Online savings accounts are increasingly popular in Australia because of the high interest rates set by the Reserve Bank of Australia (RBA). They usually have higher interest rates than some term deposits. But the rate is variable, as opposed to the term deposit rate.
In 2008, the official cash rate reached 7.25% pa, only to fall to 3% early 2009. Banks are offering a higher rate on online savings accounts. This means one could get a great rate on funds that are not locked for any specific time period and are available almost immediately.
These accounts usually link to your transactional account and are allowed only to transact with that account. All of them are monthly fee-free, meaning you do not have to pay for the account maintenance.
Some accounts with high savings rate are listed below.
CBA - Commonwealth Bank of Australia
NAB - National Australia Bank
WestPac Banking Corporation savings accounts
InfoChoice has a savings account comparison tool. Link available in the Tools section.