## What is Real Time Ratings™

Real Time Ratings^{TM} is a world-first rating system that ranks savings accounts based on your savings goals, taking into account your initial and ongoing deposits, and calculating interest on this over time.

Unlike other savings accounts rating systems that grade their products once or twice a year, Real Time Ratings^{TM} results are calculated in real time, as you use the site, making them as up to date as possible.

Real Time Ratings^{TM} gives each savings account a score out of five stars, based on interest earned and flexibility. It factors in your individual savings capabilities such as initial deposit, monthly savings and your savings time period so you can find the best savings account applicable to you.

Achieving your savings goals goes hand in hand with choosing the right account. Real Time Ratings^{TM} does the work for you, so you may compare and find your best savings account with the most up-to-date information.

## How we calculate Real Time Ratings™

Each savings account displayed on RateCity’s savings account comparison table has been assessed using an algorithm that compares the interest earned and features of all savings accounts considered relative to its peers.

The Real Time Rating of each savings account is calculated by adding the Interest Score and Flexibility Score of the product, or simply:

Real Time RatingTM = Interest Score + Flexibility Score

### How is the Interest Score calculated?

The Interest Score of each product is dynamically calculated using the average monthly interest earned by the savings account (minus applicable account keeping fees). The average monthly interest earned is calculated with consideration to the following input fields from the RateCity savings account comparison table:

- Amount of initial deposit
- Monthly deposit amounts (if any)
- Period of savings

The average monthly interest takes into account the following:

- Base interest rate of the product
- Introductory interest rates (only for the months which they are available
- Bonus interest rates (provided the input monthly deposit satisfy the bonus eligibility requirement of the account)
- Account keeping fees (which are deducted from the interest earned)
- If the products interest rates are “stepped” or “tiered”
**Stepped:**Different interest rates apply to distinct portions of your balance, each corresponding to specific tiers.**Tiered:**The highest interest rate tier your balance reaches applies to the entire balance.

The following assumptions are applied to all savings accounts when calculating the average monthly interest:

- Interest earned is paid monthly into the account and not withdrawn over the savings period
- Deposit amounts include the initial deposit plus each regular monthly deposit amount over the savings period is paid on the first day of each month
- Account keeping fees are applied each month (if applicable)

#### Calculating Interest Score from Average Monthly Interest

When calculating the Interest Score from the market of average monthly interest amounts calculated, the following steps are taken to convert this into a score relative to the market of all savings accounts on the RateCity database:

- All savings accounts are ranked based on their total monthly interest. This ranking is then changed into a percentile score. For example, the top 1% of accounts (those with the most flexibility points) are given a 99th percentile ranking.
- Each product is then given a score that fits a normal distribution. This score is based on where it sits within the distribution of all the products, considering that the 'average' product scores a 3 and with variability around that average.
- Finally, scores that naturally fall above 5 based on the distribution are adjusted to be capped at a maximum of 5.

### How is the Flexibility Score calculated?

Real Time RatingsTM uses discrete scoring (i.e. having a specific feature is worth a specific number of points) and the overall Flexibility Score is based on the aggregated total of all points scored across all features assessed.

For savings accounts, all of the following positive features are scored equally:

- Can you access savings via an ATM
- Can you use a debit card to make purchases from the savings account at merchant via EFTPOS
- Can you transact on the savings account using online banking
- Can you transact on the savings account using phone banking
- Can you transact on the savings account at a branch
- Can the savings account be opened as a joint account (i.e. multiple account holders)
- Can you make unlimited withdrawals on the account
- If there are no fees for transfers made using online banking
- If there are no fees for transfers made using phone banking
- If there are no fees for making purchases using EFTPOS
- If there are no fees for making purchases using EFTPOS overseas
- If there are no fees for making a deposit in branch
- If there are no fees for making a withdrawal in branch
- If there are no fees for making a withdrawal at an ATM

The flexibility points scored by a product is then converted into the Flexibility Score using the following steps:

Adding up all the flexibility points for each savings account being evaluated.

All savings accounts are ranked based on their total flexibility points. This ranking is then changed into a percentile score. For example, the top 1% of accounts (those with the most flexibility points) are given a 99th percentile ranking.

Each product is then given a score that fits a normal distribution. This score is based on where it sits within the distribution of all the products, considering that the 'average' product scores a 3 and with variability around that average.

Finally, scores that naturally fall above 5 based on the distribution are adjusted to be capped at a maximum of 5.

#### Applying Weights to Calculate Real Time Ratings

Following the calculation of the Interest Score and the Flexibility Score, a Real Time RatingTM is then calculated by weighting the Cost Score and the Flexibility Score and adding these scores together to come up with the Real Time RatingTM for the product.

This is done using the following weights with accompanying examples:

Cost Score | Flexibillity Score | Total Score |

90% | 10% | Real Time RatingTM = 4.33 |

Cost Score of 4.5 x .90 = 4.05 | Flexibility Score of 2.8 x .10 = 0.28 |

As both the Cost Score and Flexibility Score are out of 5, once each is weighted and added together the maximum possible Real Time RatingTM score for a savings account is 5.

### How often are products reviewed for Real Time Ratings purposes?

Real Time RatingsTM are calculated on an hourly basis based on the information that is available in the RateCity database..

### Does RateCity rate all products available in the market?

We endeavour to include the majority of product providers in the market and to compare the product features most relevant to consumers in our Real Time RatingsTM. However, this process is not always possible and it may be that not every product in the market is included in the rating nor every feature compared that is relevant to you.

# How RateCity leaderboards work

We’ve built these leaderboards to help you quickly see what are the top banking products in each of the key categories.