Savings accounts are often tailored to different lifestyles, so it’s important to know what features you’re looking for when you compare them. There is no single ‘best’ account, but some careful comparison using online sites such as RateCity will help you find one to suit your needs.
There are certain things you should consider when you are comparing savings accounts. These will help you narrow down your search and find one that is going to best suit your individual needs and requirements;
The interest rate is important if you like to watch your money grow. Interest rates vary greatly between types of accounts and the amount that you’ve saved. Traditionally, the highest rates were only available to rich folk with a tonne of cash to deposit. Thankfully with the advent of online savings accounts, high rates are available regardless of how much you have to start with. Be sure to check what rewards, if any, you will get for regular deposits.
Account keeping fees
Account keeping fees need to be considered, so make sure that the extra facilities you’re paying for are worth it. Most online accounts have minimal fees, but it is important to check.
Think about the facilities you need, such as internet banking, cheque, ATM, BPay and GiroPost, because they are unavailable in many accounts. The usual trade-off is less facilities equals a higher interest rate. Many people find this to be a fair deal, but consider your own needs and find an account that is just right.
Some savings accounts will have set minimum and maximum account balances that you will have to adhere too. Make sure you clarify the banks requirements to see if you qualify for their minimum amount and are happy with the maximum amount set.
Check with the institution if you will be charged, or lose interest, if you withdraw money from your savings account.
In some instances you will require a linked account to make deposits from one account to another.
Lastly, if you’re a student or a pensioner, you may qualify for special accounts with free facilities and bonus rates.
Refer to our savings accounts guide for up-to-date information and the table to the right for a list of some of today’s best online savings accounts. And be sure to crunch the numbers with our savings account calculator.
Related search: High interest savings accounts.