“Don’t put all of your eggs in one basket.” This rings true when it comes to saving money. While having a normal savings account is important, there are several other ways to keep your money secure. You can even get higher returns from some of the account types. But with so many options to choose from, which types of bank accounts should be on your list? Here are some things to take into account:
It really depends on your financial capacity and literacy as well as your motivation and discipline when managing your money.
This is where you keep your money to cover unexpected expenses. These include medical bills and car repair. If you lose your job, you need your emergency fund to cover all of your expenses when salary stops coming in.
Young individuals who are just starting with their jobs may frown upon the idea of setting up this account. But as they always say, the best time to start saving and investing is when time is your ally. As early as possible, consider setting up an account for your retirement.
Personal transaction account
This is where you keep your money to cover bills payments and everyday spending. This account type vary in features so make sure to check which Australian bank account meets your needs.
High interest savings account
If you have short and medium-term goals, you may want to consider opening a high interest savings account. As the name suggests, it offers higher returns of your money compared to saving on a typical account.
In this account type, your money will be locked away for a particular period with a fixed interest rate. Let your money work for you. And since you will not have access to your money during the designated period, you will be able to save money.
These are just some of the accounts being offered by banks. In general, there are no strict rules on the types of accounts that you should have. While it would be great if you can have the accounts above, it really depends on your financial capacity and literacy as well as your motivation and discipline to better manage your money.
To know which is suitable for your needs, make sure to compare bank accounts and check Australian bank interest rates. It’s about your hard-earned money and your financial security so it pays to do some research before opening any bank account.
Got other tips on how to compare bank accounts to get the best one? share your ideas in the comments section.