum balance required to get the bonus rate?
What is the maximum credit for the offer?
Have I read and understood the terms and conditions I need to meet? Have I diaried them if needed?
Is this an introductory offer? How long will the offer last?
Which term deposit duration is best suited for my investment?
Is this bank covered by the Federal Government’s bank guarantee[1] (Financial Claims Scheme)?
If interest earnings likely impact your tax payable or any pension entitlements. In that case, I highly recommend speaking to your Accountant or Financial Advisor. All of the above information should be transparent on the product page. The comparison document below links to each product page for easy navigation.
Savings Account minimum balances vary within our comparison from $1,000 to $50,000. Term Deposit Account limits also range from $250,000 to $2,000,000.
Recently, my partner and I changed banks for both our self-managed super fund, term deposit and savings accounts as the rates we were getting were much lower than with another institution. If you have found the information provided useful, subscribe and get our regular updates.
IMPORTANT NOTE: The comparison below is a factual document. This blog and the .pdf are information only and do not constitute tax or financial advice. It is vital that you make your own inquiries. Also important to note that these rates are current as of Friday 6th January 2023. All rates quoted are per annum.
[1] The Financial Claims Scheme in Australia protects your deposit up to the value of $250,000. This cap applies per person and per Authorised Deposit-taking Institution.
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