Retired and Sitting on Savings? Here’s Where to Get the Best Interest

If you’ve worked hard and saved carefully over the years, it’s worth making sure that money is actually earning its keep. According to the latest analysis from consumer group CHOICE, high-interest savings accounts have finally started to live up to their name, with rates climbing back toward 6 per cent after languishing below 1 per cent in recent years.

For retirees with savings sitting in a low-interest account, that’s a meaningful difference – and a good prompt to check whether your money could be working harder for you elsewhere.

What CHOICE found

CHOICE regularly reviews the savings account market, filtering through the fine print to identify which banks offer genuinely competitive rates, and which come with conditions that are easy to miss. As of their most recent update (June 2026), here’s what stood out.

Best accounts with no strings attached

These accounts pay a strong rate without requiring you to make regular deposits, grow your balance, or use a linked debit card – ideal if you’d rather not juggle monthly conditions:

AMP Bank GO Save – 5.10% on balances up to $500,000 (requires a linked transaction account with AMP, no ongoing fees)

ANZ Plus Flex Saver – 5.10% on balances up to $5,000 (requires ANZ Plus app, no ongoing fees)

Easy Street Flex Saver – 5.05% on balances up to $3 million (a refundable $2 membership fee applies)

Bankwest Easy Saver – 5.00% on balances up to $250,000.99 (introductory rate of 5.75% for the first four months)

MyState Bank Hello Saver – 5.00% on balances up to $500,000 (introductory rate of 5.40% for the first four months)

Best accounts with bonus conditions

Other accounts offer even higher rates, but only if you meet monthly requirements such as growing your balance or making a set number of card purchases. These can pay off if you’re a disciplined saver, but be aware that missing a condition can see your rate drop dramatically – in some cases to as low as 0.01%. CHOICE notes some of the very top bonus rates are restricted to younger savers or specific professions, so always check the fine print applies to you before switching.

What the big four banks are offering

CHOICE points out that Australia’s major banks have traditionally lagged behind smaller providers, but are now offering genuinely competitive options – and unlike many smaller providers, they rarely cap the balance you can earn top rates on, which can suit those with larger sums to deposit:

CBA GoalSaver – 5.00% (requires a monthly deposit and growing balance)

NAB Reward Saver – 5.00% (requires a monthly deposit with no withdrawals)

Westpac Life – 5.00% (requires a monthly deposit and growing balance)

ANZ Plus Growth Saver – 5.10% (requires your balance to grow by at least $100 a month, on top of interest)

What this could mean for your savings

To put the difference in perspective, CHOICE calculated that if you had $1,000 in savings and deposited $100 a week for a year, you’d earn just $45 in an account paying 1.25% interest – but $181 to $209 in an account paying between 5.00% and 5.75%. For retirees with a larger nest egg sitting in an old, low-rate account, the gap can be substantial.

Tips for making the most of your savings

Before you rush to switch accounts, CHOICE and general financial guidance suggest a few things worth considering first:

1. Clear high-interest debt first. If you’re carrying a balance on a credit card or Buy Now Pay Later service, paying that off should generally take priority over chasing savings interest — the interest you’re paying on debt is almost always higher than what you’ll earn on savings.

2. Consider an offset account if you still have a mortgage. If you have an outstanding home loan, keeping your savings in a 100% offset account attached to that loan can be more valuable than a high-interest savings account, since it reduces the interest you pay on your mortgage rather than being taxed as income.

3. Watch for “teaser” rates. Many accounts advertise an attractive headline rate that only applies for the first three to six months before dropping to a much lower ongoing rate. These can still be useful for short-term savings, but don’t assume the advertised rate is permanent.

4. Check the conditions realistically. Some of the best rates require a minimum monthly deposit, a growing balance, or a set number of card transactions. If you’re retired and living off a relatively fixed income or pension, some of these conditions (like “growing your balance every month”) may be harder to consistently meet than they would be for someone still working — so read the fine print before switching.

5. Spread large sums across institutions. Savings in Australian banks, building societies and credit unions are protected up to $250,000 per person, per institution, under the Government’s Financial Claims Scheme. If you have savings above that amount, it may be worth spreading them across more than one authorised deposit-taking institution.

6. Think about how savings interact with the Age Pension. If you receive or are considering applying for the Age Pension, be aware that savings and investments are assessed under both the income and assets tests, and deemed to earn a certain rate of income regardless of what you’re actually paid. It’s worth checking with Services Australia or a financial adviser about how additional savings, or moving funds between accounts, could affect your pension entitlements.

7. Don’t chase rate alone. A slightly lower rate with no conditions and easy access to your funds may suit your circumstances better than a higher rate that requires monthly discipline you don’t want to maintain.

Rates and offers referenced in this article are current as of CHOICE’s most recent update (17 June 2026) and are subject to change. For the full comparison and methodology, visit choice.com.au. This article is general in nature and isn’t financial advice — consider speaking with a financial adviser about what’s right for your circumstances.