It is possible to get a good rate on your savings, even though the Reserve Bank of Australia has cut official interest rates to a record low level, currently 1.5 per cent. That may be low but the official Australian inflation rate is currently even lower, at 1 per cent. The best Australian high interest online savings accounts are currently paying over 3 per cent so it is possible to grow your savings with a good account. Savers need to make their money work and earn a good rate of interest by shopping around and choosing the right account. Your savings account can be with any bank or credit union Your savings account does not have to be with the same bank or credit union that provides your transaction account. You can choose any Australian authorised deposit taking institution for your savings account. Your savings account can usually be linked to a transaction account with any other Australian institution. Australian government guarantees your savings Deposits held by any Australian authorised deposit taking institution, like a bank or credit union, are guaranteed by the government of Australia, up to $250,000. This means you can deposit your money in any credit union or bank and feel secure that your money is safe. If you have more than $250,000, you can break it up into two or more accounts to get under the $250,000 cap on the government guarantee. Which savings accounts have the highest interest rates? There is a new market leader in the savings account market. The highest rate savings account right now in Australia is ME’s Online Savings Account with a bonus rate of 3.35 per cent and a base rate of 1.55 per cent. There are currently 14 other accounts offering 3.0 per cent or more as a bonus savings rate. Compare savings accounts here.