How does a savings account work?

A savings account lets you deposit money and earn interest, helping you save for a specific financial goal. When you open a savings account, you can use it for several purposes. For instance, you can get your pay deposited into the account or receive transfers from other people and banks. You can also open a joint savings account, which is great for couples or two individuals working towards a shared money goal.

A savings account doesn’t link to a debit card, so you won’t receive one when you open a savings account. Since the card isn’t directly linked, you’re less likely to spend the money you’re saving.

Depending on the type of savings account, you may not be able to make direct payments without a linked transaction account.

How many savings accounts should you have?

You can open as many savings accounts as you need with your bank. The number of accounts will depend on your personal situation. There are certainly benefits to having more than one savings account.

  • You can separate your savings for different needs and goals, such as emergencies, travel, entertainment, etc. Bucketing your money makes it easy to manage and track your progress with those specific goals.
  • Having multiple accounts with one bank might also simplify your banking experience, as you can access all your accounts through the same online and mobile banking platform.

Savings account fees

Understanding the costs associated with your savings accounts is key to maximising your savings potential and avoiding unwelcome surprises. Banks could charge account fees for monthly maintenance, currency conversions, ATM withdrawals, etc. 

Explore our savings accounts now

The difference between a savings account and a transaction account

Unlike a savings account whose primary purpose is helping you earn interest; a transaction account is used for everyday spending. With a transaction account, you can link a debit card to make purchases online and in-store, withdraw cash from ATMs, and set up direct debits for your regular expenses.

Learn more about how transaction accounts work. You can also compare our range of savings and transaction accounts to find the one that’s right for you.

Consider a term deposit

A term deposit is a type of savings account where you deposit money for a fixed amount of time - called a term. You can’t access the money you’ve deposited before the term end-date unless you give us 31 days’ notice. Because of this, you can typically get a higher interest rate with a term deposit.

Learn more about different types of bank accounts so you can decide which is right for your money goals.

How to open a savings account

If you’re looking to open a savings account, here’s a quick checklist of things to consider:

  • Consider the features and benefits of each account type before choosing.

  • Think of how you’ll apply. Most banks will let you choose between applying online, via an app or in-person at a local branch. 

  • Consider if you’re looking for an individual or joint savings account.

  • Check your eligibility and gather the relevant documents.

  • Before you submit your application, review the terms and conditions.

  • Once your account is opened, register for and set up your online banking.

Next, you’ll be able deposit money and start earning interest. With us, it will typically take less than five minutes to open a savings account.

  • NAB Reward Saver: This account is suitable for anyone looking to grow their savings faster. Earn a bonus interest rate when you make regular deposits and no withdrawals.
  • NAB iSaver: With this online savings account, you have the flexibility to make withdrawals using your linked NAB transaction account without affecting your interest rate. You’ll also receive a competitive introductory interest rate for the first four months.

Learn more about opening a bank account online. If you’re ready, get started by exploring our savings accounts.

Account options to consider

Explore our transaction and savings accounts to understand which best supports your financial goals.

NAB Reward Saver

Grow your savings faster with a higher interest rate, if you're a motivated saver.

NAB iSaver

Enjoy flexibility with your savings while still earning interest. Receive the fixed bonus margin for the first four months on your first new account for balances up to $20m.

Transaction accounts

Access your money with our everyday bank accounts with no monthly fees.

Budgeting and savings guides

Whether you’re saving for a house, or just want to get better at budgeting, we have some handy guides to help.

10 money saving tips to help you reach your goals

Read our simple tips you help you control your spending and save more money.

How to budget

Create a budget to help you meet your money goals.

Budgeting and saving

Learn how to budget. We can help you achieve your financial goal faster, whether it's for a deposit, travel or other.

Terms and Conditions

The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, NAB recommends that you consider whether it is appropriate for your circumstances. NAB recommends that you seek independent legal, financial and taxation advice before acting on any information in this article.

Target Market Determinations for these products are available at nab.com.au/TMD.