Savings Account Buying
Guide
Interest rates just keep going up,
and while this is bad news for borrowers, rate rises
combined with more competition in the deposit account
market have led to rich pickings for savers. High-interest
internet savings accounts have changed the way
many of us save. Promises of ‘no bank fees ever’
coupled with competitive rates and special deals seem
to have struck a chord with Australian consumers.
They’ve also forced some of the bigger, more
established banks to improve their offers in an attempt
to stem the flow of customers leaving in search of
higher rates.
It could be worth switching. If you've got money
parked in an everyday transaction account paying next
to nothing interest, you could be earning much more
by switching to an account with a better rate.
Internet savings accounts. If you’ve got web
access, opening an account is reasonably straightforward
and the interest rates are often much better than
'traditional' and 'bonus saver' accounts.
Term deposits. Interest on the best term deposits
is similar to the best internet savings accounts.
Rates are fixed for the term. The drawback is you
lose liquidity - early withdrawals are penalised with
a break fee.
Cash management accounts (CMAs). Alternatively (or
in addition), you may prefer an account designed for
both transactions and savings. Examples include CMAs
(that usually require several thousand dollars to
start an account or receive the higher interest rate)
and other ‘hybrid’ accounts that combine
higher interest with the ability to transact (for
example, using ATMs, paying bills, using phone and
internet banking for transfers).
'Traditional' savings accounts. Even when bonus rates
are added, the rates on most traditional savings accounts
often fall well short of the best term deposits, cash
management accounts and internet savings accounts.
Savings
Accounts try and source the best articles on the
internet to help and inform our valued customers so
they can maximise their saving potential. |
