Best Savings Account In Australia

• If you want to earn a high yield on your money then look at placing it into an online savings account. The interest rates for these online savings accounts is much higher than normal bank savings accounts because they have much less expenses with less staff and no branches where you can withdraw your money. Instead you have to transfer your money online into a normal bank account to be able to access it. The inconvenience of having to maintain 2 bank accounts and doing online transfers is, however, far outweighed by the much higher interest rate, making them some of the best savings acccounts in Australia.
• A lot of banks now offer increased interest rates for an introductory period (ie: 4 months) in order to attract new customers. If you open one of these high interest savings accounts make sure that the rate that it reverts to is still competitive and that you know all the conditions that you must meet in order to get this higher rate of interest.
• The high yield online savings accounts in Australia have sort of taken over from traditional term deposit bank accounts. You can still get very good interest rates from a fixed term deposit, however you should only do it if you definitely do not want to be able to access the money.
• If you choose to take advantage of the high interest rates offered for term deposits then never assume that at the end of the term your money will be rolled over at a similar rate.
• Before choosing a new savings account ask the bank what sort of fees you will have to pay when using the account. Especially ask them about which ATMs you can use without attracting a fee, how many ATM transactions you get each month for free, what the savings interest rate is on the account and also if there are any charges for over the counter transactions.
• If you are opening a bank account for your kids then make sure that you get a dedicated children's bank account. This is because these sort of savings accounts in Australia have special conditions that are great for kids, such as no fees and savings incentives.
• Online banking is not only the way of the future but is also what all of the banks want you to do nowadays. So always ask the bank what their online security policy is, what they do to prevent internet bank fraud and what their procedure is if a security breach happens. After all it is your money so make sure that they are protecting it properly.
• Remember that you must pay tax on any interest earned from a bank savings account in Australia, so if you have a home loan mortgage it is generally better to have the money in a 100% offset account. This way the reduction of the interest paid on the home loan is equivalent to earning interest at the home loan rate without having to pay any tax having on it.
• If you are a student or studying at university make sure that you get a student bank account as these are some of the best savings accounts in Australia. The banks will attract you to them with inducements such as reduced bank fees, withdrawals from any ATM and possibly even overdraft facilities, because they know that people are not likely to change their bank accounts after they graduate.
• Look at your normal bank balance and if you are normally in overdraft then choose a bank account with the lowest overdraft interest rate. Alternatibely if you are normally in credit then choose a bank account with the highest interest rate.
• When comparing bank accounts don't be enticed or influenced by any bonuses that the bank is giving away if you open a bank savings account with them. You must look at what is actually being offered, as a lot of the times the bonuses are swallowed up by extra fees or reduced interest paid.
• Nowadays it is not too difficult to switch or change bank accounts. Just remember that you will need to inform your employer and any one else that deposits money directly into your savings account the details of your new bank account. It is a good idea to not close off the old bank account and actually have the 2 accounts open for a month or so, until you have seen your money being deposited into you new bank account.