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Different types of interest

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

Compound interest has a snowball effect on your savings – over time your savings grow as interest is added. You 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.

With simple interest, 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

  • 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.
  • 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. 
  • 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.
  • 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

For ANZ Online Saver accounts, ANZ Access Advantage accounts, ANZ Progress Saver accounts, ANZ Premium Cash Management Accounts and ANZ Pensioner Advantage accounts we will work out interest on the balance of your account at the end of each day. 

For 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.

Compound interest is one of the most powerful tools we have to reach our savings goals.


Interest calculators

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

 ANZ savings calculator

ANZ term deposit calculator


When interest is paid

Everyday accounts

For ANZ Access Advantage, the interest rate is tiered. We will add interest to your account every three months generally from the date you opened the account.

For 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

The ANZ Progress Saver account pays ‘base’ interest and, subject to eligibility, bonus interest. 

You qualify for bonus interest when you make at least one single deposit of $10 or more in a month and there are no withdrawals, fees or charges processed to the account in that same month.disclaimer

We will pay the base interest and, if applicable, the bonus interest calculated for each calendar month into your account on the last business day of that month. 

The base interest rate is tiered.

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

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. 

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):

  • For 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.
  • For 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.

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 444kB).

The information set out above is general in nature and has been prepared without taking into account your objectives financial situation or 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. ANZ Progress Saver pays bonus interest (in addition to the current variable base interest) in respect of a particular month if the set minimum deposit (currently $10) and no withdrawals, fees or charges are processed to the account on or before the last business day of that calendar month, and after the last business day of the previous calendar month. Bonus and base rates are variable and subject to change.

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