Big banks are leaving online no-fuss savers to suffer “horrific rates”, which means millions of Australians are earning little interest on their savings

But there are easy steps to change that, and the good news is it just got even easier to earn at least 5 per cent interest on savings.

Unity Bank began this week to offer 5 per cent to customers on what RateCity research director Sally Tindall calls a “fuss-free” savings account – one without any extra terms or conditions.

That means there’s no requirement to increase your monthly balance, or make at least one deposit.

“Even though the Reserve Bank isn’t moving, some savings rates are still going up, which is fantastic to see,” Ms Tindall said.

“Banks need money from households to fund their home loan books –as a saver your nest egg is a hot commodity.”

A no-fuss savings account hitting 5 per cent exposes how other no-fuss accounts – such as those offered by Commonwealth Bank and Westpac – are offering bad rates.

Customers on these accounts are only earning a couple of percentage points each month on their savings, despite the Reserve Bank having raised rates by 4 percentage points since May 2022.

Commonwealth Bank last week unveiled a massive $10.1 billion annual profit, attributed in large part to money it has made raising interest rates on home loans for millions.

Ms Tindall said it’s “unlikely [at] this point” that the big banks will offer these savers a better deal.

“This is the way they’re helping keep their profit margins nice and healthy,” Ms Tindall said.

“Keeping complacent savers on horrific rates.”

For Australians willing to do a little extra work each month, rates much higher than 5 per cent are available.

Some accounts with terms and conditions are offering more than 5.5 per cent.

Being eligible for those high rates requires doing things like growing your balance and making deposits in the account, but if you’re doing that anyway you could end up netting better returns.

Tips to meet conditions

Ms Tindall said there are some tricks families can use to make it easier to meet the terms and conditions, too.

She said that setting up online banking with transactions before the end of each month can tick your bank’s boxes with minimal effort.

That could include setting up a transfer of just a dollar to a savings account, or setting up routine savings transfers to ensure your balance grows each month.

“You can clear these hurdles every single month without having to lie awake at night,” Ms Tindall said.

There are those for whom a no-fuss account makes sense though, Ms Tindall said, particularly Australians with intermittent incomes who cannot make regular deposits.

“It’s a good option for people who don’t have a regular salary coming through,” she said.

“And people who might be taking money in and out on a regular basis from their nest egg.”

Unity Bank isn’t a major Australian bank, and there is no dollar limit on its new savings account.

But while that can deter some savers, it’s important to remember that the federal government guarantees deposits worth up to $250,000 for institutions with banking licences, Ms Tindall said.