A savings account is exactly what the term suggests. It is an account separate from your everyday bank account (also known as a transaction account) where you can set aside money for your savings plan. It can also be used as an emergency fund, should you need the extra cash.
A savings account generally has no monthly fee, along with a competitive and ongoing interest rate. There are different types of savings accounts, some with withdrawal restrictions and others with a bit more withdrawal flexibility.
Deciding which savings account is for you depends on your savings plan.
Commonwealth Bank savings accounts
Whatever you’re saving up for, be it a car, a house or a trip abroad, Commonwealth Bank probably has a savings account for you.
Commonwealth Bank’s NetBank Saver account provides unlimited transfers to and from a CommBank everyday transaction account (called the Complete Access account).
This GoalSaver savings account rewards you every time you reach a particular savings goal. Every time you save up each month, you get a variable bonus rate. This helps you build up your savings over time. It also provides a great incentive, as it forces you to make a contribution within a set time frame, which is usually a minimum monthly deposit.
Future Home Saver
This type of savings account is for customers looking to save a deposit for buying a home. The interest is usually the standard variable interest. Generally, it is paid monthly but calculated daily. There is usually a bonus interest (non-compounding), as well. This is, of course, also subject to changes and conditions apply, so be sure to check with Commonwealth Bank’s updated details.
This type of savings account is available for Australians under 18 years old. Should you be interested in teaching your children about saving and financial discipline, you might want to consider getting them a savings account to start them off.
Commonwealth Bank’s Youthsaver rewards its customers with bonus interest if they are regular savers. You can also link your child’s YouthSaver account with yours in order to monitor their transactions.
Perks of getting a savings account
Commonwealth Bank savings accounts generally allow you to enjoy instant transfers online and to access to your money through the CommBank app.
Commonwealth Bank has a reliable mobile banking system that allows you to constantly oversee your transactions and manage their spending. In NetBank, you can easily see and manage your savings – and even set up savings goals – from anywhere, anytime, all through your mobile phone.
You can use the app to transfer money from your savings account to your everyday transaction account, should you need it. Commonwealth Bank usually allows you to choose the term of your term deposit, giving you a lot of leeway in getting an account that suits your savings plans.
How to become a better saver
Savings matters. You never know when you might need extra cash for an emergency. Becoming a better saver will also help you long-term, especially when you’re slowly working towards making a major purchase or investment in the future.
But how, exactly, can we learn to become more disciplined in saving?
First of all, it would be good to create a budget, so you can keep your expenses tracked. It would also be good to think long-term and assess your current financial situation. Once you’ve done this, it will be easier to determine your goals and in creating a savings plan.
To keep you in line, having a savings account might help in organising your short-term and long-term saving goals.
About the Commonwealth Bank
The Commonwealth Bank of Australia, founded under the Commonwealth Bank Act in 1911, started operations in 1912 and is now known to be one of Australia’s leading financial institutions. It is also known to have the largest ATM network.
It also has branches in different parts of the world, such as New Zealand, North America, Europe and Asia.