Best Savings Accounts for Students & Teenagers in Australia | December 2022
Updated: Nov 23, 2022
There’s really no hiding it, as history will tell us, students don’t have the best reputation when it comes to handling money.
Who can blame them? Little to no income, high study costs, silly purchases, financially draining social-life, immaturity, the list goes on...
But, with all that being said, it appears as though the tide is actually beginning to turn.
Us ‘Generation Z’ers, although most of us are students at this point in time, are on-track to outperform our predecessors in almost all areas related to personal finance, career direction and goal setting.
And while there are a variety of factors contributing to this, our technological prowess and ability to find answers quickly appears to be at the centre of it.
So that brings us to this article, here, I will be doing my part to contribute to the accessibility of money management information and today we are talking about Savings Accounts!
Now, even though savings accounts alone won’t make you rich. They are an integral part of pretty much everyone’s money management strategy so it is important you choose the right one!
But, that is definitely easier said than done! Considering just how many savings accounts are offered in Australia today, it can be hard to know which is best.
So I’ve done the research for you and compiled what I believe to be the Best Savings Accounts for Students in Australia.
To make things even easier for you, I’ve made sure that each account meets the following criteria:
The account needs to be protected by the Australian Financial Claims Scheme;
The account needs to be available to students living anywhere in Australia;
The account cannot have any unreasonable fees.
So, let’s get into the list!
*Note: These accounts are listed in no specific order and each account offers varying features and benefits that may or may not be of interest to you. The information shown below is true at the time of writing.
What does this account offer? (Features)
Age requirement: +13 years
Base interest rate: 0.05%
Bonus interest rate: 3.80%
Bonus interest criteria: Deposit at least $20 a month & make 5 or more Visa Debit card transactions from your linked MyState Glide Account.
Maximum interest rate: 3.85% (Applicable on balances up to $250,000)
Withdrawals allowed when earning bonus interest: Yes
What’s so good about this account? (Benefits)
After doing the research and reviewing hundreds of Savings Accounts, it is hard to look passed MyState Bank's Bonus Saver. Many of the other comparison websites are quite fond of the account and after looking into it myself, this is no surprise. With an on-going maximum interest rate of 3.85%, this account is positioned quite competitively in today's market. And to make things even better for MyState Bank, when their comparatively high interest rate is couple with a minimum deposit of only $20 and a minimum age requirement of only 13, it makes for a very solid savings account for younger Australians.
What's the catch? (Disadvantages)
Like almost all savings accounts today, if you are looking to earn more than a pitiful 0.1%, you are going to need to qualify for the bonus interest rate. And like many other accounts, the Bonus Saver Account requires you to open, link, and make 5 or more Visa Debit transaction (per month) on one of the their transaction accounts if you want to qualify for the extra interest.
What does this account offer? (Features)
Age requirement: 14-24 years
Base interest rate: 0.05%
Bonus interest rate: 2.70%
Bonus interest criteria: Deposit at least $200 a month & make 5 or more eligible transactions from your linked Day2Day Plus Account.
Maximum interest rate: 2.75% (applicable on balances up to $10,000. Maximum interest rate of 2.25% on balances between $10,000.01 and $250,000)
Withdrawals allowed when earning bonus interest: Yes
What’s so good about this account? (Benefits)
Not only can you earn a maximum interest rate of 2.75% but you are also not restricted when it comes to withdrawals. This means, as long as you meet the bonus interest criteria, you can withdrawal as much money as you like and not have it affect your eligibility for the higher rate.
What's the catch? (Disadvantages)
To start, the 2.75% interest is only applicable on balances up to $10,000. Balances from $10,000.01 to $250,000 will be eligible to receive a maximum interest rate of 2.25%, which isn't too bad but no the highest. In addition to this, the bonus interest criteria for this account has a minimum deposit of $200 which isn't too bad, generally speaking, but for some students it may be a stretch.
Earn $30 BONUS with referral code: XMGVSTE
What does this account offer? (Features)
Age requirement: +18 years
Base interest rate: 0.1%
Bonus interest rate: 3.75%
Bonus interest criteria: Deposit at least $200 a month & link your Save Account with a Spend Transaction Account.
Maximum interest rate: 3.85% (Applicable to balances up to $250,000)
Withdrawals allowed when earning bonus interest: Yes
So, what’s so good about this account? (Benefits)
UBank’s Save Account currently offers a $30 Bonus to anyone who signs up using the referral code: XMGVSTE and allows you to earn the joint highest interest rate on this list, even if your transaction account is with another bank and this is amazing for multiple reasons!
Let me explain...
Even though you do need to create a Spend Transaction Account to be eligible for the bonus interest, after the account is created, you are not required to continually use it in order to be eligible for the bonus rate.
This is unique because many banks, including both of the other Savings Accounts on this list, require that you make 5 or more transaction per month on a linked transaction account.
Without these requirements, you are able to keep your existing transaction account or, if you don’t yet have a transaction account, create one with a separate bank, giving you two entirely separate banks to keep your savings and everyday spending money with and this is great for 2 main reasons:
1. You have access to the everyday banking benefits of the bigger banks without having to settle for their less than appealing savings interest.
As an example, you could have your transaction account with NAB and savings with UBank. This would mean you could enjoy ATM/Branch access all over Australia, advanced features on your mobile banking app and instant bank transfers (Osko) with your NAB transaction account and at the same time, receive a much higher interest rate on your savings with UBank.
2. You have an extra layer of security on your savings which protects you from YOU!
I once made the mistake of keeping my savings within the same bank as my transaction account and, like many others, I would often find myself taking from my savings to spend unnecessarily on things I didn’t need.
Having my spending and savings spilt between 2 banks means, if I were to try and transfer myself money, it would take at least a few hours to arrive in my transaction account. This inconvenience alone would often deter my want for the purchase in question.
Also, not seeing the amount of savings I had every time I opened my mobile banking app meant I often forgot about my savings which resulted in me being more careful with the money I had allocated to spend.
What's the catch? (Disadvantages)
Well, after all of that praise, there are still some drawbacks to this account that need to be considered. Like the previous account, UBank's Save Account does have a minimum deposit of $200 a month to be eligible for the bonus interest rate which again may be out of reach for some students. Another drawback, which will definitely exclude some people, is the fact that UBank impose a minimum age requirement of 18 years.