In an era of historically low interest rates, some savings accounts have become nothing more than a safe place to park your money. However, there are still some competitive rates out there, if you know where to look.
RateCity research shows that since June 2019, the average savings account rate has fallen from 2.66 per cent to 1.43 per cent for introductory savers, and from 1.55 per cent to 0.66 per cent for conditional savers (as of 24.07.2020).
And with inflation currently sitting at 2.2 per cent, this means it’s never been more important to compare your options and research which providers are offering the most competitive savings accounts.
But it’s not just the interest rate that you should look at. Of the big four banks, only Westpac is offering a savings account with rates above 2 per cent. Its Life Account comes with a competitive interest rate of 3 per cent, but the savings account is only available for Australians aged under 29.
This is why it’s crucial to read the fine print around your financial products and not to just look to the interest rate.
Thankfully, RateCity has done the heavy lifting for you, by ranking some of the most competitive savings accounts in the marketplace for both adults and kids.
Savings accounts for regular savers
If you’re the type of saver who wants to earn a continuous interest rate, and is comfortable meeting provider conditions, a regular, or conditional savings account may be worth considering.
Savings accounts for standard savers
If you’re the type of person who doesn’t like jumping through banking hoops, or can’t meet specific conditions on a savings account, a standard savings account may be more your speed. Keep in mind that the higher interest rates are typically for a short term of a few months and may revert to a lower base rate.
Savings accounts for little savers
One of the easiest ways to teach children about money is to do so through a kids’ savings account. But they can come with a range of fees and extra costs if you’re not careful. Here are some of the most competitive kids savings accounts on the market.