Which Bank Gives 8% Interest on Savings Accounts in Australia?

If you’re looking for a savings account that pays 8% interest, you’re not alone. Many Australians are searching for ways to make their money work harder, especially with inflation still hovering around 3.5% and mortgage rates staying high. But here’s the reality: no major Australian bank currently offers 8% interest on standard savings accounts. That number sounds great - too great - and it’s often a red flag for misleading ads or promotional offers that don’t apply to most people.

Why 8% Interest Is Rare in Australia

The Reserve Bank of Australia (RBA) sets the cash rate, which influences what banks can afford to pay savers. As of January 2026, the official cash rate is 4.35%. That means banks are borrowing money at around that rate. To make a profit, they lend it out at higher rates - like 6-7% on home loans - and pay savers far less. Even the best savings accounts typically offer between 5% and 6.5% for new customers, and only if you meet strict conditions.

So where does the 8% claim come from? Usually, it’s from:

• Short-term bonus interest rates (last 3-6 months)
• Special promotions for new customers only
• Linked accounts requiring monthly deposits or no withdrawals
• Non-bank financial institutions or fintech apps that aren’t regulated like traditional banks

None of these are permanent. Once the promotional period ends, the rate drops - often to 0.5% or less. If you’re chasing 8%, you need to know the fine print before you sign up.

What Actually Pays 6%+ Right Now (2026)

While 8% doesn’t exist for regular savers, several accounts come close - if you’re willing to jump through a few hoops. Here are the top performers as of early 2026:

These accounts all require discipline. You can’t touch the money. You must deposit regularly. And you can’t switch banks every few months expecting the same rate - promotions reset only for new customers.

What About ISA Accounts?

You might have heard about ISA accounts offering 8% - but those are UK-specific. ISA stands for Individual Savings Account, and it’s a British tax-free savings and investment vehicle. Australia doesn’t have ISAs. We have different rules: savings interest is taxable, and there’s no equivalent government-backed tax-free wrapper like the UK’s ISA.

If you’re seeing ads for "Australian ISA accounts" with 8% returns, they’re either misleading or scams. Some fintech apps use the term "ISA" to sound more professional, but they’re not regulated like UK ISAs. They may be offering high returns through riskier investments - like peer-to-peer lending or crypto-backed products - which aren’t covered by the Australian government’s $250,000 deposit guarantee.

How to Get the Highest Possible Rate Without Risk

If you want real, safe, high interest - stick with these steps:

1. Choose a bank that offers a bonus interest rate (like ING or ME Bank)
2. Set up automatic transfers so you deposit at least $500-$1,000 every month
3. Never make a withdrawal - even $1 will kill your bonus rate
4. Use a separate savings account, not your everyday account
5. Reassess every 6 months - rates change often, and new deals pop up

For example, if you save $1,000 a month in an account paying 6.25% bonus interest, you’ll earn $312.50 in interest over 12 months - not bad for zero risk. But if you withdraw once, you lose that entire bonus for the month.

What Happens When the Bonus Rate Ends?

This is where most people get trapped. They sign up for the 6.5% offer, forget about it, and six months later, their account is earning 0.3%. That’s a 95% drop in return.

To avoid this:

• Set a calendar reminder for when your bonus rate expires
• Compare new offers before the promotion ends
• Move your money to the next best deal - there’s no penalty for switching
• Don’t get loyal to one bank. Loyalty doesn’t pay here

There’s no shame in moving your savings. Banks expect it. That’s why they offer big bonuses to attract new customers.

Are There Any 8% Accounts at All?

Technically, yes - but not for savings. If you’re willing to take on risk, you might find:

• Peer-to-peer lending platforms offering 7-9% returns (no deposit guarantee)
• Crypto savings accounts promising 8-12% (highly volatile, not regulated)
• Structured products tied to stock market performance

These aren’t savings accounts. They’re investments. And if you lose money, the government won’t protect you. The $250,000 deposit guarantee only applies to licensed banks, credit unions, and building societies - not fintech apps or crypto platforms.

What Should You Do Instead?

Forget chasing 8%. Focus on getting the highest safe rate you can. Even 6% is better than what most people earn. Here’s a simple plan:

• Open one high-interest savings account with a bonus rate (ING or ME Bank)
• Automate $500+ monthly deposits
• Never withdraw
• Switch to a new offer every 6 months
• Keep emergency cash in a separate account with instant access

That’s how you turn $10,000 into $10,600 in a year - without risking a cent. It’s not flashy. But it’s real.

Final Reality Check

There’s no magic bank in Australia giving 8% interest on savings accounts. If someone tells you otherwise, they’re either misinformed or trying to sell you something risky. The banks that pay the most are the ones that want you to save consistently - not to chase unrealistic returns.

Stick to the facts. Stick to the rules. And your money will thank you.