ME Bank Savings Accounts
Learn more about ME Bank’s savings accounts and compare them with Savvy to get the best option.
Fact checked
Founded in 1994, ME Bank started as a home loan provider to industry super fund members. This was because the Australian Council of Trade Unions (ACTU) believed its members deserved an alternative to the big banks.
Over later years, the Melbourne financial institution would secure a banking licence and begin offering banking and savings products. Now a subsidiary of the Bank of Queensland, the digital-only bank has more than 550,00 customers and 1,800 employees.
If you’re considering a ME Bank savings account, compare with Savvy to find the right one for you. Comparing with us lets you take the guesswork out of finding a fund that will grow your nest egg.
*Please note that Savvy does not represent ME Bank for their banking products. All product information and rates are correct as of May, 2022.
More about ME Bank savings accounts
What savings products does ME Bank offer customers?
ME Bank has a range of personal and business savings products. Consider your options with Savvy and find the one that is right for you. Your options include:
Online Savings Account
ME Bank’s online saver earns you bonus interest for meeting several different account criteria. This account comes with a base rate of 0.05% p.a. and a bonus high interest rate of 0.75% p.a. (equalling a total of 0.80% p.a.). To qualify for bonus interest, you must link your savings account to a ME Bank Everyday Transaction Account. Other requirements include making at least four monthly tap & go purchases with your transaction account’s debit card and having a savings balance under $250,000. The same conditions apply if you have a joint savings account with two debit cards.
If you have the ME mobile app, you can set up multiple savings accounts to track various targets. You’re able to transfer and withdraw from your savings as you see fit, as long as you meet the bonus interest conditions. To open one of these accounts, you must be at least 16 years old.
Term deposit
A low-cost and low-risk way to invest long-term, ME Bank’s term deposit lets you earn a competitive fixed rate for locking money away for a set term. Term lengths range from one month to five years. These term deposits come without set-up or ongoing fees and require a minimum investment of $5,000 upfront.
Term deposits differ from savings accounts because they make it harder to access your money. You’ll only be able to withdraw or deposit at the start or end of your term. If you do want to alter your terms or access your money, you must provide your bank with 31 days' notice.
Some of the rates for term deposits paying interest monthly include:
- 0.40% p.a. – three months
- 1.05% p.a. – six months
- 1.20% p.a. – nine months
- 1.95% p.a. – 12 to 23 months
- 2.70% p.a. – 36 to 60 months
However, you can earn high interest rates above 2.70% p.a. if you decide on a less frequent interest payment schedule, such as annually. ME Bank will write to you ten working days before your term deposit is scheduled to mature to confirm your intentions. If you don’t respond within two working days, the bank will reinvest your money, with no guarantee you’ll secure the same fixed rate.
Business savings account
Tailored to sole traders and small business owners, ME Bank’s business savings account lets you earn interest on money which isn’t essential to your day-to-day operations. You’ll earn a variable rate of 0.35% p.a. on your money, with no minimum deposit or balance requirements. You can access your money by transferring it to a linked everyday business account. You can open a joint business savings account with more than two signatories.
To open a business savings account, you must be one of the following:
- A sole trader
- An unregulated trust
- An association
- A self-managed super fund (SMSF)
- A small business
How do I open a ME Bank savings account?
You can open a term deposit or online savings account via ME Bank’s website. This is a relatively straightforward process which involves filling out an online form. You’ll need to provide some details such as your name, date of birth, address and contact details, as well as your tax file number (TFN).
You will also need to provide two forms of identification. One of these needs to be photo ID. Eligible forms of identification include:
- A driver’s licence
- An Australian or foreign-issued passport
- A Medicare card
- A birth certificate
- A utility bill
- A government-issued proof of age card
If you want to open a business savings account, you will have to fill out a PDF application form and email it to the bank for approval. A representative will contact you once your application has been given the green light and you’ll be free to open your account.
Top tips for comparing savings accounts
Compare with Savvy
Doing your homework to find the right savings account can seem like a headache, but it doesn’t have to be. Comparing with Savvy allows you to get a clear idea of how accounts differ and which one gives you the best bang for your buck.
Go for affordable bonus interest conditions
Earning bonus interest can fast-track the achievement of your savings target, but it’s important to find a set of conditions you can easily manage. Choosing an affordable set of requirements will ensure you never miss out on that extra interest.
Check the base interest rates
Finding a strong base interest rate will be the key to your savings success. If you ever have a month where you miss out on bonus interest, you’ll need a competitive standard rate to fall back on.
Consider your savings goal
How and why you’re saving will dictate what type of account you choose. For example, if you’re saving in the short-term, you may be better off with an online savings account with a high introductory rate rather than a term deposit. You can use Savvy’s budget planner calculator to work out how much you can afford to put away to reach your target.
Pros and cons of ME Bank savings accounts
PROS
Competitive term deposit rates
The interest rate options available on ME Bank’s term deposit are some of the strongest on the market. Depending on the length of time you choose, some of these rates are double or triple that of competitors.
No account keeping fees
Savings accounts are generally low-cost and ME Bank is no exception. The financial institution doesn’t charge ongoing costs on any of its savings products.
Easy bonus interest requirements
Unlike some other banks which have strict conditions on bonus interest, this online savings account pays you the extra percentage by simply spending on your linked account.
CONS
Limited options
If you’re looking for a place to store your cash, your options will be rather limited, as ME Bank only offers three types of savings accounts.
Higher age restrictions
You have to be over 16 years old to open a savings account by yourself with this bank, which is a higher age limit than some competing institutions.
Low bonus interest rates
While you will be able to earn bonus interest on an online saver, the interest rates are lower compared to other institutions.
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