Savings account catches can cost you plenty

Nearly one-third of savings accounts with $1,000 or less in them earn no interest at all.

Some accounts still have stepped interest rates. That means that you only earn the higher interest on a portion of the balance.

And account-keeping fees can be a big drag on savings as well: a $5 monthly charge on a $2,000 balance is like paying 3 per cent interest – on your own money.

Online bonus saver accounts often require making regular deposits and no withdrawals, but the interest may not be any better than you'd get on an account with no conditions. And you-beaut savings rates are reserved for new customers, or have onerous conditions.

Source: Sydney Morning Herald

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