Banks differ in high interest savings accounts and other products that they offer. That’s why some people think about switching accounts once they found out that there’s another savings and investment product that can help better manage their finances and build their savings. Of course, we only want the best savings account in Australia, that’s why there are instances when we plan to get a different account. Here are the top things to do when you’re switching savings accounts:
When you switch accounts, don't forget to transfer all direct debits and credits such as your salary, utility payments, gym membership, and subscription to the new account.
Look for a transaction account
Make sure that you’re getting a lot of benefits from switching to another account. So it is essential to check if it offers lower fees, hassle-free access, higher interest rate, as well as better service overall. If you have multiple accounts in one bank, ask if they offer a special bundle or package rate. Of course, you may no longer take advantage of this offer when you switch accounts.
Transfer all direct debits and credits
Automatic payments make life much easier, plus these prevent you from missing a payment. When you switch accounts, don’t forget to transfer all direct debits and credits such as your salary, utility payments, gym membership, and subscription to the new account. Ask your old bank for the 13-month list of all direct debits and credits and bring it to your new bank. They will be the one to contact all direct debit payees and credit organizations about your new savings account information.
Close your old savings account
Bear in mind that banks have account-keeping fees, so even if your old account is empty, your old bank may still charge fees. That’s why it is important to close your old account once you’re done transferring all of your direct debits and credits, and informing all payees and credit organizations. You may be asked to go to the bank to personally close the account.
If you want to switch to a high interest savings account, make sure to read the fine print carefully. Take note that banks vary in the products and services that they offer, so understand the terms and conditions of the new bank to take advantage of the benefits and avoid any inconvenience later on.
Do you have other tips when switching savings accounts and how to find the best high interest savings account in Australia? Share your ideas in the comments section.