Interest Rates Comparison

Compare Interest Rates in Australia

Interest rates get quite a bad reputation in the media because everyone tends to focus on the Reserve Bank of Australia’s rate rises and how these will affect mortgage holders. However, what the media forgets is that when the RBA raises interest rates, the banks raise the interest rates on their savings accounts too – not just on their home loans.

Therefore, here you can compare the best interest rates available on high interest savings accounts, and find out how you can actually benefit from rate rises – after all, the future seems to have a few more in store.

How Interest Rates Are Calculated on High Interest Savings Accounts

The interest rate offered on your high interest savings account is the main determiner of how fast your savings will grow. The higher the interest rate offered, the more interest you will earn on your savings, because your returns at the end of the month are calculated by the percentage of your rate. For example, if your interest rate is 4.00%, your returns will be 4.00% of the balance of your account, and so at the end of the month you will have 4.00% more savings than you had at the beginning.

If you are comparing high interest savings accounts and wondering about the significance of having the interest calculated daily and paid monthly, it basically means you will earn more interest. When interest is calculated daily, it is calculated on compounding interest; your 4.00% interest is calculated on your balance on the first day of the month, on the second day of the month your 4.00% interest is calculated on your balance, plus the 4.00% interest from the previous day, and so on. Therefore, throughout the month you can be earning interest on your interest.

To calculate what the rate on their savings and term deposit accounts will be, most banks will base their rate on the RBA’s cash rate. Some banks will add a certain percentage to the standard rate for a promotional period, or lock in a rate several percentage points higher than the cash rate on a term deposit account.

Current Interest Rates on Savings Accounts

Interest rates are never static and while banks may advertise a fixed rate for a period of time, you should always check for the current interest rates of the day before you choose a high interest savings account.

Find the current interest rates for today here:

• ANZ savings accounts and term deposits.
• BankWest savings accounts and term deposits.
• HSBC savings accounts and term deposits.
• ING savings accounts and term deposits.
• Macquarie Bank savings accounts and term deposits.
• National Australia Bank savings accounts and term deposits.
• Rabobank savings accounts and term deposits.
• St George Bank savings accounts and term deposits.
• Suncorp Savings Accounts savings accounts and term deposits.
• Westpac savings accounts and term deposits.

How to Compare Interest Rates

When you are comparing interest rates on your savings or term deposit investments, you need to consider more than just the highest rate. Some interest rates will be fixed for a certain term of your investment and will return to a lower variable rate after an introductory period, while other interest rates will be subject to your use of the account.

To compare interest rates:

• Choose the interest rate which suits your savings goal. If a high introductory interest rate expires in four months’ time but you can save for your new TV or summer holiday before then, you can take advantage of the high rate and not worry about the lower standard rate.
• Compare promotional and introductory interest rates. If a savings account has a promotional rate, it is important you compare both this rate, and the account’s standard rate. While an account may have a higher initial rate, if you can find a higher standard rate on another account, you could be better off in the long term.
• Look for flexibility. Interest rates are predicted to keep going up for a while longer, which means that if you are locking in a term deposit account, look for an interest rate which is not likely to be exceeded by those of online savings accounts in the next few months. Or choose a term deposit account which lets you upgrade your interest rate, or withdraw for an early exit to a better investment option.

When you compare all of your savings and investment options right here, you can feel secure in the knowledge you have chosen the best interest rate for your savings. Once you have chosen the right savings product for your needs, you can sign up today by following our secure links.