5 high interest savings accounts & term deposits (March 2023 review)

Savers are being rewarded to…save. Right now we’re getting a lot of bang for our buck, if we stash our cash in a savings account or term deposit.

So Kate & Owen thought it was high time we discussed the topic again and go through some of the more attractive rates available at the moment.

💡 Action step: Check your bank is covered by the Financial Claims Scheme (the FCS), by double checking it is an authorised deposit-taking institution (ADI) on this list. The FCS protects money held by an account holder with an ADI, up to a total value of $250,000.

4 tips for getting the most out of your savings

Hunting for a better bank account? With countless choices available when it comes to spending and savings accounts, it can be hard to settle on options that work for you.

• Use your savings and transactions accounts mindfully – where does your income go? Sometimes this affects bonus interest rates. Can you keep most of it in a savings account and slowly drip some into your spending account?
• Keep an eye on your savings rates – banks like to change things, especially with interest rates going every which way at the moment. This is a great opportunity to make some extra $$$ on your hard-earned savings. “Loyalty tax” usually kicks in after a year (banks love charging loyal, long-term customers more than new customers — go figure!).
• Beware of the enticing “honeymoon” rates – honeymoon rates suck you in with a great rate for a few months and then drop it right down (assuming you’ll forget). Either be prepared to switch again after a few months, or pick a lower rate that’ll be more consistent over the long term.
• Be mindful of hurdles on savings accounts, like ‘deposit $1,000 per month’ or ‘make 5 purchases to receive…’. Look at your usage over the past month and consider whether you would have met these hurdles required by your favourite bank account. You don’t want to make your life harder than it needs to be.