While 7% interest on standard savings accounts is rare, some Australian banks like MOVE Bank, ING, and Rabobank offer high bonus rates (often above 5%) on their saver accounts by meeting conditions like regular deposits or spending, with rates around 5.10% p.a. being top-tier currently in Australia; check comparison sites like Canstar or Finder for the latest offers, as rates change frequently.
Getting a guaranteed 7% interest rate on savings in Australia is very difficult right now, with top savings accounts typically offering up to around 5% with bonus conditions (like Rabobank, ING, Bank Australia), while 7% rates are usually found in higher-risk investments like stocks or property, or as limited-time promotional regular savings accounts in the UK (not Australia), so you'll need to research bonus savings accounts, term deposits, investment options, or potentially P2P lending for higher returns, keeping risk in mind.
Finding a standard bank account with a 9.5% interest rate is highly unlikely in early 2026, as typical high-yield savings rates are around 4-5% (e.g., CommBank's 4.25% bonus, Bankrate's top online rates around 4.20%), while some specialized loans (like IDFC FIRST Bank education loans) or introductory fixed deposits (like G&C Mutual Bank's rates in Australia) might offer close to or above 4-5%, but 9.5% is usually for specific, limited-term promotions, specific loan types, or in different markets, not general savings.
You'll earn anywhere from a few hundred to a few thousand dollars in a year on $50,000, depending on the interest rate, which varies greatly from 0.05% in a basic savings account to over 3.0% or more in high-yield savings or term deposits (CDs). For example, at 1.5% interest, you'd earn $750; at 3.5%, you'd earn $1,750; and at 5%, you'd earn $2,500, calculated by multiplying $50,000 by the annual rate.
The highest bonus savings rate on our database right now is 5.10% p.a., with both Rabobank and UBank offering this top rate for the first four months only if you're a new customer. The top ongoing savings rate is 4.50% p.a. from Border Bank and Police Bank's on balances up to $30,000 with the U30 Super Charge Account.
Interest on $100,000 in savings varies widely, from a few dollars in a basic account to $4,000+ annually in a high-yield savings (HYS) or up to $7,000+ with higher-rate options like some fixed deposits or special accounts, depending on the Annual Percentage Yield (APY) and account type (e.g., 4.2% APY yields $4,200/yr vs. 0.01% yielding $10/yr), with rates often ranging from 0.01% to over 4-5% for competitive offers, sometimes reaching 7%+ with specific conditions or promotions.
As of January 2026, several banks offer top term deposit rates, with Heartland Bank, G&C Mutual Bank, and Unity Bank often leading for 12-month terms around 4.50% p.a., while Rabobank is strong for longer terms like 3-5 years. Other competitive options include Judo Bank, Great Southern Bank, Qudos Bank, and Macquarie Bank, but rates change frequently, so checking comparison sites like Savings.com.au or Canstar for the latest deals is crucial.
If you wanted to earn an average $3,000 per month, you would need to invest $1.6 million ($36,000 divided by 2.2%). While there is nothing wrong with passive investing, most investors are likely to do much better if they build their own investment portfolio.
Achieving a 30% return in a single year is possible with aggressive strategies and a dose of luck, along with the resilience to withstand market volatility. However, sustaining such high returns year after year poses a formidable challenge.
$500,000 can earn anywhere from a few thousand dollars (e.g., ~$9,000 at 1.8% APY in a money market) to over $25,000 (at higher fixed rates or potential stock market returns), depending heavily on the interest rate (APY) and investment type, from low-risk savings (1-4%) to higher-risk stocks (8-9%+), with rates fluctuating.
Best online high-yield savings account rates
Book FDs at Interest Rates of up to 8.00% p.a.
Within the scheduled small finance bank category, Suryoday Small Finance Bank offer the highest FD interest rate of 8.00% p.a. Among scheduled private sector banks, Bandhan Bank and RBL Bank offer the best FD interest rates of up to 7.20% p.a..
Getting a guaranteed 10% interest rate on savings is extremely rare and usually involves significant risk; standard high-yield savings accounts offer around 4-5% APY, while achieving 10% typically requires investing in riskier assets like certain stocks, real estate, or specialized funds, or potentially niche high-yield accounts with specific conditions.
Top 5 Best Banks in Australia
Commonwealth Bank (CommBank) savings rates vary by account, with their NetBank Saver offering a high introductory rate (around 4.45% p.a. for 5 months) for new customers, then dropping to a standard rate (around 1.55% p.a.), while GoalSaver offers up to 4.25% p.a. (including bonus) by growing your balance monthly, and Youthsaver can reach 4.30% p.a. (with bonus) on balances up to $50,000. Rates are variable and depend on meeting bonus criteria like monthly balance growth or deposits.
The table below shows the present value (PV) of $20,000 in 10 years for interest rates from 2% to 30%. As you will see, the future value of $20,000 over 10 years can range from $24,379.89 to $275,716.98.
Diversifying Your Portfolio to Reach a 10% Return
A diverse portfolio could consist of 30% in a mix of value and growth stocks, 30% in index funds, 20% in bonds, 10% in real estate and 10% in alternative investments like P2P lending or commodities.
Turning $1,000 into $10,000 in one month requires high-risk, high-reward strategies, often involving aggressive business ventures like high-volume flipping (e.g., window washing, retail arbitrage) or online businesses (dropshipping, e-commerce) where you reinvest profits quickly, or trading volatile assets like crypto, but success isn't guaranteed and carries significant risk, so consider diversifying into safer options like starting a service business (lawn mowing) or freelancing high-demand skills.
Put aside just $13.70 per day, and at the end of the year you'll have $5,000; double that to $27.39 daily and you'll have $10,000 by year-end—and that doesn't include the interest you may earn. You can save money by making a budget, automating savings, reducing discretionary spending and seeking discounts.
An average portfolio yield of 4.5% can provide you with a good mix of quality companies, stable (and even growing) dividend income, and lower risk/higher reward over the Index. With an average weighted yield of 4.5%, you would only need to invest $400,000 to collect an average of $1,500 per month.
The highest bank interest rates in Australia for savings accounts are currently around 5.10% p.a. with introductory bonus offers from banks like Ubank and Rabobank, though these are for a limited period (e.g., 4 months) and conditions apply, like regular deposits or balance growth. Major banks offer slightly lower introductory rates (e.g., ~4.5% p.a.) but often have ongoing bonus structures for younger customers or specific savings goals, while term deposits can offer rates around 4.5% p.a. for shorter terms like 12 months from mutual banks.
Westpac offers various term deposit rates depending on the term and if you open it online or in-branch, with recent figures showing around 3.55% p.a. for 12 months (online rate higher with bonus), and varying rates for shorter terms like 3 months (around 2.65-2.75% p.a.) or longer, with potential bonus rates up to 4.10% p.a. for 12 months for existing customers opening online. Rates are fixed for the term, with options for interest paid monthly or at maturity, and you should check the Westpac website for current figures as they change.
Interest on a $10,000 Fixed Deposit (FD) varies significantly by bank, term, and location, but you can expect anywhere from a few dollars to hundreds annually, depending on current rates, with higher rates often seen in high-yield savings or specialized banks (e.g., 4-9% p.a. in some markets like India/Australia, translating to $400-$900/yr, while standard banks might offer less than 1%). To calculate, multiply $10,000 by the annual percentage rate (APR).