Best Savings Account In Australia

Choosing Bank Savings Account

There a lots of different banks, building societies and credit unions in Australia all offering you a range of different savings accounts. With such a wide variety of different options to choose from it can be difficult to know which is the best savings account for you. The exact answer will depend on your personal sitaution and the financial goals that you are trying to achieve, but there are some important tips and things that you should know when choosing the best bank account for you.

  1. Benefits Of Online Savings Accounts        Add Comments
    If you want to earn a high yield on your money then you should place 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 lower 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, which makes them some of the most popular and best savings accounts in Australia.
  2. Beware Of Introductory Interest Rate Periods        Add Comments
    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 after the introductory period is still competitive and worth while. Also you should understand and be aware of the special conditions that you must meet in order to get this higher interest rate (ie: for some bank accounts low account balances will make the interest rate revert to a much lower amount).
  3. Online Savings Accounts Versus Term Deposits        Add Comments
    The high yield online savings accounts in Australia have sort of taken over from traditional term deposit bank accounts, but each types of account has its own advantages and disadvantages. Online savings accounts give you convenient access to your money whenever you want and have good interest rates. However, fixed term deposits may have slightly better interest rates, depending on the length of the term. Also if you are undisciplined and tempted to spend your money term deposits provide a way of forcing you to save, however you should only do it if you definitely do not want to be able to access the money.
  4. What To Look For In A Term Deposit        Add Comments
    If you choose to take advantage of the high interest rates offered for term deposits you should make sure that you do your research about the account first. Some of the main traps that people fail to look out for is what happens to the money at the end of the term (ie: is it automatically reinvested into another fixed term) and you should never assume that at the end of the term the money will be rolled over at a similar interest rate.
  5. Savings Account Fees To Be Aware Of        Add Comments
    Before you open a new savings account it is important that you ask the bank about all of the different types of fees that 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.
  6. The Best Savings Account For Kids        Add Comments
    If you are opening a bank account for your kids then make sure that you get a dedicated children's bank account, which most major banks offer to their customers. The reason for this is that in Australia this sort of savings account have special conditions that are great for kids, such as no fees and added savings incentives which will help your kids to learn about saving.
  7. Check The Bank's Online Security Policy        Add Comments
    Online banking is not only the way of the future but is also what all of the banks want you to do nowadays. Because it is so popular it is very important that you 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.
  8. Mortgage Offset Accounts Are Better Than Savings Accounts        Add Comments
    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 on it.
  9. Get A Student Bank Account If You Are Studying        Add Comments
    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, free withdrawals from any ATM and possibly even an overdraft facility, because they know that people are not likely to change their bank accounts after they graduate and begin working.
  10. Compare All The Bank Accounts Features        Add Comments
    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. Also look at your normal bank balance and if you are normally in overdraft then choose a bank account with the lowest overdraft interest rate and you are normally in credit then choose a bank account with a high interest rate.
  11. Tips For Switching Bank Accounts        Add Comments
    Nowadays it is not too difficult to switch or change your bank account. You used to have to inform your employer and any one else that deposited money directly into your savings account the details of your new bank account, but as of 1st July 2012 this is not necessary any more. All you need to do is to tell your new bank the details of your old account and then will ensure that all direct deposits and direct debits are switched over for you. It is, however, still a good idea to not close off the old bank account and actually have the 2 accounts open for a month or two, just to make sure that all of your income and direct payments have been changed over correctly.

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