What Is Bonus Interest?
Most high-rate savings accounts in Australia advertise a headline rate that includes a bonus component. For example, a 5.30% rate might be 0.10% base + 5.20% bonus. You only earn the full rate if you meet certain conditions each month.
Miss just one condition and you drop to the base rate — often less than 0.10% p.a. That's a massive difference on a $50,000 balance: $2,650/year vs $50/year.
The Real Cost of Missing Bonus Conditions
This is the most important thing to understand: a "lower" rate you always qualify for will almost always beat a "higher" rate you miss even a couple of times a year.
On a $50,000 balance, missing just 2 months of bonus conditions on a 5.30% account drops your effective return below what you'd earn on a 4.50% account where you meet conditions every single month.
This is why BankMate's questionnaire asks what conditions you can actually meet — we'd rather show you a lower rate you'll consistently earn than a headline rate you'll miss.
Annual Interest on $50,000
How missing bonus conditions eats into your returns
Missing just 2 months on a 5.30% account drops you below what a reliable 4.50% account earns all year. A bonus rate only pays off in the months its conditions are met.
Common Bonus Conditions
1. Monthly Deposits
The most common requirement. You typically need to deposit a minimum amount each month — anywhere from $1 to $2,000 depending on the account.
- Westpac Life: Deposit $2,000/month
- ING Savings Maximiser: Deposit $1,000/month
- Great Southern Bank: Deposit $200/month
2. No Withdrawals (or Limited)
Some accounts penalise you for withdrawing money. This ranges from "no withdrawals at all" to "max 2 per month."
Watch out for: Accounts that reset your bonus for the entire month if you make even one withdrawal.
3. Card Spending
Some accounts require you to make a certain number of debit card transactions. This is common with ING and some smaller banks.
4. Balance Growth
Your account balance must grow each month (after excluding interest). This effectively means deposits must exceed withdrawals.
What Happens If You Miss a Month?
If you fail to meet the conditions in any given month, you typically earn only the base rate for that month. Most accounts reset monthly, so missing one month doesn't affect future months.
The base rate is usually between 0.01% and 0.55% p.a. — essentially nothing. That's why consistency matters more than chasing the highest headline rate.
Tips for Maximising Your Rate
- Set up automatic transfers — schedule your minimum deposit on pay day
- Use a separate transaction account for spending — keep your savings account untouched
- Check withdrawal limits — some accounts allow 1-2 per month without penalty
- Stack accounts — if you have more than one account's balance cap, split across multiple accounts
- Be honest with yourself — pick conditions you'll actually meet, not ones you hope to meet