When it comes to high interest savings accounts, or any savings account in general, you may have come across terms that you’re not familiar with. One of these terms is the account-keeping fees. Let’s get to know more about it and how you can manage it.
What is an account-keeping fees?
An account-keeping fee refers to the charges that you need to pay in exchange for maintaining your account.
An account-keeping fee refers to the charges that you need to pay in exchange for maintaining your account. This can also include the perks that come with having that account. This fee should not be mistaken as interest, which is separate.
Here are other things worth-knowing about monthly account-keeping fees on your bank account:
- When do you need to pay the account-keeping fee? Pay this fee monthly. It is charged automatically to your account every month. The day will depend on the financial institution and bank account.
- How much is the account-keeping fee? The cost incurred for maintaining your account depends on the bank or financial institution, but on average, you may pay about $5 per month.
- Compare savings accounts. If you’re looking for a high interest savings account that’s suitable for your needs and current situation, it is ideal to compare savings accounts offered by several banks. These differ in features and bank fees. By comparing their offerings, you will be able to narrow down your selection and choose the best savings account for you.
- Consider the fees of different banks. When comparing high interest savings accounts or transaction accounts, make sure to look at the fees involved. There are banks that may not charge you for accessing your money and using your account.
- You can avoid paying ATM fees. You can save on monthly account-keeping fees depending on how much you can deposit on a regular basis. Some banks will pay your ATM fees if you deposit a certain amount to your savings account every month. When choosing a bank to open a high interest savings account, it helps if you know the amount that you can deposit monthly.
These are some of the things that you need to know about monthly account-keeping fees on your bank account. You may think that it’s small enough that you can pay it every month, but add it all up and by the end of the year, it can be a big amount that can help build your savings plan, for instance. So when looking for a bank with which to open an account, consider the fees involved so you can better manage your money.
Got other tips on monthly account-keeping fees and high interest savings accounts in Australia? You can share your banking ideas in the comments section.