Compare Bonus Saver Accounts

What are bonus saver accounts?

Bonus saver accounts are like a supercharged savings account that offer a base interest rate, plus an additional "bonus" rate when you meet specific conditions set by the bank.

Common requirements to earn a higher bonus rate include:

• Making a minimum monthly deposit (e.g., $1,000 per month)
• Maintaining a minimum balance
• Making a certain number of transactions through a linked account
• Avoiding withdrawals from the savings account.

How do bonus saver interest rates work?

Interest on bonus saver accounts is usually calculated daily. 

To earn the high bonus rate, you'll need to meet certain conditions. If you don't meet the conditions of the account you will then receive the standard or base interest rate. 

Types of bonus saver accounts

In Australia there are a few different types of bonus saver accounts depending on your savings situation. 

1. Introductory bonus rates

These savings accounts will offer a higher bonus interest rate for a limited time, usually 3-6 months. 

Example: Bank A offers a 3.50% interest rate for the first 4 months, which then reverts to a base rate of 1.50%. 

Pros:

• Great for short-term savings goals

• Can provide a significant boost to your savings in a short period

Cons:

• If the base rate is low, you may want to switch accounts once the introductory period ends

2. Conditional bonus rates

These accounts offer a higher rate when you meet ongoing conditions, such as regular deposits or linked account activity.

Example: Bank B offers a 0.50% base rate and a 2.00% bonus savings rate if you deposit $1,000 per month and make no withdrawals.

Pros:

• Encourages consistent saving habits

• Can provide long-term benefits if conditions are consistently met

Cons:

• Can be challenging to meet conditions every month

• Could result in lower interest if conditions are not met

3. Kids & youth bonus rates

Designed for young savers, these savings accounts often have more lenient conditions and potentially higher rates to encourage good financial habits early.

Example: Bank C offers a 3.00% rate for savers under 18 who deposit $10 per month and make no withdrawals.

Pros:

• Teaches children about saving and compound interest

• Often have more achievable bonus conditions

Cons:

• May have lower maximum balance limits

• Rates may decrease as the child gets older

Key features to look for in a bonus saver

• Competitive interest rates - If you are going to have to meet monthly conditions you’ll want to ensure that the rate being offered is hgh compared with standard base savings rates that don’t have conditions attached.   
• Achievable bonus rate conditions - if your savings habits or income means that you won’t be regularly able to meet the bonus rate conditions, you may be better off with a savings account with a high base rate.  
• No account fee - luckily most online savings accounts don’t have monthly fees
• Accessibility: Choose an account with user-friendly online and mobile banking options. This makes it easier to track your balance, transfer funds, and meet bonus conditions.
• Additional perks: Some banks offer extra benefits like financial planning tools or discounts on other banking products.

Strategies for maximising your savings balance

• Automate your savings: Set up automatic transfers to ensure you meet minimum deposit requirements.
• Use a Linked Transaction Account: If your bonus is tied to debit card usage, consider using the linked bank account for regular expenses.
• Keep an emergency fund elsewhere: To avoid withdrawals that could cost you the bonus rate, maintain a separate emergency fund.
• Balance accessibility and earnings: Decide whether you prefer the flexibility of easy access or the higher returns of stricter conditions.
• Compare savings accounts regularly: Review your account's performance and compare it with other savings accounts at least once a year or check out our Mozo Experts Choice Savings Account Awards page where we’ve done the comparisons for you. . 

Potential pitfalls to avoid with bonus savers

• Overlooking terms and conditions: Make sure you fully understand the requirements to earn the bonus savings rate.
• Chasing rates at the expense of financial health: Don't lock away money you might need for short-term expenses just to earn a higher rate.
• Neglecting to switch after introductory periods: Set reminders to reassess your account when introductory rates expire.