Australian Savings Calculator
Project savings growth with regular deposits and compound interest. Free, privacy-first — inputs never leave your browser.
Details
Result
Ending Balance
A$82,906
Total Deposits
A$63,000
Interest Earned
A$19,906
For estimation only. Not professional financial, tax, or legal advice. Consult a qualified advisor before making decisions. Full disclaimer.
Australian savings rates in 2026
Online savings accounts (bonus interest tier): 5-5.5% p.a. if conditions are met (monthly deposits, no withdrawals). Standard savings: 0.5-2%. Term deposits: 4-5.25%. Compare via Canstar or RateCity before committing.
Beware: savings interest is fully taxable
Interest is added to your taxable income at your marginal rate — up to 47% for high earners. If you have a mortgage, $10,000 in offset account saves ~6% tax-free, beating any savings account after tax for most earners.
Common questions about Savings
Are Australian savings taxed?+
Yes — interest is added to your taxable income at your marginal rate. Joint accounts split interest 50/50 between holders.
Offset account vs savings account?+
If you have a mortgage, an offset account is almost always better than a savings account — offset interest saved is effectively tax-free "return" at your mortgage rate (~6%), while savings interest is taxable.
What are current Australian savings rates?+
Bonus savers (with conditions like monthly deposits): 4.5%-5.4% p.a. Unconditional rates: 3.5%-4%. Term deposits 1-5 years: 4.25%-4.75%. High-interest accounts (ING Savings Maximiser, Macquarie Savings, ME HomeME): lead the bonus-rate category. Rates track RBA cash rate (currently 4.35%). Look for accounts without excessive hoops (minimum deposits, age caps, card-use requirements).
How is savings interest taxed in Australia?+
Fully taxable at your marginal rate. Banks report interest to ATO via TFN — if you've not supplied your Tax File Number, they withhold 49% (pay-as-you-go). Joint accounts split interest 50/50 between holders regardless of actual contribution (a common way couples split income for tax efficiency). Children's savings interest is taxed punitively — minors above $416/year interest pay 66% or 45% on excess; use parent accounts for low-income family members instead.
Are savings deposits insured?+
Yes. The Australian Government's Financial Claims Scheme guarantees deposits up to $250,000 per account holder per ADI (Authorised Deposit-taking Institution). Applies to banks, credit unions, and building societies holding Australian licences. Note: some "banks" share ADI licences — check the ADI separately to avoid unintentional over-concentration. Deposits above $250k per ADI should be split across multiple institutions for full coverage.
Where should I keep my emergency fund?+
Bonus saver or high-interest online account for liquid access at 4%-5% APY. Avoid locking into term deposits — defeats the purpose of emergency accessibility. Keep 3-6 months of essential expenses (rent, groceries, utilities, insurance). Some couples use offset accounts against mortgage (4.5%-6.5% effective return, tax-free) for emergency funds — excellent choice if you have a mortgage and consistent income.