Bank interest

One of the most important things to consider before setting up a bank account is if it can help your money grow. And to answer that question, it’s essential to understand how much interest you can earn with a bank account, where can you get the highest rate of interest and whether you’ll need to pay any additional fees for high bank interest.

This guide answers all the questions you might have around bank interest so you can take a more informed decision about where to store your money. 

Bank Account Comparison Table - rates updated daily

Search promoted bank accounts below or do a full Mozo database search. Advertiser disclosure.
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    Glide Account

    account fee
    Payment Options
    interest rate
    $0.00
    Apple Pay, Google Pay, PayID, Samsung Pay, FitBit Pay, Garmin
    0% p.a.

    Unlimited free internet transactions. Super fast transfers & use Apple Pay, Google Pay and Samsung Pay. No account keeping fees or ATM fees.

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    Details
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    Go Account

    account fee
    Payment Options
    interest rate
    $0.00
    Apple Pay, Google Pay, Samsung Pay
    0% p.a.

    Enjoy earning Virgin Money points on purchases (conditions apply). Bundled with the Virgin Money Boost Saver. No Account fees. Available as a joint account.

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    Details
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    Mozo Experts Choice 2021
    Everyday Global Account

    account fee
    Payment Options
    interest rate
    $0.00
    Apple Pay, Google Pay, PayID
    0% p.a.

    No overseas ATM fees & up to 10 currencies in one account. Switch between currencies instantly 24/7 wherever you are using the mobile app.$100 Bonus for new HSBC customers and earn 2% cashback on tap and pay under $100 (T&Cs apply). Mozo's Experts Choice 2021 winner for Exceptional Everyday Account.

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    Details
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    Global Currency Account

    account fee
    Payment Options
    interest rate
    $0.00
    PayID, Samsung Pay
    0% p.a.

    Send and receive foreign currency with no Citi transfer fees. Consolidate your international bank accounts with account details for up to 10 currencies. Winner of Mozo Experts Choice Exceptional Everyday Account 2020 award^.

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    Details
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    Classic Banking Account

    with Standard Visa Debit Card

    account fee
    Payment Options
    interest rate
    $0.00
    Apple Pay, Google Pay, PayID, Samsung Pay
    0.01% p.a.

    No monthly account fees ever, with no conditions. Free use at over 7,000 ATMs around Australia. No overdrawn fees if you happen to go over your account balance. Open an account in less than 7 minutes.

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    Details

FAQs

How much interest can I earn with an everyday bank account?

Most Australian banks pay very little (0.01%) if any interest on everyday bank accounts. There are some financial providers that have higher interest rates of about of up to 2.25%. But to get a higher rate of interest, you may be required to maintain a minimum balance in your account or meet monthly deposit conditions. You can easily search for the highest bank interest on offer using Mozo’s free online tool.       

Is there an extra fee to get a high rate of interest?

The banks that offer a higher rate of interest on everyday transaction accounts don’t generally charge an additional fee for it. But like we mentioned above, since there are no free lunches, you will be required to have a certain minimum balance to be eligible for the bank interest.

Will I have to pay any other charges on my bank account?

Given that you can’t earn much interest by storing your money in an everyday bank account, you should make sure that you’re not paying any unnecessary charges such as monthly fees for maintaining the account or additional charges for withdrawing money from the ATM. You can easily find a number of bank accounts that come with a $0 account fee and a wide network of fee free ATMs using Mozo’s bank accounts comparison table.   

How often is bank interest calculated?

Bank account interest is generally calculated daily and paid monthly on the first calendar day of the month.

Is the interest I earn on my savings taxable?

Yes, you need to declare any interest that you receive from your bank account in your tax return.

How can I get a higher rate of interest?

To get a higher rate of interest you can open up a linked savings account. These accounts have interest rates of up to 3.50%. To get the most interest, keep the bulk of your money in the savings account and transfer to your bank account whenever you need to.

To shortlist the best savings account for your money, you should first ask yourself a few questions like whether you have a short or long term savings goal and if you can make minimum monthly deposits to the account. Depending on your priorities you could go for an intro rate saver, a bonus saver account or a long term savings account. For more information on this, you can read our detailed savings accounts guides.  

Where can I get the best bank account interest?

Whether you’re looking for the best bank interest with an everyday transaction account or a linked savings account, you can find the best interest rates on Mozo’s banking hub.

^See information about the Mozo Experts Choice Bank Account Awards

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