Save online for best interest rates at-call

With interest rates low, savers looking for decent returns in an at-call deposit account will do well to look to the internet. An increasing number of accounts only available online have the jump on other cash management style savings accounts. Their higher rates and lower fees are made possible because accounts are less costly to maintain online with no branch access. These accounts usually have ATM access or can be linked to a standard savings account at another bank so that cash can be deposited and withdrawn. Credit unions and non-traditional banking institutions were the first to offer these accounts, but finally the major banks are now offering them too. Anyone with substantial savings in a bank account at one of the big four banks should review their account choice in light of the new offerings. Check the latest interest rates on offer in these accounts. Of course, those who have a home loan with a full offset account attached can do even better. Invested savings then earn an effective return equal to their home loan interest rate, say 7 per cent or more.