With Australia in recession, interest rates at record lows, and the new financial year right around the corner, you may be wondering if it’s time to start hiding your cash under the mattress.
Thankfully, there are still a range of helpful and competitive transaction and savings accounts on the market – you just need to do a little research.
If you’ve been with the same bank since you were a child, it’s never been a better time to shop around and search for more competitive accounts to park your cash in.
Sneaky costs in your bank account
Perhaps your parents signed you up to a bank account when you were still in school and you’ve never taken the time to think about it. You may be losing money each month on avoidable fees just by missing the fine print.
Of the big four banks, Westpac and ANZ charge account keeping fees of $5, and Commonwealth Bank charges $4, if you don’t deposit $2,000 each month in their transaction accounts.
This is easily avoidable if you’re depositing a regular salary into your bank account. But, say you’ve lost your job due to the impacts of the COVID-19 pandemic and/or recession, or you have two transaction accounts and don’t juggle between the two, you may be charged a fee just for the privilege of keeping your cash in that account.
There are a range of transaction accounts that don’t charge pesky fees like these, proving that doing your research in these uncertain times is more invaluable than ever.
Here is a list of Gold Award-winning bank accounts that are RateCity approved.
RateCity Gold Award-winning bank accounts
Where savers can boost their nest eggs
The Reserve bank of Australia has kept the cash rate on hold at 0.25 per cent since March this year.
However, that hasn’t stopped almost 40 banks cutting at least one savings account rate since May 1st, according to RateCity research.
Of all the savings accounts on the RateCity database, 76 per cent now have maximum rates under 1 per cent.
During a time when savings accounts are unable to keep ahead of inflation (currently at 2.2 per cent), it’s never been more important to consider ditching the bank loyalty and shopping around for more competitive savings accounts.
There are a few things to consider when shopping around for savings accounts, including:
- No monthly fees;
- Accessibility (online banking); and
- Rates above or near inflation.
This is why many Australians are turning away from traditional brick-and-mortar banks and looking towards online or neo-banks, like ING or 86 400, for their savings accounts. Not only do they offer convenient access through tech-savvy apps and online banking, but by eliminating the need for branches, they can reduce overheads and offer more competitive interest rates.
To help you compare, RateCity has compiled a list of the best savings accounts for June 2020.
RateCity Gold Award-winning conditional savings accounts
RateCity Gold Award-winning standard savings accounts