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Earning interest on your bank account

5-minute read

Some bank accounts earn interest to help you save, but how does interest on ANZ bank accounts work?

Different types of interest

There are two ways interest can be applied to bank accounts:

Compound interest

Compound interest can have a snowball effect on your savings – over time your savings grow if interest is added. You may earn interest on the money you deposit, and on the interest that has previously been paid into your account – so you earn interest on interest.

ANZ Progress Saver or ANZ Online Saver are examples of accounts where you can earn interest on interest that has previously been paid to your account if you meet the relevant qualifying and eligibility criteria. (T&Cs apply and you should refer to the Savings and Transaction T&Cs (PDF) to learn more).

Compound interest can be a powerful tool to help reach a savings goal.

Simple interest

Simple interest is paid at an agreed frequency and is not added to the closing balance of the account.

ANZ term deposits are an example of accounts that earn simple interest.

How interest rates work

Fixed rate

  • A fixed rate account pays interest on your money at a specified rate that doesn't change for a specified period. This can provide certainty as you know how much interest your savings will earn over the fixed term.

Variable rate

  • A variable rate account, on the other hand, can offer more flexibility as you typically have access to your money at any time. However, the amount of interest you earn can move up or down. 

Tiered rate

  • A tiered rate means you will earn different rates of interest depending on the balance of your account. If your account balance is above a certain level, we will pay a higher rate of interest on the whole balance.

Banded rate

  • A banded rate of interest means that different rates of interest apply to different parts of your account balance. For example, the interest we pay on the part of your balance between $10,000 and $20,000 may be different from the interest we pay on the first $9,999 of the balance.

How interest is calculated

ANZ Online Saver, ANZ Progress Saver, ANZ Premium Cash Management and ANZ Pensioner Advantage

  • How we calculate interest can vary depending on the account type. See our T&Cs for further details on how interest is calculated generally and details on how we calculate interest for specific products.

ANZ term deposits

  • Interest accrues daily, based on the closing balance of the term deposit account on the relevant day.
  • The rate of interest is fixed for the term of your term deposit (subject to any adjustments for early withdrawals).
  • We will tell you the annual interest rate for the particular term that you have chosen when you establish a term deposit (and, if applicable, after a maturing term deposit is reinvested in a new term deposit).
  • The daily interest rate is the rate fixed for the term of your deposit divided by 365.

Interest calculators

Use our calculators to estimate how much interest you could earn.

When interest is paid

Knowing when interest is paid can help you plan your budget.

Everyday accounts

ANZ Pensioner Advantage

  • The interest rate is banded. We will add interest to your account every three months generally from the date you opened the account.

Savings accounts

ANZ Progress Saver

  • The account pays ‘base’ interest and, if you meet the eligibility criteria monthly you could qualify for and may earn, bonus interest.disclaimer
  • With an ANZ Progress Saver you can qualify for bonus interest when you deposit at least $10 in one transaction, and no withdrawals, transfers, fees or charges are processed to the account in that month.disclaimer
  • If you meet the eligibility criteria for bonus interest in a qualifying month you can generally earn interest from the last business day of the previous month up to (but excluding) the last business day of the qualifying month (T&Cs apply)disclaimer
  • The date a transaction, withdrawal, transfer, fee or charge is treated as being made or processed to an account may differ from the calendar day on which it occurs.disclaimer
  • The base interest rate is tiered.disclaimer
  • See Savings and Transaction Account T&Csdisclaimerfor qualifying period, qualifying conditions and the period you earn interest if you qualify.

ANZ term deposits

When you establish a term deposit, you choose how often you want to receive your interest, and this will affect the interest rate you earn (and you can't change the interest payment frequency during the term of your term deposit):

Term deposits of less than 12 months

  • Interest is usually paid on maturity. We also offer monthly, quarterly or half yearly interest payment options on selected terms of less than 12 months.

Term deposits of 12 months or more

  • Interest may be paid monthly, quarterly, half yearly or yearly, with an additional final interest payment on maturity, if applicable.

ANZ Premium Cash Management Account

The interest rate is tiered. We work out the interest every day and pay interest into your account every month. 

You can find out more about how interest is calculated and paid to your account in ANZ Saving and Transaction Products Terms and Conditions (PDF).

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The information set out above is general in nature and has been prepared without taking into account your objectives, financial situation or needs. Before acting on the information, you should consider whether the information is appropriate for you having regard to your objectives, financial situation and needs. By providing this information ANZ does not intend to provide any financial advice or other advice or recommendations. You should seek independent financial, legal, tax and other relevant advice having regard to your particular circumstances.

Bonus interest is subject to eligibility. With an ANZ Progress Saver you can qualify for bonus interest (in addition to the current variable base interest) if in a qualifying month the set minimum deposit (currently single deposit of $10) and no withdrawals, fees or charges occur. Deposits, withdrawals, fees and charges occur in a qualifying month if they have an effective date that is after the last business day of the previous month and on or before the last business day of that month. An effective date is a date we assign to the transaction in our system and may be different to the date when it occurred or when it was processed by our systems. If you qualify for bonus interest in a qualifying month, you can generally earn bonus interest from the last business day of the previous month up to (but excluding) the last business day of the qualifying month but this may differ depending on the effective date of a transaction. Refer to ANZ Saving & Transaction Products Terms and Conditions for further details including what’s included in your balance, how interest is calculated and how we work out if you earn and qualify for bonus interest. Interest rates are variable and subject to change.

Base interest rates are tiered. A tiered interest rate means the annual interest rate applicable to your account for a particular day can vary depending on the balance of your account on that day. This means that the rate of interest applicable on the whole balance of your account can be different depending upon the balance of your account on a particular day.

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