The RBA cash rate sits at 3.85% in mid-2026, which means the best online savings accounts are again paying 5.00%+ if you meet their monthly bonus conditions. For international students earning wages, this is real money — a $10,000 balance now earns $500/year in interest instead of the $30 you'd get from a big-4 transaction account.

The Top 4 Accounts for Students (July 2026)

Bank	Max Rate	Balance Cap	Age Cap	Bonus Conditions
ING Savings Maximiser	5.40%	$100,000	18+	Deposit $1,000/mo + 5 card purchases + balance grows
ubank Save	5.10%	$100,000	18+	Deposit $500/mo into any ubank account
Macquarie Savings Account	4.75% (welcome), then 4.35%	$250,000	18+	No bonus conditions in first 4 months
Great Southern Bank Home Saver	5.35%	$50,000	Under 24	Deposit $500/mo + balance grows

Rates verified July 2026. Always check the current provider website before applying.

Which Banks Let Students Open Accounts

You need three things: a passport, a student visa in ImmiAccount, and an Australian address (even a homestay counts).

Most-forgiving providers for new arrivals:

• Commonwealth Bank — allows account opening up to 12 months before arrival, activation at any CBA branch.
• HSBC Australia — leverages international HSBC history if you had an account back home.
• Wise (Multi-currency) — not a bank but issues an AUD account number for wages/rent within days.
• ubank — 100% digital, accepts non-permanent visas.

Big-4 banks (CBA, ANZ, NAB, Westpac) all offer student accounts with $0 monthly fees under 25 or while enrolled full-time. You'll almost always open a transaction account first, then link a savings account after.

The Two-Account Strategy

Bonus-interest accounts almost always require you to:

1. Grow the balance every month, and
2. Deposit a minimum amount from an external account, and
3. Not make withdrawals during the month.

Set it up like this:

• Transaction account at CBA/ANZ/NAB/Westpac — receive your wages here, pay rent, groceries, transport from here.
• Savings account at ING/ubank/Great Southern — set an automatic transfer of $500–$1,000 on payday.

This way, the bonus conditions are met automatically, and if you ever need cash you touch the transaction account, not the savings account.

What About Term Deposits?

Term deposits pay a fixed rate, no bonus conditions, but you can't touch the money for the term (3, 6, 12 months).

Best 12-month term deposit rates in 2026:

• Judo Bank: 4.95%
• AMP Bank: 4.85%
• Macquarie: 4.80%

Only useful if you have savings you definitely won't need — for example, your $29,710 visa evidence money once it's parked past the 3-month rule.

Tax on Savings Interest

• Interest earned is taxable income and appears in your annual tax return.
• If you didn't give your bank a Tax File Number (TFN), the bank withholds 47% — you'll claim it back at tax time.
• First $18,200 of total income is tax-free for residents-for-tax (which most full-time students staying 6+ months become).

Set up your TFN in your bank's app before the interest starts flowing to avoid the withholding.

Foreign Currency Considerations

If you're sending home leftover savings before departure:

• Bank international transfers typically cost 3–5% in FX margin.
• Wise and OFX offer 0.4–0.6% margins.
• Timing matters — check the historical AUD chart before committing large transfers.

Red Flags to Avoid

• Any "guaranteed" 8%+ returns from a company you saw on Instagram. These are almost always scams — Australia's official banking regulator ASIC keeps a warning list.
• Signing up someone else for a bank account in your name to "help them" — you're personally liable and it will affect your PR.
• Depositing large unexplained cash amounts. Banks report cash deposits over $10,000 to AUSTRAC automatically.

Related Reading

• Best bank accounts for international students
• Opening a bank account before you arrive
• Sending money home safely and cheaply
• Savings Calculator