When it comes to your finances, any decision you make is a crucial one. Choosing a savings account is no different. And so, if you are at that crossroad, torn between a number of different banks, it would be best for you to compare these features:
- The interest rate, how frequently you receive the interest and how long any honeymoon or introductory interest rate applies
- Minimum and maximum account balances
- Account-keeping fees
- What interest you miss out on if you withdraw money and what rewards you receive if you deposit money regularly
- Whether a linked account is needed.
Authorised Deposit-taking Institutions
You should also see whether the account is presented by an Authorised Deposit-taking Institution (ADI). ADIs are overseen by the Australian Prudential Regulation Authority (APRA) so your money is more secure with them. Find out whether the group offering the account is on APRA’s list of Authorised Deposit-taking Institutions.
If you’re earning a low income, you just might qualify for a savings program, that is being offered by charitable groups. For more information, you can take a look at other programs for low earners.
Find a basic bank account
A number of financial institutions offer basic bank accounts that have:
- No account-keeping fees
- Free monthly statements
- No minimum deposit amounts
- No overdrawn fees.
You can find which financial institutions offer these essential bank accounts on the Australian Bankers’ Association’s Affordable Banking website.
How savings accounts can help you save
Savings accounts are geared to help your savings grow at a faster rate. They offer a higher interest rate than rudimentary transaction accounts. Some also make it tougher to access your money so you are not tempted to withdraw it. With more money locked away, you would be able to save up faster for that home, car or dream getaway.