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If you’re looking for a savings account that pays 7% interest, you’re not alone. In early 2026, that rate still feels like a dream-especially after years of near-zero returns. But here’s the truth: 7% interest on savings accounts isn’t a myth. It’s real. It’s available. And it’s not hiding in some offshore bank. It’s right here in Australia, offered by a handful of digital-first institutions that are fighting for your deposits.
Who’s Actually Paying 7% Right Now?
As of January 2026, only a few banks and fintechs in Australia are offering 7% or higher on savings accounts-and they all come with strings attached. The most consistent performer is ING a digital bank that offers a high-interest savings account with a variable rate tied to promotional conditions. Their current offer is 7.05% p.a. for the first four months, provided you deposit at least $1,000 and make no withdrawals during that time.
Another contender is UBank a digital savings brand owned by NAB that runs regular bonus rate promotions. Their Saver account has hit 7.10% for new customers who meet a $500 monthly deposit requirement and make no withdrawals. The catch? The bonus rate lasts only six months, then drops to 3.25%.
Smaller players like ME Bank a mutual bank focused on customer-owned banking and Heritage Bank a regional mutual bank offering competitive savings rates have also dipped into the 7% range with targeted promotions. But these are usually time-limited and require you to link a transaction account or set up direct debits.
Why Isn’t Everyone Offering 7%?
You might wonder why big banks like Commonwealth, Westpac, and ANZ aren’t chasing you with 7% offers. The answer is simple: they don’t need to. Their customers are used to low rates and rarely switch. Digital banks, on the other hand, rely on attracting new customers to grow. They use high rates as a marketing tool-like a discount on a new phone.
Here’s how it works: these banks have lower overhead. No branches. No tellers. No ATMs to maintain. That lets them pass savings on to you. But they’re not giving away free money. They’re betting you’ll stay after the bonus period ends-or that you’ll open another product, like a home loan or credit card, with them.
What Are the Real Conditions?
Don’t be fooled by headlines that say “7% interest.” The fine print matters more than the headline. Here’s what you’ll usually need to qualify:
- Deposit a minimum amount (often $1,000-$5,000)
- Make at least one monthly deposit (no withdrawals allowed)
- Link a transaction account from the same bank
- Sign up as a new customer (existing customers rarely get the bonus rate)
- Keep the account open for a set period (usually 3-6 months)
If you miss one of these, your rate drops to the standard variable rate-often between 1% and 3%. That’s why tracking your activity matters. Set calendar reminders. Turn on account alerts. Treat this like a challenge, not a passive savings plan.
Is 7% Sustainable?
Interest rates in Australia are expected to stay high through 2026 as the Reserve Bank holds the cash rate at 4.35%. That’s why banks can afford to offer 7%-they’re lending money at much higher rates. But if the RBA cuts rates later this year, those bonus rates will vanish. That’s normal. It’s not a scam. It’s market logic.
Think of it like a seasonal sale. You wouldn’t expect a 70% off discount to last all year. Same here. The 7% rate is a temporary incentive. The real question isn’t whether it’s real-it’s whether you’re ready to act before it disappears.
How to Get the Best Deal
Here’s a practical checklist to lock in the highest rate:
- Compare current offers on RateCity Australia’s leading financial comparison platform and Canstar a financial research and comparison service. Rates change daily.
- Apply for the account with the highest bonus rate before the cutoff date. Many close early when they hit their customer cap.
- Use a separate savings account for each promotion. Don’t mix funds. That way, you can track which account qualifies for which bonus.
- Automate your deposits. Set up a direct transfer from your pay account on the 1st of every month. No manual effort means no missed requirements.
- Don’t forget tax. Interest over $120 per year is taxable. Keep a record of your statements.
What Happens After the Bonus Ends?
Most people make one mistake: they forget to move their money. After six months, their account reverts to 2.5%-and they don’t notice until they check their balance a year later.
Plan ahead. Two weeks before your bonus ends, compare the new options. You might find another 7% offer waiting. Or you might decide to roll the balance into a term deposit at 5.8%. Either way, don’t just let it sit.
Some people treat high-interest savings like a game: they hop from one bonus offer to the next, earning 7% for six months, then 6.8% for another six. That’s smart. It’s not gambling-it’s strategy.
Are There Risks?
The biggest risk isn’t losing your money. All Australian savings accounts with licensed banks are protected by the Financial Claims Scheme up to $250,000 per person per institution. That’s rock-solid.
The real risk is complacency. If you don’t track your account’s conditions, you’ll miss the bonus. If you withdraw even once, you’ll lose the rate. If you don’t plan your next move, you’ll end up earning less than inflation.
Also, be careful with “bonus rate” accounts from non-bank lenders. Some fintechs promise 8% but aren’t licensed deposit-takers. Stick to ADIs-Authorised Deposit-taking Institutions. That means banks, credit unions, and building societies regulated by APRA.
Alternatives to 7% Savings Accounts
If you can’t qualify for a bonus rate-or if you want more stability-here are other options:
- Term deposits: Lock in 5.5%-6.2% for 6-12 months. No conditions. No surprises.
- High-interest transaction accounts: Some accounts like Macquarie Bank a major Australian bank offering integrated financial services’s Savings Maximiser pay up to 5.1% if you deposit $1,000+ monthly and make 5+ card transactions.
- Online cash management accounts: Offered by platforms like Cuscal a financial services provider for credit unions and mutual banks, these often pay 4.5%-5.5% with no lock-in periods.
None of these match 7%, but they’re safer and simpler. Choose based on your discipline, not just the headline rate.
Final Thought: Timing Is Everything
Right now, in January 2026, 7% savings accounts are available. But they won’t be forever. The window opens and closes fast. If you wait for the “perfect” time, you’ll miss it. The best time to act was last month. The second best time is now.
Open one account. Meet the requirements. Let the interest compound. Then repeat. That’s how people turn $5,000 into $5,350 in six months-not by luck, but by paying attention.
Can I get 7% interest on a savings account from a big bank like CBA or Westpac?
No. The big four banks (CBA, Westpac, ANZ, NAB) don’t offer 7% on savings accounts. Their standard rates are below 2%. Only digital banks and smaller institutions use high rates to attract new customers. If a big bank claims 7%, it’s likely a limited-time promotion through a partner, not their main account.
Is the 7% rate guaranteed for the whole year?
No. The 7% rate is almost always a bonus rate that lasts 3 to 6 months. After that, it drops to the standard variable rate-usually between 1% and 3%. Always check the product disclosure statement (PDS) before opening the account.
Do I need to be an Australian resident to open one of these accounts?
Yes. All Australian banks require you to be a resident for tax and regulatory reasons. You’ll need a valid Australian address, tax file number, and identification like a driver’s license or passport. Non-residents cannot open savings accounts with bonus rates.
Can I open multiple accounts to earn 7% on more money?
Yes, but with limits. You can open accounts with different banks, each offering their own bonus rate. However, most banks only allow one bonus rate per customer per product. So if you already have an ING savings account, you can’t get the 7% again by opening a second one. But you can open one with UBank and another with ME Bank.
What happens if I withdraw money during the bonus period?
You’ll lose the bonus interest for that month-or sometimes the entire promotional period. Most accounts require no withdrawals during the bonus term. Even a $1 withdrawal can reset your eligibility. Always check the terms before touching the money.
Are these accounts safe?
Yes-if the bank is an Authorised Deposit-taking Institution (ADI) regulated by APRA. All major digital banks like ING, UBank, and ME Bank are ADIs. Your money is protected up to $250,000 under the Financial Claims Scheme. Avoid non-bank lenders that aren’t on the APRA register.
How often do these 7% offers appear?
New offers appear every 1-3 months, especially at the start of the year or during promotional seasons like tax time. There’s always at least one bank running a 7%+ bonus rate. You just need to check regularly on comparison sites like RateCity or Canstar.