Depositors can get ten per cent

Depositors should review their high interest online savings accounts every year to ensure that the interest rate on their account is still competitive. Many online savings accounts have an initial rate that is considerably higher than the ongoing rate which many revert after one month according to experts. While some accounts penalise depositors for taking money out, the top five accounts have no penalties for withdrawals. The BankWest Regular saver account now features a ten per cent interest rate for making regular deposits and no withdrawals. Bank accounts only make sense for short term savings says a tax expert because deposits are taxed at a person's marginal tax rate.

Source: Sunday Herald Sun

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