For those looking to save money, there are many options in Australia. But how can you determine which savings account is best for you? In this article, we will compare the best savings accounts in Australia and tell you what factors you should look out for.
Savings accounts are bank accounts that allow you to safely store your money and earn interest at the same time. The advantages of savings accounts include:
- You can withdraw your money whenever you want.
- All of your money is guaranteed by the state.
- You can get interest above inflation to prevent your money from losing value.
The disadvantages of savings accounts are:
- Interest rates are volatile and may fall.
- Some accounts may require you to maintain a high balance or deposit a certain amount.
- Some accounts may charge a transaction fee or account fee.
Here are the factors to consider when choosing the best savings accounts in Australia:
- Interest rate: How much interest your savings account earns you. The interest rate is expressed as an annual percentage. For example, if you have $10,000 in an account with a 1% interest rate, you have $10,100 one year later. The higher the interest rate, the faster your money will grow.
- Bonus interest: Some savings accounts give you extra interest when you meet certain conditions. For example, you may need to deposit a certain amount of money or maintain a certain balance each month. Bonus interest is added on top of the standard interest and is usually valid for a limited time.
- Account fee: It is the fee the bank charges you for your savings account. The account fee is usually charged monthly and is deducted from your account balance. The lower the account fee, the more you save.
- Transaction fee: It is the fee the bank charges you when you withdraw money from your savings account or transfer it to another account. The transaction fee is usually set as a fixed amount per transaction. The lower the transaction fee, the more you save.
- Ease of access: How easily you can access your savings account. Ease of access depends on the services offered by the bank. For example, internet banking, mobile banking, ATMs, branches. The higher the ease of access, the more easily you can manage your money.
Some of the best savings accounts in Australia include:
- ING Savings Maximum Account: You can get 1.35% standard interest and 1% bonus interest in this account. To receive bonus interest, you must deposit at least AUD 1,000 each month and not withdraw money from your account. There are no account opening or operating fees. You can also withdraw money from ING ATMs for free.
- Commonwealth Bank Goal Saver: You can get 0.05% standard interest and 0.4% bonus interest on this account. To receive bonus interest, you must deposit at least 200 AUD per month and withdraw funds from your account no more than once. There are no account opening or operating fees. You can also withdraw money from Commonwealth Bank ATMs for free.
- Westpac Life: You can get 0.2% standard interest and 0.4% bonus interest on this account. To receive bonus interest, you must deposit at least once each month and increase your balance in your account. There are no account opening or operating fees. You can also withdraw money from Westpac ATMs for free.
These savings accounts are suitable options for people living or working in Australia. Before opening a savings account, it may be helpful to compare other advantages offered by banks.