If you’re looking for a savings account to help you securely safeguard and grow your wealth, it makes sense to start by comparing high interest savings accounts. The higher the interest rate on a savings account, the faster your wealth can potentially grow.
Compare by base rate
A good place to start your search for a high interest savings account is by comparing the base rates of the different savings account options. A savings account’s base interest rate is the percentage by which the wealth in your account should grow each month, regardless of other factors.
Compare by maximum rate
The next factor to compare between the available high interest savings account options is the maximum rate. As the name implies, this is the highest possible rate of interest you’ll be able to earn on your savings with this account.
Some accounts offer a high introductory rate, allowing you to quickly build up your wealth when you first open the account, before revering back to the base rate once this introductory period expires. Others offer a high bonus rate that can last indefinitely, provided you fulfil the account’s conditions, such as making regular deposits and minimal withdrawals.
Compare by maximum interest earned
Rather than comparing savings accounts by their high interest rates, you can also calculate the value of the maximum interest you could potentially earn per month your savings. Remember that depending on the savings account’s conditions, you may only be able to earn this maximum interest for a limited length of time.
It’s also important to compare the amount of interest you could earn with a high interest savings account to the cost of any fees charged by the account. If the account will likely cost you more in fees than you’ll receive back in interest, then it could be worth comparing a few other options as well.
Compare extra features
Depending on your personal financial goals, as well as your household’s unique needs, you may find certain features and benefits useful with your high interest savings accounts. For example:
- Prefer face to face conversations? Compare high interest savings accounts with branch access to discuss your savings in person.
- Need easy access to your savings? Some savings accounts can be conveniently accessed via ATMs or EFTPOS.
- Want money management at your fingertips? Compare high interest savings accounts that offer internet access, or that include a BPAY facility for quickly and simply paying bills using your savings.
Compare high interest savings accounts
When comparing high interest savings accounts, always keep in mind that the best high interest account for one person’s financial situation may not be the best account to help you manage your wealth and reach your unique financial goals.
It’s always worth making a detailed comparison of the different high interest savings account options available, basing your final decision on how they’ll affect your household’s finances. If you’re uncertain of which option to choose, consider contacting a qualified financial adviser.