High interest rates savings accounts in Australia can be a great place to store your money. They are usually covered by the Australian Government’s deposit guarantee scheme and generally have the best interest rate available.
There are many websites that do bank account comparisons.
The rate offered for high interest rates savings accounts can vary greatly. Banks will sometimes offer a sign-up bonus, or a bonus rate for doing day to day bank through one of their accounts. If you’re looking to open a new high interest savings account, here’s some ways to find the best one in Australia.
Check an online comparison site
There are many websites that do bank account comparisons. Check a few to see if they all come up with the same account. Make sure they include the standard rate, as well as any promotional rates.
Check your current bank
If you have a larger deposit, your current bank might offer you a higher rate to keep your business. If you have checked what other banks are offering, ask your current bank to match it.
Work out how much you’ll make for a year
Do some rough calculations to work out how much you’ll make each year. Take into consideration months you will not receive any bonus rate and withdrawal fees. An account with a lower standard interest rate, but less conditions and fees, might make you more over a year.
Follow the promotion trail
There is a lot of competition within the high interest rate savings account market. Banks regularly offer bonus interest rates for new accounts. Simply check a comparison site for a current bonus deal. Use this account until it reverts to the standard rate and then open a new account with a bonus rate.
However, before signing up or changing high interest rate savings accounts, make sure you understand the terms and conditions.
- High interest rate savings accounts usually charge fees or cut the interest rate during months you take money out of the account.
- They may only pay the full interest rate if you meet other conditions, such as depositing $50 or having $2000 deposited into a transaction account.
- Some accounts must be linked to a same bank transaction account.
With a little bit of research, and even having a discussion with your financial planner, it isn’t hard to find a great high interest rate savings account. It’s also not hard to swap banks if your current one doesn’t compete. A small increase in the interest rate can make a big difference in the long run, so don’t settle for OK, when you can find the best.