InfoChoice guide: How to find the best savings account
Spoiler alert: Finding the best savings account is not just about finding the highest savings account rate in Australia. The best savings account in Australia for you depends how you save and manage your money. Look at the rules and terms of the account to ensure that you can get the maximum rate.
An introductory rate savings account might be best for you if:
- You’re new to savings
- You need to make withdrawals
- You’re willing to look for another account once the introductory period is over, and
- You’re happy to leave your money in place until the introductory period is over.
A bonus saver account might be what you’re looking for is:
- You’re an experienced saver
- You’re confident you won’t make any withdrawals
- You can make regular deposits, and
- You appreciate any incentive rates on offer.
You can start your search for a savings account on a reliable comparison site; take your time and really think about what your aims are before settling on one product.
How to make your savings account work for you
Many Australian savers link their savings account to their everyday account. This makes it easier to deposit money into the saver and often gives you little perks like bonus interest rates or fee-free withdrawals.
You can’t use your saver for things like direct debits, as it’s all about growing the money, although you can transfer money from it into your transaction account. If you’re confident you won’t be making any withdrawals, then you might prefer a term deposit.
What are the benefits of finding a good savings account?
There are lots of great saving accounts available to Australian savers. You need to know what you’re looking for and what the various features will do for you first, so that you can find the one that’s best for you and your needs.
Low opening deposits
Some savers have no minimum opening deposit, so you can get started with one dollar or even nothing. Many of these accounts don’t have a minimum monthly deposits either, although your interest rate might be on the low side.
Low or no monthly fees
Don’t pay fees on a savings account. Good savings accounts do not charge fees.
Interest means your money will grow
All you need to do is open the account and make at least one deposit. All savers will earn you some interest, even if it’s not much. As with most things in life, however, the more you put in, the more you get out.
You can transfer funds easily
Once you’ve linked your saver and your transaction accounts, you can move money between them with just a few clicks. Remember, try to keep it one way!
The potential pitfalls with savings accounts
Not meeting the minimum monthly requirements
If you can’t make the minimum deposit required to attract the bonus rate, or if you lose your bonus rate because you make a withdrawal, then your money may not grow at the best rate.
Your chosen bank or institution folds
The Australian Government Guarantee Scheme guarantees deposits of up to $250,000 per person, per institution, so as long as your deposits don’t exceed this limit, you’ll be insured by the Australian government up to these limits. If you have more than $250,000 to deposit, divide it up between different institutions so that you’re protected by each bank’s guarantee.
The products compared in this article are chosen from a range of offers available to us and are not representative of all the products available in the market and influenced by a range of factors including interest rates, product costs and commercial and sponsorship arrangements
InfoChoice compares financial products from 145 banks, credit unions and other financial institutions in Australia. InfoChoice does not compare every product in the market. Some institutions may have a commercial partnership with InfoChoice. Rates are provided by partners and taken from financial institutions websites. We believe all information to be accurate on the date published. InfoChoice strives to update and keep information as accurate as possible.
The information contained on this web site is general in nature and does not take into account your personal situation. Do not interpret the listing order as an endorsement or recommendation from us. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. If you or someone you know is in financial stress, contact the National Debt Helpline on 1800 007 007.