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Bank Australia Savings Accounts

Name: Bank Australia Savings Accounts
Creator: Savvy
Published: 2022-05-23T13:52:00+09:30

Learn how to compare Bank Australia savings accounts with Savvy to find the best one for your money.

Written by , updated on August 8th, 2023

Undergoing a series of mergers and name changes over the years, Bank Australia is the result of the amalgamation of more than 70 credit unions and co-ops since 1957.

The country’s first customer-owned bank, they’re based out of Kew in Victoria’s inner suburbs. Today, Bank Australia has more than 180,000 customers, 400 staff and 16 branches across the country. They’re also progressive on issues such as climate change, vowing they never have – and never will – invest in fossil fuels, tobacco or gambling.

If you’re considering banking with Bank Australia, you can compare their various savings accounts with Savvy. Whether you’re eyeing off a term deposit, bonus saver or anything else, we can help take the headaches out of your decision-making.

*Please note that Savvy does not represent Bank Australia for their banking products. All product information and rates are correct as of May, 2022.

More about Bank Australia savings accounts

What savings products does Bank Australia offer customers?

Bank Australia offers a couple of core savings accounts suited to a wide range of customers. The way these savings accounts work differs depending on the fund you decide to open. Some allow you to earn bonus interest, park your money to earn a modest return or lock your money away for a rainy day.

If you choose to open a savings account with Bank Australia, you can manage it through a mobile app or internet banking. The mobile app allows you to check your balance, transfer funds and track your spending. You can nickname your accounts and add a widget to your phone’s home screen so you can always see your balances. If you have a linked everyday account, you can access a round up feature which rounds up purchases to the nearest dollar and deposits the change into your savings.

Bonus Saver

Earning bonus high interest is a key advantage of having a savings account and this account comes with bonus rates available to different balances. For example, you can earn a maximum bonus rate of 0.40% p.a. on balances up to $250,000. This rate is conditional on you making deposits of $100 or more per month and not dipping into your funds. Bonus Saver accounts are also available to joint account holders. If you don’t meet the conditions, you’ll earn a base rate of 0.01% p.a. The bonus rates on offer for other account balances include:

$0.01 to $250,000 – 0.40% p.a.
$250,000 to $500,000 – 0.30% p.a.
$500,000 to $1,000,000 – 0.20% p.a.
$1,000,000 or more – 0.10% p.a.

You’ll have online access to your account and be able to separate your savings into different ‘buckets’ to easily separate your funds based on different goals and access them when you need. These accounts come with no fees, but you will be charged $2.50 for withdrawing money at a branch.

Online Saver

This online saver account allows you to save and withdraw without charges or losing interest. These accounts come with two different interest rates. You can earn 0.15% p.a. if your balance is above $5,000 or 0.01% p.a. if your balance is under this amount.

These accounts come fee-free and you get full access online, allowing you to freely transfer between funds. You can also open a joint account with another person such as a partner or spouse.

mySaver

Tailored to people under the age of 25, the mySaver account rewards regular saving with a bonus high interest rate. The difference on this youth savings account is balances up to $50,000 earn a more competitive rate of 0.60% p.a. for depositing just $10 every month and not tapping into your funds. Bankwest says you must be aged 13 to 25 to open a mySaver account by yourself. Once you turn 25, the account switches to a Bonus Saver.

Commercial Saver

If you’re a sole trader, run a co-operative or run a small business, you can open a Commercial Saver. This type of business savings account allows you to set aside funds to earn modest interest while also having the power to access it when you need. Interest rates on these fee-free accounts are 0.10% p.a. on balances over $10,000.

Term deposit

Lock your money away over the long-term at a competitive fixed rate with a term deposit. Anyone over the age of 13 can open one of these accounts, which have minimum opening balances of a low $500. These accounts come with no fees, including staff-assisted withdrawals.

Interest rates on these term deposits increase the longer you set your money aside. Interest is paid either at maturity or monthly, ranging from terms of three months to three years. These rates and terms include:

0.25% p.a. fixed rate over a three-month term
0.90% p.a. fixed rate over a 12-month term
1.40% p.a. fixed rate over a 36-month term

Festive savings

A Christmas savings account allows you to deposit funds over January to October, then dip into them from November. With Bank Australia, your account is locked until November 1 and you’re free to spend your money until the end of January. You will earn a modest interest rate of 0.20% p.a. on your savings with this fee-free account. You'll have to submit an enquiry via the Bank Australia website to open this type of account.

How do I open a Bank Australia savings account?

You can open a Bank Australia account online, at a branch or over the phone. You must be an Australian permanent resident or on a relevant work visa to open an account by yourself, as well as being 13 years or older.

Applying online allows you to submit your details through a secure portal. You will need to provide two forms of photo ID, which can come in the form of a driver’s licence, a passport or a Medicare card.

Top tips for comparing savings accounts

Assess bonus and base rates

Don’t just look at the top rate you can earn on a savings account. If ever you can’t meet the bonus requirements, you’ll be earning the base interest rate, so it’s worth comparing these as well.

Compare with Savvy

Comparing with Savvy to find the best type of savings account allows you to weigh up different variables and options. You can also pick up handy tips on what to look out for on each account.

Know your savings goal

Everyone’s savings targets are different. Having a clear picture of why you’re saving will make it easier when choosing what type of savings account to open.

Check account requirements

Accounts will have various requirements you have to meet to qualify for bonus interest. Make sure you choose a set of conditions that are affordable and easy to manage.

Pros and cons of Bank Australia savings accounts

PROS

Promote ‘clean money’

Bank Australia promote “clean money”, which essentially means they don’t work with coal mines and gas and oil projects. Rather, your money is invested in clean energy transition and community projects.

Low opening balances

You can open term deposits and some savings accounts with very minimal opening deposits, making them affordable forms of investment.

Savings ‘buckets’

Bank Australia’s internet and mobile apps allow you to group your savings into “buckets” to easily monitor your separate savings targets.

CONS

Shorter term deposit lengths

Unlike most banks that offer limits of up to five years, Bank Australia caps the term lengths on term deposits at three years.

Fewer branches outside Victoria

Bank Australia has few branches outside of Victoria, meaning it could be hard to find a bricks-and-mortar outlet.

Low variable rates

The base interest rates on some accounts are very low, essentially negating the return you might receive on your funds if you don’t qualify for bonus interest.