Three types of savings accounts to choose from

There are three basic types of savings accounts for savers to choose from.

There are high interest (usually online) savings accounts that offer a good rate of interest with limited transaction services. Mostly you need to link a transaction account to put money in and out of these high interest savings accounts.

There are also term deposit accounts which lock up your money for a set period – often six months or 12 months. Savers can often get a better rate of interest by locking their money away for a longer term.

Thirdly, a new kind of savings account is now appearing in the Australian market – the notice saver account. A notice saver account requires the account holder to give 31days notice to withdraw cash.