Having a savings account is one way to build your savings and ensure that you’ll have something to rely on when you need money for big purchases, unexpected expenses, and even for retirement. Savings accounts come with different features. Some savings accounts are designed for young people while others are designed for pensioners and retirees.
With so many options, it’s important to compare bank accounts and weigh their pros and cons. Bear in mind that we’re talking about your hard-earned money, and it’s essential to keep it in an account that will enable it to grow and work for you.
For pensioners and retirees, what are the Australian bank accounts that are available? Here are some of them:
- Pensioner high interest savings accounts – These are designed primarily to meet the requirements of Australians who are more than 55 years old. These are likewise ideal for those who are receiving a government pension. It works just like your typical Australian bank account. However, a pensioner high interest savings account can offer combined accounts. This means that it offers interest payments on the balance while you have unlimited access to a debit card and Bpay.
- Pensioner deeming accounts – These special accounts are designed for people who are over 55 years old or on a government pension. The Commonwealth Government sets the deeming rates which are also used to calculate the income for pension and social benefits. Forms of deeming accounts include retiree share trading, cash management and term deposit accounts.
When you compare bank accounts, these are the features that you need to look into:
- Accessibility – Many banks offer pensioner high interest savings accounts that are bundled with your transaction account. This makes it easier for you to access with a debit card. Another great thing about this is that you can set up direct deposits and payments for monthly expenses.
- Fees – Look for an Australian bank account that offers high interest without extra charges.
- ATMs – Make sure to check the ATM network of the bank and that it has ATMs in strategic locations, so you can withdraw cash more conveniently.
- Cheque feature – Do you have transactions that require bank-issued cheques? If yes, look for a bank account that offers this feature without an additional charge.
- Competitive rates – Check out the rates of several banks and choose one that offers the most competitive rates for your balance.
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