Best High Interest Savings Accounts for February - up to 5.45% p.a.

Your selected savings accounts

What is a savings account?

A high-interest savings account allows you to deposit cash and earn above-average interest rates. Among these are a few different types to choose from:

Introductory rate: Get a high interest rate for the first few months before reverting to a lower base savings rate.
Bonus rate: Bonus savings accounts require you to meet certain monthly conditions to earn the bonus. If you don’t meet these conditions, the interest rate will revert to a lower base rate.
Base or standard rate: The only condition for this kind of account is usually the balance limit. On average, standard rates are lower than the other two account types.

However, not all savings accounts are made equal. Our research team has crunched some numbers from all the accounts we track in the Mozo database and provided a table of the ‘average’ savings rates below.

Savings Account Type	Average rate (All Accounts)	Average rate Big 4
All Ongoing	3.49% p.a.	3.08% p.a.
Only Bonus	4.55% p.a.	4.55% p.a.
Only Introductory Rates	4.84% p.a.	4.45% p.a.
Only Unconditional Rates	1.40% p.a.	1.05% p.a.

Source: Mozo database, 1 March 2025

As illustrated, any savings account above a rate of 3.49% p.a. could be considered high interest currently. These numbers are important to keep in mind when reviewing savings accounts so you can find one of the best savings accounts for your situation.

How do I earn interest on my savings?

Most savings accounts calculate earned interest daily, based on your closing balance. It is then paid out monthly – this is known as compound interest. So, the more you deposit into your savings account to grow your balance and the less you withdraw, the more interest you earn on your money.

Generally speaking, savings account base interest rates are variable so they can fluctuate over time which is why it’s important to compare savings regularly. If you want to do some old school maths here’s how to calculate interest on a savings account or if time-saving is more your thing, check out our savings calculator.

Mozo Savings Report: How much the average Aussie saves

Our SOS Savings Report from last year found some interesting numbers. Here we have a breakdown on the average savings rates across Australian states.

Award-winning savings accounts

Every year, Mozo’s expert judges compare hundreds of savings accounts to find the best value accounts for different saver scenarios as part of the Mozo Experts Choice Awards. Only the top ranked accounts are awarded.

Winners in the high interest savings category include:

AMP Bank
Australian Unity
Bank of Melbourne
BankSA
Bendigo Bank
Great Southern Bank
ING
ME
MOVE Bank
RACQ Bank
St.George.

You can check out all the winners and categories at the Mozo Experts Choice Savings Awards page. We also highlight products in our comparison table that are award winners.

FAQs: savings accounts

What is the difference between a high interest and a bonus saver account?

High interest savings accounts are any account that has an above-average rate. Bonus saver accounts, meanwhile, are accounts where providers offer a higher interest rate as an extra incentive for fulfilling certain conditions.

What is the key difference between savings accounts & term deposits?

You may find yourself divided between investing your money in a savings account or a term deposit. Here are some key factors to consider:

Interest rates: With a term deposit the interest rate will be fixed for the term of your investment. Term deposits are available for 3 months to 5 years. With a savings account, the interest rate is a variable rate which means that it can change at any time.
Withdrawals: Term deposits have less flexibility as your interest rate and money are locked away for the fixed term. If you do make a withdrawal, penalties would apply. Alternatively, savings accounts can be withdrawn at any time, although some bonus rate accounts will revert to a lower base rate if account growth is a condition.
Bonus rates: With a savings account, you also have the option to earn higher bonus rates provided certain conditions are met. On the other hand, some term deposit providers offer a loyalty bonus if you roll your balance for a new term at maturity.
Minimum balance: Most term deposits will have a minimum balance, where savings accounts will have much lower (if any) balance requirement.

Read our guide on term deposits versus savings accounts if you'd like a more detailed explainer.

Can I get a debit or ATM card with a high interest savings account?

No, high interest savings accounts are usually only available online or via an app. But you can (or may even be required to) have a transaction account when you sign up which should come with a debit or ATM card.

Do I get taxed on interest earned in a savings account?

Yes, interest earned is considered the same as income and you’ll need to declare this on your annual tax return.

How much can I deposit into a savings account?

In general, most savings accounts don’t have a specific limit on how much you can deposit. However, providers usually have balance tiers that determine the interest rate earned. This means that once your balance goes over a certain amount, the interest rate will either drop or increase depending on the provider.

What's the difference between a transaction and a savings account?

Both savings and transaction accounts are options you have for keeping your money with a banking provider. Transaction or bank accounts are usually used for your everyday spending and as such these usually pay little or no interest. But they do come with a debit or ATM card.

Meanwhile, savings accounts are designed to help you reach your savings goals. They usually have higher interest rates and are accessed via online banking or via a banking app. Keep in mind that they do not come with an ATM card.

Is my money secure in a savings account?

Yes, the Australian government guarantees deposits of up to $250,000 with any one Authorised Deposit-taking Institution (ADIs) under the financial claims scheme. This means the government will reimburse any amount of $250,000 or under should the ADI (bank, credit union, etc.) fail.

If you’ve saved up more than $250,000, you’d need to keep smaller amounts of up to $250,000 in different banks for all your funds to be covered by the government's guarantee.

How to open a savings account

Opening up a savings account is a pretty simple process, although there are a couple of things you’ll want to keep in mind.

To start an account you’ll need to: