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 - last updated 20 August 2022
-
Choice
account fee
Payment Options
interest rate
$5.00$0 monthly account fee if you deposit min. $2,000 per month or are aged under 30.Apple, Pay, Google, Pay, Samsung, Pay, Fitbit, Pay, Garmin, Pay, Digital, Card0% p.a.$5 account fee waived when you deposit $2,000 each month (conditions apply). No account fee for customers under 30. Cardless cash feature. Apple, Google, Samsung Pay, Garmin, Fitbit and digital card pay. Partner discounts offered through Westpac App.
CompareCompareChoice
$5 account fee waived when you deposit $2,000 each month (conditions apply). No account fee for customers under 30. Cardless cash feature. Apple, Google, Samsung Pay, Garmin, Fitbit and digital card pay. Partner discounts offered through Westpac App.
- account fee
- $5.00$0 monthly account fee if you deposit min. $2,000 per month or are aged under 30.
- Payment Options
- Apple, Pay, Google, Pay, Samsung, Pay, Fitbit, Pay, Garmin, Pay, Digital, Card
- interest rate
- 0% p.a.
- ATM networks
- Westpac, St.George, BankSA, Bank of Melbourne
- What kind of card?
- Debit Mastercard
- Interest rate
- Balances from $0: 0.00% p.a.
- Fee free transactions
- Unlimited free transactions from internet, phone, network ATMs, EFTPOS, BPAY, branch deposits and withdrawals, and cheque.
Read our Mozo Review to learn more about the Choice
-
Everyday Options
account fee
Payment Options
interest rate
$0.00Apple Pay, Google Pay, PayID0.01% p.a.An easy, everyday banking account packed with flexible options to help you spend, budget & save better. $0 monthly account keeping fees & option to add up 9 sub-accounts.
CompareCompareEveryday Options
An easy, everyday banking account packed with flexible options to help you spend, budget & save better. $0 monthly account keeping fees & option to add up 9 sub-accounts.
- account fee
- $0.00
- Payment Options
- Apple Pay, Google Pay, PayID
- interest rate
- 0.01% p.a.
- ATM networks
- Suncorp
- What kind of card?
- Visa Debit
- Interest rate
- Balances from $0: 0.00% p.a.
Balances from $1: 0.01% p.a.
- Fee free transactions
- Unlimited free transactions from own-bank ATM, atmx ATM, Big 4 banks ATM, EFTPOS, counter withdrawals, counter deposits, phone and internet
Read our Mozo Review to learn more about the Everyday Options
-
Glide Account
account fee
Payment Options
interest rate
$0.00Apple Pay, Google Pay, PayID, Samsung Pay, FitBit Pay, Garmin0% p.a.Unlimited free internet transactions. Super fast transfers & use Apple Pay, Google Pay and Samsung Pay. No account keeping fees. Access Any Major Bank & MyState Bank ATM Fee-Free.
CompareCompareGlide Account
Unlimited free internet transactions. Super fast transfers & use Apple Pay, Google Pay and Samsung Pay. No account keeping fees. Access Any Major Bank & MyState Bank ATM Fee-Free.
- account fee
- $0.00
- Payment Options
- Apple Pay, Google Pay, PayID, Samsung Pay, FitBit Pay, Garmin
- interest rate
- 0% p.a.
- ATM networks
- MyState
- What kind of card?
- Visa Debit
- Interest rate
- Balances from $0: 0.00% p.a.
- Fee free transactions
- Unlimited free internet transactions.
Read our Mozo Review to learn more about the Glide Account
-
Transaction Account
account fee
Payment Options
interest rate
$0.00Apple Pay, Google Pay, PayID2.25% p.a.Earn 1.75% p.a. interest on all balances. No monthly account fees. Winner of a Mozo Experts Choice Australia's Best Bank 2022^.
CompareCompareTransaction Account
Earn 1.75% p.a. interest on all balances. No monthly account fees. Winner of a Mozo Experts Choice Australia's Best Bank 2022^.
- account fee
- $0.00
- Payment Options
- Apple Pay, Google Pay, PayID
- interest rate
- 2.25% p.a.
- ATM networks
- rediATM (other ATM network fees refunded)
- What kind of card?
- Debit Mastercard
- Interest rate
- Balances from $0: 2.25% p.a.
Balances from $250,000: 1.85% p.a.
Balances from $1,000,000: 1.15% p.a.
- Fee free transactions
- Unlimited free transactions from any Australian ATMs, EFTPOS, phone, internet, BPAY and direct debits
Read our Mozo Review to learn more about the Transaction Account
-
Classic Banking Account
account fee
Payment Options
interest rate
$0.00Apple Pay, Google Pay, PayID, Samsung Pay0.01% 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.
CompareCompareClassic Banking Account
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.
- account fee
- $0.00
- Payment Options
- Apple Pay, Google Pay, PayID, Samsung Pay
- interest rate
- 0.01% p.a.
- ATM networks
- NAB
- What kind of card?
- Visa Debit or
EFTPOS
- Interest rate
- Balances from $0: 0.01% p.a.
- Fee free transactions
- Unlimited free transactions from own-bank ATM, EFTPOS, counter withdrawals, counter deposits, phone, internet and Visa debit purchases
Read our Mozo Review to learn more about the Classic Banking Account
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
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.