Do I need an online savings account?

Interest rates offered by online at-call high interest savings accounts have come down in recent months along with the Reserve Bank’s official cash rate, which is now set at 2.0 per cent. However with bonus rates and/or introductory rates that most account offer, savers can still snag good account deals. Rates around 3.0 per cent and above is still possible.

If you are saving for a short term goal, such as a holiday next year, a savings account is probably your best friend. A savings account is the cornerstone of every diversified investment portfolio. For reitrees, savings accounts now pay comparable rates to term deposits, so they are really competing for your attention.