17th March 2010
Does your bank want to be your BFF?
The banks take the battle for Gen Y’s savings to a new frontier, using social networking to become the internet generation’s new BFF. The spike in the cost of wholesale funding has led to unprecedented...

17th March 2010
Online savers up the ante with generous rates
We love to hate them, but the banks are doing their best to woo us, or at least to convince us to entrust our savings to them. The most obvious manifestation of the banks\\' attempt to snare a bigger slice...

1st February 2010
Unfair or fair game: Why women struggle to save
Most Australian women are struggling to save money on a regular basis. ANZ research found that 56 percent of women do not save money on a regular basis, with 58 percent of women having less than $5,000...

27th January 2010
Saving: Get more for your money in 2010
Happy new decade! If you were part of the credit binge that ended in the global financial crisis, say goodbye to living beyond your means and kick-start 2010 with a high interest savings account.

27th January 2010
Learning to love budgets: Taking the pain out of sticking to a budget
Spending money is easy. Saving money in a savings account seems to be a little harder. However, learning to create a budget – and sticking to it – can mean the difference between struggling financially...

14th January 2010
Savings: What the advertisements won’t tell you
The banks and non-banks who spend the most money advertising their savings accounts are not necessarily the ones that deserve your loyalty. Do your own research and comparison shopping to ensure you end...

1st December 2009
Don’t let the banks steal your savings!
Not all saving accounts are equal. When it comes to how they calculate and pay interest, it's definitely worth checking the terms and conditions before you open a new savings account.

1st December 2009
New Year’s Resolution: More money from your savings
2010 will be the year for better interest rates on savings accounts so why not take advantage by starting up a savings plan for your New Year's Resolution?

1st December 2009
Gen Z teens suffer savings woes
Generation Z have started to worry about their own financial future, with most opening savings accounts to prepare for expenses that they will face in adulthood, according to a new report.

1st December 2009
Save more with branchless banking
Try this quick quiz. When was the last time you stepped inside a bank branch? If you can't remember, chances are branchless banking for your savings account is for you.

1st December 2009
Is Australia the frugal nation?
The global financial crisis – the only financial event to earn its own acronym, the GFC – sparked a wave of frugality among Australians that is still being felt as the economy slides into recovery...

1st December 2009
Savings sickness sweeps the nation
Most Australians only tend to use a savings plan for specific goals, and once they are met, slip back into bad habits. Once we have saved enough and paid off all the bills, how can we maintain the motivation...

1st December 2009
21st century savings: How to win back your money and time
Technology is becoming even more important for Australian savers, as the popularity of electronic funds climbs. There is still room for many to sign up to new and safe methods of managing their finances,...

1st December 2009
Kids accounts: Find a piggy bank with real grunt
Some children\\'s savings accounts pay next to no interest so make sure you find your little ones a winning piggy bank. It\\'s worth shopping around for an account that pays enough interest to encourage...

1st December 2009
$46 billion under the bed: Australians lose out by stashing cash
The time for Australians to break your piggy bank and open a high interest savings account is no. The Bankwest Cash Report 2009 discovered that a record $46 billion in coins and notes were circulated this...

1st December 2009
Savings accounts: Should I stay or should I go?
When is it wise to switch savings accounts and when should you simply stay put? Your savings are the cheapest source of money that our banks can get their hands on, so expect robust competition to continue,...

1st December 2009
Banks battle for bigger slice of the savings cake
Among the many negative side effects of the global financial crisis, there was also a positive trend – since the GFC begun to bite, Australians have been saving more than they used to.

1st December 2009
Saving for the Jones’s: Aussies showing off their savings success
Australians are more worried about their neighbours finding out their financial hardships, than actually going through the hardship itself, according to a new international survey.

1st December 2009
Read the fine print on high interest savings account
There are plenty of good deals on savings at present but getting the best return means reading the fine print. One of the key aspects to look out for when comparing savings accounts is whether an advertised...

1st December 2009
Pint-sized savings attract bonus rates
Good money management is one of the most valuable skills our kids can learn, and with juicy rates of interest available on junior savings accounts, the small fry have good reasons to save.

1st December 2009
Online or old-fashioned savings accounts: What’s best for you?
Since the introduction of the first online savings account by ING Direct in 1990, Australians have taken to online accounts like ducks to water. And there is no doubt online accounts can help you save...

25th November 2009
Dreaming of a debt-free Christmas?
In the lead up to Christmas last year Australian credit card debt had climbed to more than $45 billion. One way of avoiding the Christmas debt trap is to set up a Christmas savings account fund.

25th November 2009
Rising food costs make dents in your savings
Rising OECD figures is putting pressure on Australian households. Learn the smart way to dodge hefty grocery bills and damage to your savings accounts.

25th November 2009
Financial fitness: Get fit for summer and save money
Make your body and your wallet fit this summer by checking out the latest savings accounts. Thanks to our recovering economy, interest rates are increasing - good news if your money is sitting in a high...

18th November 2009
Family savings: Teaching your kids the basics
The way that parents save money – especially using a savings account – will leave a lasting impression on their children’s saving habits, and new research from Bankwest shows parents are taking this...

18th November 2009
Did your savings account cause the financial crisis?
Westpac CEO Gail Kelly put forth recently that if we all had more money stored away in savings accounts, Australia could have escaped the global financial crisis.

18th November 2009
Christmas accounts – The Scrooge of savings accounts?
How do Christmas savings accounts measure up to the best deals on the market? A range of specially designed Christmas savings accounts are available but they can be more like Scrooge than Santa Clause....

16th November 2009
Christmas cheer: Keep festive without dipping into your savings account
If the impending expense of Christmas has caught you by surprise, use our strategies to get through the festive season without maxing out your credit card or plundering your savings account. Consider opening...

16th November 2009
Who’s paying the big rates on savings accounts?
When it comes to savings accounts, Australians are spoilt for choice. There's a smorgasbord of banks, credit unions and building societies to choose from, casting your net wide can boost the returns on...

4th November 2009
Spring clean your bank for a better return
As inflation and interest rates creep up, it’s worth sweeping any spare cash into a savings account to make your money work harder. What are the best strategies for working your spare cash harder in...

4th November 2009
Gen Y savings accounts - Money maker or savings fads
Gen Y is building its reputation of being the “bad saver” generation, with thousands resorting to lending between friends to meet debts and expenses. With a wide range of savings accounts invented...

4th November 2009
Bye Bye Savings Account Fees?
We might be seeing a trend to get rid of fees on transaction accounts but what’s happening with savings account fees? Consumer groups praised the National Australia Bank’s recent decision to abolish...

21st October 2009
Top rated savings accounts: What makes them stand out from the pack?
What it is that makes the top online savings accounts stand out from the crowd? Online savings accounts are rapidly growing in popularity. But with an increasing number on offer there are several things...

21st October 2009
Five barriers to savings and how to beat them
Avoid the five most common speed humps when racing to your savings goals. Opening a savings account can be a good discipline for putting a stop to your spending habits. However, the biggest hurdle most...

21st October 2009
Why Gen Y is broke: $2.6B lent to friends
Generation Y is struggling to manage their finances, with the vast majority resorting to borrowing and lending informally between friends and peers, a St George Bank survey has found. Just what will it...

14th October 2009
Government to end savings tax drag?
Savings accounts may become a much more attractive place to keep money as a result of the Federal Government’s current tax review. Tax and inflation are the traditional enemies of any serious saver.

14th October 2009
When saving too much is losing you cash
Can putting too much into your savings account be bad for you, or is it just a myth that retailers want you to believe? A guaranteed method of gaining profit from your savings is paying debt, which normally...

7th October 2009
Term deposits Vs savings accounts: What's best for you?
Where should one stash their cash: savings accounts or term deposits? Australia may have escaped the full grunt of the GFC, but the new mood of thrifty restraint appears to be hanging around a little longer....

7th October 2009
First home or holiday: Money management with savings priorities
Reach your savings goals by effective prioritising and savings account management. The way Australians prioritise their savings goals can speed up or slow down how soon you reach the finish line. When...

30th September 2009
Tax refund – Key to your savings fortune
It's tax refund time, which means millions of Australians are pondering whether to spend their payment at the shops, or put it safely away into their savings accounts.

30th September 2009
Australia's worst savings accounts
How do you know when your savings account is on the nose and what should you do about it? The answers to the following questions will help you to determine whether your existing savings account is worth...

25th September 2009
New study: Gen X might never own homes
Are the terrible saving habits of Generation X hindering their hopes of home ownership? A study has shown that Gen X is unlikely to ever own a home because their baby boomer parents have spent their inheritance....

25th September 2009
Fast ways to grow your savings this party season
All the extra fun and party frivolity in Spring can end up putting a strain on the purse strings. Which is why keeping your hard-earned cash in a high interest savings account will ensure you continue...

16th September 2009
Earn easy money by switching
You could be missing out on thousands of dollars in interest by sticking with the same old savings account. Misguided loyalty to your bank or just plain laziness could be holding you back from achieving...

16th September 2009
The latest saving fad is here
UBank is currently promoting the benefits of saving through the catch-cry "Saving is the new spending". Choosing the best savings account, however, can be a daunting task, with many factors to take into...

3rd September 2009
The age of online savings accounts
We've become so used to thinking of banks as one homogenous mass that we're at risk of missing the opportunity to cash in on the differences. And when it comes to savings accounts these differences can...

3rd September 2009
Start your summer holiday savings now
With record low overseas air fares across the country, your dream holiday may be just around the corner with a smart savings plan. The right savings plan could mean the difference between lounging on white...

3rd September 2009
How to get more out of your savings
There are many different ways you can compare savings accounts and choose the right savings solutions that work best for you. Here\\'s how three Australian households have used the economic downturn to...

30th August 2009
Make Your Wedding Savings Worth It!
With spring upon us and romance in the air, it's time to start thinking about saving up for that special day. But The average cost of weddings in Australia is also on the rise, and Bride to Be magazine's...

30th August 2009
Earn 12.84% interest saving for your first home
If you thought saving a deposit for your first home loan will take longer than four years, than compare First Home Saver Accounts and you may find yourself mowing your own lawn much sooner than you thought....

13th August 2009
Reclaim thousands on schooling!

6th August 2009
Lower inflation equals a great time to save

5th August 2009
When to say “no” to your bank

5th August 2009
How to stay healthy and wealthy

28th July 2009
Survive unemployment without losing your savings

28th July 2009
Growing your savings as easy as CLICK

20th July 2009
Spending Style: How to shop and save

20th July 2009
Australians Slapped $1 billion in Bank Fees

14th July 2009
Recession bargains everywhere

14th July 2009
Saving: Getting ahead and staying there

13th July 2009
Loyalty Lures: Making the most of reward programs

13th July 2009
Are we really paying too many taxes?

8th July 2009
Tax cuts: Happy new financial year

16th June 2009
Turn tax time into your own stimulus package

3rd June 2009
Are bonds a good way to save?

3rd June 2009
Billions of unclaimed money up for grabs

25th May 2009
The recession test - Will you be on top or jobless?

22nd May 2009
Financial Fitness: How do you measure up?

20th May 2009
The time to save is now

20th May 2009
Silver savers go for gold

18th May 2009
Paid maternity leave brings financial relief to Aussie families

18th May 2009
Rainy Day: Budget affects retirement savings

13th May 2009
WHAT THE 2009 BUDGET MEANS FOR YOUR FINANCES

8th May 2009
Innovation Awards: The future of banking

6th May 2009
Better together: Savings and share investing

6th May 2009
Savers and Sinner: Finding the right account

23rd April 2009
Best Ways to Save In a Recession

21st April 2009
Squeeze More Out of Your Pay Packet

15th April 2009
How to build a savings buffer

15th April 2009
Savvy ways to spend your bonus payments

9th April 2009
Debts and Doubts: Managing your money

31st March 2009
Money Markets: Fresh food savings

31st March 2009
Check ‘honeymoon’ savings offers carefully

30th March 2009
Four steps to online auction success

30th March 2009
Gen-Y Target: SmartyPig crosses Facebook with Savings

25th March 2009
HECS Debts: How much can you save by paying upfront?

25th March 2009
Interest rates on pause: What next for savers?

23rd March 2009
Earth Hour Efficiency: Switch off and save

23rd March 2009
Alternative Ways To Make Money

11th February 2009
A walk down the aisle to money & matrimonial bliss

3rd February 2009
Valentine’s Day: Love’s price tag

21st January 2009
Thou shalt not spend - The 5 Savings Commandments

16th December 2008
Best savings deals: Watch your interest

9th December 2008
Savings Accounts: How to beat lower savings rate - Compare savings accounts

25th November 2008
Get Bonus Interest: Read the fine print

22nd October 2008
Inflation blowout 2008: what items have risen the most?

8th October 2008
Wedding trends: White wedding or civil celebration?

16th September 2008
How to save and buy a car ‘guilt free’

9th September 2008
How to teach your kids to save

19th August 2008
10 Tips to Saving at the Supermarket

30th July 2008
How to be cashed up and risk free

15th July 2008
Alternative Investment Round-up

10th July 2008
Tax Cuts - Trash or Treasure?

1st July 2008
Tax windfall? Resist the urge to splurge

18th June 2008
How to make your dream ski trip a reality

4th June 2008
Toil-to-treasure: make your tax refund work for you

26th May 2008
10 cheap and cheerful ways to entertain

21st May 2008
Is your bank ripping you off with bank fees?

13th May 2008
Top 5 Ways NOT To Spend Your Tax Cut

28th March 2008
Slash overseas call costs

13th March 2008
Lunchbox Diet: Save money, shed kilos

11th February 2008
Beware the transaction account rip off

22nd November 2007
Top ten tips to get rich slowly

26th October 2007
Why it's never too early to start young

4th October 2007
Dollar wars

21st September 2007
Cashed-up for Christmas? Plan now or pay the price

16th July 2007
Choosing an online savings account

15th June 2007
Online Savings - Beware the Devil in the Detail

15th June 2007
Online Savings

8th May 2007
Avoid the budget bombs

Australia has seen a rapid increase and fall in interest rates over the last year which, whilst initially being bad news for borrowers, now poses even greater difficulty for all the savers out there. As the Reserve Bank of Australia (RBA) continues to adjust rates(Cash Rate at 4.25% as of 20th January 2009) the right savings account can make a big difference on the interest you can earn.

Once you’ve compared the interest rate range, the next thing to look at is accessibility. Generally, online savings accounts, whilst offering the highest interest rates, don't provide you with the same access options that a traditional savings account would. As a result, you need to weigh up preferences for greater access against higher interest.

For the determined saver, the access issue isn't a problem as these accounts can help you keep away from spur of the moment purchases. However, if you require immediate access to your funds, then a day to day account with an attached sub-account is probably a better idea. 

Sometimes you will see an account quoted with a nominal and an effective interest rate. The difference between these two is that the effective rate takes into account interest payments in its calculation to determine the "true" rate of interest earned.

Take an account that pays interest annually. A $10'000 investment in an account paying 5% will earn $500 interest ($10'000 x 5% x 1 year). As a result, the account’s nominal and effective rates are the same, because the investor’s balance does not improve as a result of interest payments.

An account that pays interest monthly (like most in Australia) is a different story. Take the same example above, but instead of interest being paid annually, make it monthly. This is known as compounding interest and will increase the effective rate of the account. Just by having the interest paid monthly, the total interest earned over a year increases by $11.00. This may not seem like much, but over time the compounding effect will make a significant impact on your savings. 

How the banks calculate interest rates

The interest rates that institutions offer on your savings accounts are influenced by a number of different factors. The RBA, who are in charge of Australia's Fiscal Policy set the official cash rate which directly affects the cost of funds for institutions, which then determines what they will charge/pay you for yours. The RBA meets once a month to discuss the issues that affect the Australian economy and make their decision, announcing it on the first Wednesday of each month.

The RBA cash rate is raised during growth stages of the economic cycle. The purpose of this is to raise the cost of funds in an attempt to keep growth sustainable. If the growth that is occurring is un-sustainable then it places Australia at the risk of increasing inflation. Inflation has the effect of decreasing the value of money because it is a situation where there is too much money chasing too few assets.

During a downturn in the economic cycle, the RBA will lower rates in an attempt to find a level that encourages business to access cheaper funds to encourage growth. This also discourages our economy from slipping into a recession which is defined as two consecutive quarters of negative growth.

It’s obvious that what is good for a saver is bad for a borrower. If rates are high, you will earn a good return on money in the bank, however, if you need to borrow you will be paying a lot more. On the flip side, if rates are low, your savings won't earn much at all but borrowing costs decrease immensely.

Australia has a wide array of financial institutions that handle personal deposits, such as Banks, Credit Unions, Building Societies and Online institutions.  

The main difference between Banks and Credit Unions/Building Societies is that Banks exist to make profit for their shareholders, whereas a Credit Unions/Building Societies goal is to deliver 'value' to their customers in the form of better rates and lower fees.

The main difference between Banks and Credit Unions/Building Societies is that Banks aim to make profit for their shareholders, while Credit Unions/Building Societies try to deliver 'value' to their customers with competitive rates and lower fees.