Savings Incentive

When it comes to saving cash, we can all admit to falling off the wagon sometimes. Our banks know this habit as well as we do, which is why many savings accounts have added an extra feature to help us stick to our goals.

Savings incentive accounts usually add a bonus interest rate when we deposit a certain amount of money every month without making withdrawals. For example, a typical account may require you to save $1000 a month to earn an extra 1 or 2 interest points.

Some savings accounts will let you choose your goal – say $5000 for a holiday, $20,000 for a car, $50,000 for a deposit on your home loan, for instance. This will make your incentives seem that much more real, and give you something to picture every time you save a few dollars.

At the end of the day, no matter how many incentives you have, the biggest factor is you. If you’re serious about saving, consider putting away your cash in high interest online account, or even term deposits to avoid the temptation of spending.

A savings schedule is crucial in predicting how much you need to save to reach your goals. For example, if you want to save $5000 for renovations in 12 months’ time, having a 5 percent savings account will require you to save at least $407.20 a month.

And never underestimate the incentive of fun. Many of these accounts will employ colourful graphs, flashy reminders, and even tools for your smartphone to give you more reasons to save. While this can sound cheesy, the reality is that it works. For further savings incentive have a go at using RateCity's savings account calculator, this will help keep you on track and you might be closer to your savings goal than you think!

We all need a hand to reach our savings targets, so compare savings incentive accounts online to see which one can give you the highest boost. Then stick to your plan and begin moulding good habits that can help you save a lifetime.