Finding a savings account that offers a decent return in 2020 can feel a lot like looking for a needle in a haystack. However, the highest rates on the market may be accessible to you if you’re willing to consider switching providers.
Many Aussies have stayed loyal to the bank they’ve been with since they were little kids or young adults. But by not doing a little research into what other rates may be available, you could be missing out on greater returns on your savings.
Only yesterday, Macquarie Bank slashed the introductory rate on its standard savings account by 50 basis points to 1.50 per cent. Further, last week Australia’s biggest bank, Commonwealth Bank, cut its savings account rates out-of-cycle by as much as 0.10 per cent.
Meanwhile, RateCity research shows that despite the Reserve Bank of Australia cutting the cash rate to a record low of 0.25 per cent, there are still 19 savings accounts offering interest rates above 1.50 per cent. There are also 75 savings accounts offering rates above 1 per cent.
In fact, one of the highest savings rates on the market right now of 3 per cent comes from Westpac - but there’s a catch. It’s only available for customers aged up to 29 years. Younger Aussies can take advantage of this competitive rate to build up their savings for a property deposit, to travel or even get through University.
This shows that it could literally pay to do your due diligence around what rate your bank is offering, and if others can beat it.
Luckily, RateCity has done the hard work for you by ranking some of the most competitive savings accounts in the marketplace for both adults and kids.
Savings accounts for conditional savers
There are some seriously competitive interest rates out there for Aussies who are willing to jump through a hoop or two. This means meeting a provider’s conditions on its savings account, such as a minimum deposit balance each month or no withdrawals.
Savings accounts for standard savers
For those who have a set-and-forget mentality when it comes to their savings, a standard savings account with a competitive ongoing rate may be a better suit. You won’t need to meet certain conditions to earn your interest rate, and new customers are rewarded with a high rate for an introductory period.
Savings accounts for little savers
Whether you’re teaching your kids financial literacy or just helping their pocket money grow, a children’s savings account can still come with a competitive interest rate – if you know where to look. Just keep an eye out for any potential fees and conditions that an adult savings account typically doesn’t come with.