Online savings accounts avoid costly overheads by cutting out branches altogether. Online savers are, as the name suggests, based entirely online and usually accessed just via an app or online banking. If you don’t meet the conditions, you’ll be reverted to a much lower (sometimes 0 per cent) interest rate for that month. Using another of the lender’s products, such as a credit card.Keeping savings account balance above a certain amount or.Making minimal withdrawals (or no withdrawals) from your savings account each month.Depositing a certain amount of money to maintain a minimum balance in the account each month.This is a savings account where to earn the highest interest rate, you must meet the bank’s conditions, such as: The interest rate will then revert to a lower standard rate after a number of months, typically 3-6 months. Keep in mind these base rates are much lower than the rates offered in introductory periods or bonus interest earned from conditional savers.Īlso known as bonus savers, banks can offer bonus interest for the first few months of the loan. Sometimes called flexible accounts, a standard account offers an ongoing base rate, with no conditions or minimum deposits required to earn said interest.

The different types of savings accounts include:

The rate of interest is influenced by the Reserve Bank of Australia’s cash rate.Ī savings is different from a transaction account, which is your traditional, day-to-day bank account for everyday expenses. Generally, interest is calculated daily and paid monthly. A savings account is a type of bank account where you deposit your money so it can earn interest.

Best online savings account bonus