Pensioner Savings Accounts
Get the best savings account for your golden years by comparing pensioner funds with Savvy.
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Are you looking to grow your savings? Compare a wide range of savings accounts with Savvy so you find the best deal in Australia and the highest interest rate to help grow your savings.
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Compare pensioner savings accounts
Living out your twilight years should be hassle-free, whether it involves spending more time with the grandkids or doing a spot of travelling. To make your retirement savings go further, it’s important to find the best savings account for your money.
Banks offer flexible accounts tailored to pensioners and comparing with Savvy can help you find one that works best for you. Learn how to find an account with the best mix of variables by reading our in-depth guide.
What is a pensioner savings account?
Tailored to senior Australians who have hit retirement age, a pensioner savings account is effectively a hybrid of a savings and transaction account. A select few financial institutions offer these accounts, which are only available to those receiving a government pension. The key difference with these accounts is that while a savings account encourages you to save and not withdraw funds, this account allows you to spend freely without it impacting your interest rate.
When you’re comparing with Savvy to find the best place to house your funds, it’s also worth considering regular savings accounts. These can be more suitable if you’re not earning a pension once you retire, such as if you have a significant amount in savings or are continuing to earn an income via super or investments. You won’t get the luxury of easy access to your money, but they will enable you to earn much higher interest on your money.
While these options are geared towards retirees, some institutions still offer retirement savings accounts for those wanting to build a nest egg while they are working. These accounts are low-risk alternatives to super funds, with their performance determined by interest rates rather than the stock market. These accounts, also called superannuation savings accounts, typically have a much lower rate of return than a super fund and aren’t offered by many banks.
What variables should I compare on pensioner savings accounts?
Finding the best savings account for your hard-earned dollars will come down to comparing individual variables, which you can do right here with Savvy. Pensioner savings accounts have a range of unique factors, including:
Interest rates
Savings growth comes down to the interest rate you receive on your account. The higher your rate, the faster your balance will grow. While interest rates tend to vary across pensioner savings accounts, shopping around will allow you to sniff out the best one on the market.
Unlimited access
One of the benefits of this type of account is that you can access your money whenever and however you like. Tapping into your funds won’t impact your interest rate, unlike savings accounts. That being said, it’s still worth comparing between funds to double-check the one you want to open doesn’t have any withdrawal limits in place.
How interest is calculated
Tiered interest is a staple of these types of accounts. This is a little different from the way interest is calculated on a savings account. Tiered interest essentially means the more you have in your account, the higher your interest rate. For example, if your balance was under $10,000, a bank may pay interest at 0.05% p.a. However, if your balance was more than $249,000, you could earn 0.25% p.a. Different banks will have different benchmarks and accompanying rates, so it’s important to compare to find the best set. You can also use Savvy’s online budget planner to help you reach a savings target.
Fees
Pensioner savings accounts generally come with no monthly fees. As such, you’re saving up to $5 per month on account keeping costs. However, because they operate in part as a bank account, you can be charged overdraw fees up to $15. Run your eyes over these hidden costs and try to find the cheapest account.
Extra features
Because these savings accounts come with the added benefit of allowing you to spend, they come with a range of special features. These include Apple Pay, the ability to temporarily lock your card if you lose it and 24/7 fraud monitoring. You’ll also be able to pay bills and withdraw money from select ATMs using your linked debit card.
Types of savings account
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Pros and cons of pensioner savings accounts
PROS
Easy access to your money
You can tap into your funds wherever you are using online, mobile or telephone banking. These accounts don’t have withdrawal restrictions or monthly requirements, so you’re free to access your money 24/7.
Ability to earn interest
You can spend and still earn a return on your money. That’s because, unlike standard savings accounts, spending your money using this type of fund doesn’t come at the cost of your interest rate. You can calculate the interest you could earn using Savvy’s savings calculator.
No monthly fees
These accounts are typically fee-free, meaning you avoid having to pay the steep monthly fees, such as $5 charges for account keeping, which usually come with savings accounts.
Access to a debit card
There’s no need to set up an adjoining linked bank account; you get direct access to your cash with a debit card. You’re also able to make purchases and withdraw money using your debit card without the hassle of additional fees.
CONS
No bonus interest
You won’t be able to earn bonus high interest with this account, potentially costing you a higher rate of return.
Harder to find
Pensioner savings accounts tend to be as rare as hen’s teeth, with not all institutions offering them. While they may have some benefits, your options when shopping around can be restrictive.
Frequently asked pensioner savings account questions
Our savings calculators
Use our savings calculator to help you calculate how much you could save over a set timeframe based on different deposit sizes and frequencies.
Your savings can put in work for you. Crunch the numbers to see how much interest you could earn on top of your interest by compounding daily, monthly and annually.
It's crucial to have a clear idea of your monthly household budget to see where your money is going and where it could potentially be better spent.
If you're applying for a loan or need to know what your salary is for your tax return, you can use our annualisation calculator to work out what you'll earn this financial year.
Setting savings goals is important. With this tool, you can work out how much you'll need to deposit to reach your financial aims over a set timeframe.
Just as important as knowing how much to deposit is working out how long it'll take to reach your goals. This savings goal calculator can help you do just that.
