School’s (almost) out! Here are 4 savings accounts for young adults

Family are on vacation and are happy because they have a savings account

With the end of year fast approaching, many young Aussies look forward to the school holidays or a much needed break from university. 

But any kind of sabbatical will usually mean dollars out of pocket, so it might be time to think about saving up. 

A savings account will be your first stop. 

Reasons to consider a savings account

Here are some reasons why opening up a savings account can be a good idea:

  • It’s an opportunity to establish your credit score. The benefit of having a good credit history is that it can potentially give you more flexibility when it comes to paying your bills on time.
  • A savings account means that you can have some funds set aside for an emergency, like a car repair.
  • It’s a way to improve your income as you gain interest over time.
  • If you have a big purchase that you’ve been eyeing, a savings account can help you work towards your goal.
  • It provides a secure place to keep your money.

How much interest might you earn with a good savings account?

At the time of writing, some providers are offering customers competitive interest rates on savings products that reach as high as 5.50% p.a.. 

This means that if your savings are $300 and you put away $100 each month over the course of 3 years, you could end up with $4,258 in your account. Of this amount, $358 is money earned in interest - not bad!  

So before you go riding those waves this summer, why not surf around for the best savings accounts out there.

High interest savings accounts for under 30s

IMB Bank - Reward Saver Kick Start Account
  • 5.25% p.a. bonus interest rate (T&Cs apply)
  • For savers between 13-30 years old
  • Low fees
Find out more

Enjoy an ongoing bonus rate of 5.25% p.a. with IMB Bank’s Reward Saver Kick Start Account when you save up to $1 million and meet conditions like depositing a minimum of $20 while making no withdrawals each calendar month. While this account is available for savers between 13-30 years old with a minimum opening deposit of $1, there are some eligibility requirements for customers between 18-30, such as being a trainee or apprentice. The fees may be low, but do keep in mind that your interest rate will revert to 0% p.a. if you don't meet the eligibility criteria to receive the bonus rate.

Bank Australia - mySaver
  • 4.75% p.a. bonus interest rate (balances up to $50,000)
  • $2.50 staff-assisted transaction fee
  • Unlimited free phone and internet transactions
Find out more

Able to commit $10 a month to your savings account while making no withdrawals? Then you may be eligible to receive the 4.75% p.a. bonus interest rate when you sign up with Bank Australia’s mySaver account and deposit up to $50,000. If you don’t meet the eligibility requirements for the bonus rate however, you will instead receive 0.10% p.a. in interest. This account is available for savers under 25, with an unlimited number of free phone and internet transactions. 

Newcastle Permanent - Smart Saver
  • 4.75% p.a. bonus interest rate for customers under 25
  • No account fees
  • 0% interest rate if conditions aren’t met
Find out more

Newcastle Permanent’s Smart Saver Account lets you make 2 free withdrawals per month, and has no account fees. To receive the bonus rate of 4.75% p.a., you’ll need to be a saver under 25, make no more than 2 withdrawals each month, and have a closing balance on the last day of every month that’s $10 higher than the opening balance on the first day of the month. There are no monthly account keeping costs and you can access free internet banking for your convenience. But bear in mind that if conditions aren’t met, you won’t be eligible to receive any interest for a particular month. 

Commonwealth Bank - Youthsaver
  • 4.75% p.a. bonus interest rate (for balances up to $50,000)
  • No account fees
  • 2.35% p.a. if conditions aren’t met
Find out more

Looking for a competitive interest rate from one of the big 4 banks? For the under 18s, Commonwealth Bank’s Youthsaver may be the savings account to consider. Take advantage of the 4.75% p.a. bonus variable interest rate when you save up to $50,000 (T&Cs apply). There are no monthly account fees or withdrawal fees, and you have access to a 24/7 online banking option, giving you plenty of flexibility when it comes to managing the account. Just remember to grow your balance as the interest rate will revert to 2.35% p.a. if conditions aren’t met for the bonus rate. 

Need more options? Have a look at some of the best savings accounts that our experts at Mozo have tracked this month, or compare savings accounts

^See information about the Mozo Experts Choice Savings Account Awards

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