The best way to spot a great savings product

The best savings products are not always the ones you think. Even the ones with the highest interest rates can see you losing your savings potential if it doesn't suit your habits and needs.

Online Savings

These accounts are usually considered the best savings products because of the competitive rates they offer. However, most do not allow you to spend from the account, so you will need to keep some cash for your every day purchases. Transferring money back and forth can be a hassle for most, and can impact the interest rate you get, which is why online savings accounts are more suitable if you want to store money away to be topped up regularly.

Transaction Accounts

Even with close to nothing rates, many Australians know that transaction accounts are the best for them because it lets them move around their cash quickly, regularly, and cheaply. On standard savings accounts, these transactions would attract high fees, making transaction accounts the perfect cash storage solution for those who want to save on the go.

Children's Savings Account

Sometimes the best savings product is made for a particular saver. In this case, that saver could be your child, nephew, niece, or grandchild, and a Children's savings account could be the perfect way for them to develop rewarding savings habits. With low maximum limits for deposits, what seems like play money to you could inspire a child to cherish savings for years into their adulthood.

And the most important thing you need to know about the best savings products – is you. Your good and bad habits can make any product churn your savings into wealth or see it stagnate as lazy cash.

Habits to follow:

• A regular savings plan that forces you to stick to weekly/monthly/yearly goals will not only keep you on track, but reduce unnecessary spending.
• Direct your income into high interest accounts and let yourself withdraw basic sums for weekly expenses and some pocket money.
• In crunch time, lock some money away in term deposits to really quash temptation.
• Tell the world – every saver gets motivation from telling others about their savings goals.
• Compare savings accounts regularly to make sure you're always getting the highest rate for the product that suits you.

The table below displays savings accounts with bonus rates. Note, 'max rate' includes base rate plus bonuses if applicable. Conditions may apply. For more details, click on the product link.

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