Get back in the black this party season

About this post

We are well and truly into summer and fast approaching the party season. With the endless Christmas parties and New Year's Eve, these are undoubtedly the year's busiest months on the social calendar.

All the extra fun and party frivolity, however, 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 to boost your bank balance while you kick up your heels.

There are a number of online savers offering rates above 5 percent at the moment, such as UBank's USaver with a maximum rate of 6.11 percent, or ING Direct's Savings Maximiser at 6.1 percent for four months (at the time of writing). Just be aware that to be eligible for bonus interest with some savings accounts certain conditions must be met. For instance, the USaver account requires a minimum monthly deposit of $200 to gain the bonus rate.

Of course there are hundreds of savings accounts out there, and the best way to find the one that suits you is by searching and comparing interest rates, fees, conditions and anything else on your checklist of requirements.

The great thing about a lot of these savings accounts is that they encourage you to set up regular contributions through direct debit. So you could be making fortnightly or monthly deposits into your savings, therefore boosting not just your balance but also the amount of interest you earn, while you boogie on the dance floor.

For example, if you start a UBank USaver account with an opening balance of $5000 and save $200 a month, you could earn over $380 in interest have a final balance over $7500 – more than enough to fund next year's festivities! To see how much you could save, try using a savings account calculator.

Term deposits are also a great way of making your money work harder, often paying more interest than a savings account. Unlike savings accounts, however, you may not be able to access the money for the duration of the term deposit (without penalty) – this can range from 30 days for a quick interest earner to five years for longer-term goals.

It is also likely that banks may introduce promotional rates or specials for the holiday season. Rather than wait, you should research the best options on offer right now, to ensure your money works hard while you party hard.

This is an information service. By browsing on the website and/or using our search tools, you are asking RateCity to provide you with information about products from multiple financial institutions. We will try to show you a range of products in response to your request for information. The search results do not include all providers and may not compare all features relevant to you, for further details refer to our FSCG. The rating shown is only one factor to take into account when considering these products. We are not a credit provider, and in giving you product information we are not making any suggestion or recommendation to you about a particular credit product. If you decide to apply for a product, you will deal directly with a financial institution, and not with RateCity. Rates and product information should be confirmed with the relevant financial institution, and you should review the PDS before you decide to purchase. See our terms of use for further details. This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you.