We’ve all been told that it’s not enough to keep your money in a piggy bank, in the closet or under the bed. This is not the only way to have a secure financial future and reach your goals. You can meet your financial goals much quicker if you keep your money in a bank, specifically through a high interest savings account.
With an automatic savings plan, paying yourself becomes easier and a lot more convenient.
There are other advantages of having a savings account. Take a look and you may learn something about your account that you may not know before:
Let your money work for you
You can earn interest on your savings. This is common knowledge, but if you want to get more returns, consider opening a high interest savings account. You will get a higher percentage of your balance from the bank. This will greatly help you in achieving your goals.
There’s this incentive called bonus interest
Aside from the usual interest, you can get a bonus interest provided that you’ve met certain requirements associated with your savings account. These conditions may be maintaining regular deposits or not having any withdrawals for a certain period. It can also be given by banks as an introductory offer when you open a new account.
Set up an auto savings plan
It has always been said to pay yourself first. With an automatic savings plan, paying yourself becomes easier and a lot more convenient. In this feature, you enable your bank to debit your transaction account with the amount you specified. You also need to indicate the dates and frequency of the auto savings in a particular period.
There’s no lock-in period
One of the great things about a savings account in Australia is that you can switch accounts whenever you want and as often as you like. You can actually switch accounts to take advantage of periods when banks offer bonus interest.
Your money is secure
If you keep your money in a piggy bank or under the bed, you may lose it in case of an unfortunate event. With a savings account, the government will guarantee your balance up to $250,000 if something bad happens to the bank.
Having a savings account is essential to reach your financial goals. But before going to a bank to open an account, it pays to do your research and look for the one that best suits your requirements. Compare savings accounts of several banks and weigh their pros and cons.
Do you know other advantages of having a high interest savings account in Australia? Share your ideas in the comments section.