Best Way to Earn Interest on Money: Top Strategies to Maximise Your Savings in 2025
Rates are at 5.25% p.a., making this the best way to earn interest on money we’ve seen in over 10 years. But with the Reserve Bank already cutting rates twice in 2025, experts predict more cuts to come. Savvy savers are acting now to lock in these high returns before they disappear.
The difference is huge: on $100,000, 5% instead of 1% is an extra $4,000 per year. That’s real money you could be earning now.
From high-interest savings accounts paying 5.25% to government bonds yielding 4.5%, this guide shows seven ways Australian savers are maximising their returns. Whether you’re conservative or willing to go for higher returns, there’s an option for you.
7 Ways to Maximise Your Returns
High Interest Savings Accounts
Top providers are offering 5.25% p.a. for qualifying account holders. High-interest savings accounts are the top choice for 57.4% of Australians.
Most savings accounts have government guarantee up to $250,000. Many high-interest savings accounts now have no account fees, so you can earn more with your bank account.
Low Risk Investment Strategy
This low risk way to grow your savings has different interest rates based on your account activity. Many providers offer bonus interest rate for new account holders for a short period. These rates help you reach your savings goals during promotional periods.
Top High Interest Savings Accounts
ING Savings Maximiser: 5.00% p.a. with bonus interest rate conditions, no account fees
MOVE Bank Growth Saver: 5.25% p.a. with minimum deposit requirements for account owners
Macquarie Bank Saving s Account: Max rate savings, minimal account fees
BOQ Future Saver: For ages 14-35, low account fees on savings account
BCU Bank Savings: Member-focused savings account with competitive rates for long term savings
To discover expert insights on choosing the right savings account, check out this Choice high-interest savings accounts comparison guide
Savings Account Requirements and Conditions
Most banks offer these high-interest savings accounts with different minimum amount requirements. You must make at least one deposit a month to get bonus rates on your savings account.
Many savings accounts require regular deposits to qualify for bonus interest. Check the fine print for specific terms and conditions on each savings account.
The same provider often offers better rates if you have multiple savings account products. Compare different high interest rates across providers and other accounts to find the best savings account for you.
To explore comprehensive comparisons of over 200 savings accounts with current rates up to 5.15% and expert analysis of bonus interest conditions across major Australian banks, check out this Canstar best savings account interest rates guide.
Term Deposits
Australian term deposits are offering guaranteed returns with the best rates at 4.60% p.a. for 4 months.
Term deposits offer guaranteed returns with fixed rate security over a set period. They provide certainty for conservative savers who want their money untouched for specific periods. This low risk investment option is for long term savings strategies.
Top Term Deposit Options
Judo Bank: 4.4% for 6 months with loyalty bonus interest rate
ING Term Deposit: 4.15% for 6 months, introductory rate available
AMP Bank: Competitive fixed rate options for longer terms
CommBank: Special offers from July 2025
Term Deposit Strategy for Smart Savers
Create a laddering approach across different maturities. This strategy provides regular access to funds and protection against interest rate changes. You earn interest consistently while maintaining low risk exposure.
Laddering Example for $50,000:
$10,000 in 3-month term at 4.30% interest rate
$10,000 in 6-month term at 4.15% interest rate
$15,000 in 12-month term at 4.1% interest rate
$15,000 in 2-year term at 4.0% interest rate
To unlock expert term deposit strategies, compare rates up to 4.60% across major Australian banks, and discover advanced laddering techniques, check out this Mozo term deposits guide.
Government Bonds
Australian Government Bonds are currently yielding 3.1% to 4.5% p.a. depending on the maturity period.
Australian Government Bonds have AAA credit ratings. They offer the highest level of security for putting your money into safe investments. This low risk option is for conservative long term savings approaches.
Government Bond Options
10-Year Treasury Bonds: 4.33% interest rate
Exchange-Traded Treasury Bonds (eTBs): Through ASX
Treasury Indexed Bonds (eTIBs): Inflation-protected returns
Green Treasury Bonds: Environmentally focused government debt
Government Bond Benefits
AAA credit rating for maximum safety
Interest paid semi-annually for consistent returns
No credit risk as government backed
Professional market liquidity for your savings goals
To access the ASX’s comprehensive guide on Australian Government Bonds, understand eTBs and eTIBs trading mechanisms, and learn about regular coupon payments and maturity processes, check out this ASX Government Bonds investment guide.
Corporate Bonds
Corporate bonds are offering 4-6% p.a. depending on the credit quality of the issuing company.Corporate bonds offer higher interest rates than government bonds. They carry extra credit risk but provide more returns for your investment portfolio.
These bonds are loans to companies seeking capital for growth or operations. Your money funds business expansion while you earn interest payments. Most corporate bonds pay interest twice yearly and return principal at maturity.
Corporate Bond Strategy
60% investment-grade corporate bonds
30% bank bonds
10% higher-yield opportunities
Research requires credit ratings analysis. You must assess company financial health before investing. Some providers offer lower rate initially but increase returns over time.
Competitive rates across different rates and accounts.
To discover investment-grade corporate bond strategies, understand senior fixed-rate bond selection criteria, and learn about portfolio diversification benefits with Australian corporate debt, check out this Betashares corporate bonds guide.
Online Banks
Digital banks offer 0.2-0.5% higher rates than traditional banks. Digital banks consistently offer competitive high interest rates due to lower costs.
They provide great value with advanced savings account features. You save on account fees while earning more. Most online savings account options support your savings goals with extra features.
Top Online Banking Options
UBank: Competitive ongoing rates for your savings account
ING Australia: Market leading rates with strong high interest savings account offerings
Macquarie Bank: Strong online presence with competitive savings account rates
Credit union options: Member focused rates, often better than standard savings account rates
BCU Bank: Credit union alternative with competitive savings account options
This expert comparison analysis covers Australia’s top online banking options for 2025, providing detailed comparisons of UBank, ING, and Macquarie Bank with specific focus on their digital banking features and competitive interest rates, plus insights on why online banks offer better rates due to lower overhead costs.
Digital Banking Benefits
Higher rates due to lower costs
24/7 savings account access with linked transaction account integration
Advanced mobile banking features for easy savings management
Lower account fees across all accounts
Real-time interest rate monitoring to optimise your savings
Each account holder benefits from digital-first banking. Credit union alternatives often provide better service than traditional banks.
Your linked account connects seamlessly to your primary savings account. Most banks offer mobile apps with debit card access for card purchases and spending tracking.
To leverage expert 2025 analysis of Australia’s top online banks including UBank, ING and Macquarie, understand how lower overhead costs translate to better rates and fees, and access detailed comparisons of digital banking features and mobile app innovations, check out this Dad Investor online banks guide.
High-Yield Transaction Accounts
High-yield everyday accounts currently offer 2.5-3% interest rates with conditions. These everyday transaction accounts offer competitive rates on money you use for daily spending.
They provide great value for your regular savings alongside daily banking needs. Many offer bonus interest rate opportunities through everyday banking activities.
Best Transaction Account Options
Great Southern Bank: 3% bonus rate with conditions and low fees
Bendigo Bank: 2.5% ongoing rate for your transaction account
Regional banks: Better rates for local customers
Credit union options: Member-focused rates, often better than standard savings accounts
Transaction Account Strategy
Use as your main spending account to earn interest on everyday money. Meet transaction requirements through your linked transaction account activities.
Set up direct deposit and maintain balance growth. Make regular deposits monthly to activate bonus features on your transaction account.
Your linked transaction account should link to a high-interest savings account for maximum returns. Most providers require an opening balance to activate bonus interest features. This low risk approach supports your savings goals.
Transaction Account Conditions
5-15 transactions per month through your transaction account
Direct deposit setup to your linked transaction account
Balance growth via regular monthly deposits
Monthly activity to access higher earning potential and meet eligibility criteria
Credit union institutions often have better terms than major banks. Many credit union account members have lower account fees than major banks.
Your transaction account performance improves when paired with their linked services. Most accounts have unlimited withdrawals with debit card access. Some accounts have withdrawal limits that reset monthly.
To maximize your earning potential with detailed rate comparisons across Australia’s leading banks, understand specific eligibility criteria for bonus interest, and access real-time updates on changing rates and promotional offers, check out this Canstar best savings account interest rates resource.
Cash Management Accounts
Professional cash management platforms offer 4.75%+ interest rates for large deposit balances.
Professional platforms offer institutional-grade rates for large deposits. These accounts require a minimum opening deposit but provide higher returns. Suitable for long term savings strategies for serious investors.
Cash management accounts bridge the gap between savings accounts and investment products. They offer higher rates than savings accounts. Your money remains accessible while earning competitive returns.
Professional Platform Options
Macquarie Cash Management Account: 4.75% ongoing rate with no fees
Investment platforms: 5%+ rates for $100,000+ balances
SMSF cash options: Tax benefits for self-managed super
Business banking platforms: Commercial rates for business account holders
Requirements and Eligibility
Minimum Balance Requirements:
Most platforms require $10,000 to $50,000 initial deposit
Some premium accounts require $100,000+ to access top rates* Balance requirements to maintain minimum number of high-value clients
Application Process:
Financial assessment and meet certain criteria
Proof of income and investment experience
Some platforms restricted to wholesale or sophisticated investors
Advantages Over Standard Accounts
Higher Rates: Cash management accounts offer 1-2% higher rates than standard savings accounts. This makes a big difference to your money growth over time.
Professional Management: Funds managed by investment professionals who optimise returns. They use money market instruments and short-term investments to maximise interest earned.
Institutional Access: You get access to wholesale money market rates reserved for large institutions. Better than retail account rates.
To master professional cash management strategies with institutional-grade rates, understand SMSF and investment platform integration features, and access detailed analysis of minimum balance requirements and professional money market access, check out this Macquarie Cash Management Account guide.
Current Market Recommendations
Top Priority for Australian Savers
With interest rates falling, action is required now:
Lock in current high interest rates before RBA cuts affect your savings account### Tips to Get it Right
Spread across multiple institutions to protect your money
Automate to meet bonus interest conditions on each savings account and linked account
Review your savings account quarterly to maximise returns and achieve savings goals
To master urgent strategies for Australian savers facing RBA rate cuts, understand how falling cash rates impact savings returns, and access expert advice on protecting earnings when interest rates decline, check out this Finder savings rate cuts guide.
Common Mistakes to Avoid
Not providing Tax File Number means 47% withholding on interest earned
Chasing promotional rates without checking account fees on your savings account
Keeping all funds in one savings account above guarantee limits
Ignoring bonus conditions and losing interest on your money
Not meeting regular deposits to earn bonus interest
Not considering credit union options with better terms and more withdrawals allowed
Conclusion
The right strategy for you depends on your situation and risk tolerance. With rates falling, you need to act now.
Start with high interest savings account options with good rates and flexibility. Consider your transaction account needs when choosing products that support your savings goals.
Remember: 1% vs 5% on $100,000 is $4,000 per year. Each savings account you choose should earn interest efficiently and meet certain criteria.
Your linked transaction account integration ensures you get bonus interest rates consistently. Smart savings account selection and discipline create more wealth over time. Even accounts with a lower rate initially can provide long term savings value.
Choose wisely and act now in this rate environment. Your decisions today determine your future and help you achieve your savings goals in this short window of opportunity.
Originally Published : https://www.starinvestment.com.au/best-way-to-earn-interest-on-money/
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