Opening a savings account is a safe and simple way to watch your money grow. Whatever your savings goal is, choosing a savings account is a subjective experience that will ultimately be determined by your personal preferences.
Not all savings accounts are created equally, and to help your savings grow you’ll want to choose an account that:
- pays the maximum interest;
- charges minimal fees;
- includes helpful features;
- and offers account flexibility.
To help you achieve your savings goals, RateCity has put together a list of the top 8 account features to keep in mind when choosing between savings accounts:
Top 8 Savings Accounts Features:
- Competitive interest rate
To really see your money grow, you need a savings account with a competitive interest rate. Lenders want to help you achieve your savings goals, and higher than average interest rates will help you to grow your nest egg faster than making regular deposits.
- Bonus interest rates
If a competitive interest rate is not enough to make you join with a lender, they may also offer a bonus interest rate. These are a valuable tool to help you in your savings journey. This is interest that is earned on top of your existing interest rate, usually for following a set of conditions. These may include meeting a minimum monthly deposit, or a set minimum amount of withdrawals. Not only does this discourage you from dipping into your savings, you’re also rewarded for this good behaviour.
- Promotional interest rate
This is different to bonus interest rates as promotional interest rates are offered as a one off, higher rate to new customers. Promotional interest rates are for a limited time only, but unlike bonus rates they do not come with restrictions. Before joining up, ensure you’ve checked what the standard interest rate is that the savings account will revert to once this promotional period is over.
- Age restrictions
Savings accounts will have a minimum age restriction. If you’re looking to open a savings account for your child, you’ll want to compare children’s savings accounts. Children’s savings accounts are a fantastic educational tool to help teach kids financial literacy and other money concepts, such as income, budgeting and how to achieve a savings goal.
- Minimum monthly deposits
Some lenders will have a set amount you are required to deposit each month, to help encourage you to reach your savings goals. Minimum monthly deposits can often accrue bonus interest if followed. If this is something you’re not confident you can match, it’s worth keeping in mind when comparing savings accounts.
- Minimum opening deposit
Some lenders may ask you to make a minimum deposit before they open your savings account, usually to cover any account opening costs. This feature may be a deterrent, especially if you haven’t yet started your savings journey.
- Free account statements
Your account statement isn’t always free. Some lenders charge you a fee to send this to you, particularly via post. If you’re not ready to make the move to email, it’s worth considering whether your savings account will charge you over a monthly or quarterly statement.
- Account keeping fees
These include anything from annual fees, ATM withdrawal fees and monthly fees. There are plenty of savings accounts that do not charge their customers any of these fees, so you should consider whether this is something you could afford to chip away at your savings.