Savings accounts are one of the most secure methods for saving your money. Most of us already have a savings account in some form, but may not be using it to its fullest potential.
Depositing money into a savings account for future access might seem like a no-brainer, however there’s now more to the art of saving money due to the huge choice of savings accounts available.
The type of savings account you choose is dependent on your savings goals and how you spend your money. No two savings accounts are created equal.
For example, if you wanted to split your income between an amount for saving and a budget for spending, you could do this by using different savings accounts.
Savings accounts v transaction accounts
Regular transaction accounts are good for spending. A transaction account (because you’re likely to use it frequently) generally has no or low monthly account-keeping fees.
Many transaction accounts offer you the choice of a debit card, along with a regular bank card and free use of specific ATMs throughout Australia.
These extra benefits are designed so that you can access your money regularly and at little or no cost. The downside is they generally don’t pay a good rate of interest on your savings principal.
That’s OK because there are savings accounts available that are designed for saving not spending. These differ in the fees and charges associated with the type of account.
Savings accounts that are specifically for parking money may have small disincentives so you’re less likely to withdraw your money.
A common type of non-spending savings account is a term deposit. Other interest-bearing savings accounts include reward savers, esvaers, isavers and netbank accounts.
These accounts pay a variable base rate of interest and often a bonus rate too. The rate of interest, minimum opening and ongoing deposits depends on what type of savings account you opt for.
How do I choose a NAB savings account?
NAB understands the nuances of saving money and offers a diversity of savings accounts to cater for a range of needs.
NAB has select savings accounts that are designed for the saver and spender within us all. These accounts acknowledge that you want to earn interest on savings but may need spending money too.
If you want to access your savings whenever you want, without affecting your interest rate, there’s a savings account option for you.
This savings account returns slightly less interest than its counterpart that gives you bonus interest every month that you don’t make withdrawals.
Both accounts, however, charge no monthly account-keeping or transaction fees and let you withdraw and transfer money whenever you want.
If you’re serious about stashing cash and maximising your interest-earning potential, there’s a range of savings accounts to choose from.
These accounts cater to the needs of self-managed superannuation fund account-holders and larger cash investments.
Compared to the save/spend accounts mentioned, these accounts do have minimum deposit requirements.
The great thing about these accounts is they offer higher rates of interest and no account-keeping or transaction fees.
Of course, there’s a regular transaction account if you wanted to split your spending off from your savings profile.
The beauty of the transaction account is that you won’t be charged overdrawn fees if you happen to go over your account balance.
What are the benefits of a NAB savings account?
NAB has devised savings accounts that are flexible by providing options that pay interest on your principal while letting you make regular withdrawals anywhere, anytime at no cost.
NAB also provides the next level of savings account, offering higher rates of interest on larger sums of money if you’re not wanting to touch your savings pile.
Or you can have the best of both worlds and connect a regular transaction account to a savings account type and move money between them at no cost.
How do I apply for a savings account?
The good news is that you don’t have to be an existing NAB customer to apply for a savings account. You can apply online (or in a branch) for any of the NAB savings accounts.
Before you get started with an online application though you’ll need the following information on-hand to streamline the process:
- Passport, driver’s licence or Medicare card for identification
- Proof of age (applicants must be at least 18 years old)
- Proof of permanent residency (Australian citizenship)
- If you’re an existing NAB customer, you'll need your NAB ID number
- For some accounts you may need your tax file number