How to switch savings accounts
Choosing a savings account that’s right for you is the very first step to achieving your savings goals.
Typically, savings accounts offer low or no monthly fees, as well as attractive interest rates to grow your savings. Some even offer special introductory or bonus rates to give your funds an extra boost.
If you think a different account might work better for you, rest assured that switching savings accounts is quick and easy, and can be done in just a few simple steps.
What type savings accounts are there?
There are many types of savings accounts available, each offering different benefits and interest rates.
The savings accounts you can choose from include:
· Term Deposits are a good option for committed savers who want to lock their money away for a set period with a fixed interest rate. Generally speaking, the longer the term, the higher the interest rate.
· Online savings accounts are typically self-managed, which means providers can offer high interest rates and low or no fees.
· Incentive/bonus saver accounts can help you supercharge your savings by offering bonus interest rates if you meet certain conditions, such as depositing a minimum amount each month or making limited withdrawals.
· High interest savings accounts sometimes offer special introductory rates for a set period. As the name suggests, these accounts typically offer a higher interest rate than standard savings accounts.
· Cash management accounts are a simple way to manage all your investments, with competitive interest rates and easy access to your savings.
· Superannuation savings accounts offer steady and predictable returns – a great option for those who want to grow their retirement funds.
· Children's savings accounts are specifically designed for kids, instilling good savings habits early.
Why switch savings accounts?
There are many reasons why you might consider switching savings accounts.
Maybe you want an account that offers bonus rates for regular savers, or perhaps you have a specific goal in mind and you want to invest in a term deposit for a guaranteed return. Or maybe you’ve found an account that offers lower fees or better service, or you might want easier access to your money.
How do I switch?
You can typically switch savings accounts in just a few minutes. Simply follow these three easy steps.
1. Compare accounts
Find the account that's right for you by thoroughly comparing:
· Interest rates: Different lenders and types of savings accounts offer different interest rates. This is the rate at which you'll earn interest on your savings.
· Bonus or introductory offers: Keep an eye out for ‘honeymoon' rates, offered by a number of lenders as an incentive to open an account with them. This is a higher interest rate than the standard rate and is usually available for a set period of time after opening the account.
· Accessibility: Do you need to be able to access your money over the phone, online, or over the counter? Some accounts have limited accessibility options so make sure you choose check which options are available.
· Fees or charges, which may include:
· Monthly administration fees.
· ATM fees, either domestic or international.
· Card replacement fee
· Overdrawn account charges.
· Account features: Remember to check if there is a minimum opening balance, any monthly deposit requirements or restrictions on accessing your money. There might also be a daily ATM withdrawal limit and options on the types of accounts you can link your savings to.
Our comparison tables allow you to compare by interest rates, account features or fees and charges to help you compare accounts and find one that suits you.
Once you’ve chosen the account you want, click the ‘Go to site’ button in the comparison table. This will take you directly to the correct application to fill in. You’ll need some personal details handy, including:
· Current address.
· Tax file number.
· Proof of identification, including at least one or more of the following:
· Driver's licence.
· Birth certificate.
· Medicare card.
· Other bank cards.
· Contact details (i.e. email address and phone number).
· Employment details.
3. Get approved
Once you've submitted your application online and it's approved by your lender, complete the switching process by:
· Transferring money out of your old account and into your new one.
· Alert your employer about the change.
· Move any recurring payments or direct debits across to the new account. Your new financial institution may be able to assist with this.
· Close your old accounts by contacting the relevant financial institution.
Always read the terms and conditions carefully before signing up for a new account.
Switching savings accounts is quick and easy, and can help you get more out of your money.