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Money in the bank ain't what it used to be

Money in the bank ain't what it used to be

There are now very few transaction accounts in Australia that pay even 1 per cent in interest without imposing monthly fees or difficult conditions.

A RateCity analysis has found three that fit the bill – bank accounts from Gateway Bank, Bank of Sydney and Macquarie Bank (see table below).

None charge a monthly fee. All three pay at least 1.10 per cent in interest, provided you have a minimum balance of anywhere from $1 to $5,000 (depending on the bank).

While there are other everyday bank accounts that pay higher interest rates, they charge monthly fees or require sizeable balances or require sizeable monthly deposits.

There are also some pension bank accounts and student bank accounts that pay higher interest rates without charging monthly fees.

Australia’s inflation rate is currently at 1.9 per cent, so deposits in those Gateway, Bank of Sydney and Macquarie accounts are actually going backwards in real terms.

LenderAccountMonthly feeInterest
Gateway BankEdge AccountNone1.50% for balances of $1,000 and above (0.01% up to $999)
Bank of SydneyEveryday SaverNone1.35% for balances of $1 to $50,000
Macquarie BankTransaction AccountNone1.10% for balances of $5,000 and above (0.00% up to $4,999)

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This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.

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