Over recent years, plenty of Australians have concentrated on reducing their debt than trying to increase their savings. However, with the economic situation beginning to improve, people are two times again beginning to think about saving two times again. With such a wide choice of products on offer it can be difficult to select the right account for your needs.
Here are our top three tips to selecting the correct online savings account.
Beware Of High Introductory Bonuses
Plenty of online savings accounts that appear in ‘best buy’ tables are newly launched accounts. Plenty of such accounts get in to ‘best buy’ tables by offering high introductory bonuses. For example, you may benefit from a higher rate of interest for a two or twelve month period.
If the terms of these accounts suit you, take advantage of them. However, make positive that you keep a note of when the introductory bonus ends. You’ll need to compare the accounts on offer two times again to check you’re still getting the best deal.
Regular Saving
In case you have spare money to invest every month it may be worth thinking about a regular every month online savings account.
Some accounts offering high rates do insist that you set up an automatic savings plan (sometimes of $100 per month or more) to the new account. Some accounts offer high rates of interest to regular savers, although you will often be prohibited from making a withdrawal for a positive time period (often one year).
How To Transact
There's plenty of different types of savings accounts including branch-based & online accounts.
When choosing the most appropriate account, make positive that you select one that allows you access to your money in the way you need it. In case you need to be able to go in to your local branch to make a deposit or withdrawal, an online account may not be the best choice for you.
Fixed or Variable?
Savings providers usually provide a choice of fixed or variable rates of interest. Fixed rates of interest are normally called ‘term deposits’ & need you to commit your savings to them for a set period of time; often one, three or four years.
Whilst these accounts will be positive you always know what return you are receiving on your savings, you ought to only think about one in case you are positive that you won't need to access the money in the work of the whole fixed rate period. Some term deposits won't permit withdrawals in the work of the term, whereas others may have significant penalties for early withdrawal.
Variable rate accounts can fluctuate in terms of the rate of interest that you will receive but you will usually have more flexibility & more access to the money.
Think about Linked Accounts
Some banks & building societies will offer you enhanced savings rates or facilities on their online accounts in case you have other financial products with them. For example, if your current account is with a specific provider, they might offer you higher rates of interest for your online savings.
Think about both your own bank, & also moving your current account to another provider to take advantage of these preferential online savings rates.
Here are our top three tips to selecting the correct online savings account.
Beware Of High Introductory Bonuses
Plenty of online savings accounts that appear in ‘best buy’ tables are newly launched accounts. Plenty of such accounts get in to ‘best buy’ tables by offering high introductory bonuses. For example, you may benefit from a higher rate of interest for a two or twelve month period.
If the terms of these accounts suit you, take advantage of them. However, make positive that you keep a note of when the introductory bonus ends. You’ll need to compare the accounts on offer two times again to check you’re still getting the best deal.
Regular Saving
In case you have spare money to invest every month it may be worth thinking about a regular every month online savings account.
Some accounts offering high rates do insist that you set up an automatic savings plan (sometimes of $100 per month or more) to the new account. Some accounts offer high rates of interest to regular savers, although you will often be prohibited from making a withdrawal for a positive time period (often one year).
How To Transact
There's plenty of different types of savings accounts including branch-based & online accounts.
When choosing the most appropriate account, make positive that you select one that allows you access to your money in the way you need it. In case you need to be able to go in to your local branch to make a deposit or withdrawal, an online account may not be the best choice for you.
Fixed or Variable?
Savings providers usually provide a choice of fixed or variable rates of interest. Fixed rates of interest are normally called ‘term deposits’ & need you to commit your savings to them for a set period of time; often one, three or four years.
Whilst these accounts will be positive you always know what return you are receiving on your savings, you ought to only think about one in case you are positive that you won't need to access the money in the work of the whole fixed rate period. Some term deposits won't permit withdrawals in the work of the term, whereas others may have significant penalties for early withdrawal.
Variable rate accounts can fluctuate in terms of the rate of interest that you will receive but you will usually have more flexibility & more access to the money.
Think about Linked Accounts
Some banks & building societies will offer you enhanced savings rates or facilities on their online accounts in case you have other financial products with them. For example, if your current account is with a specific provider, they might offer you higher rates of interest for your online savings.
Think about both your own bank, & also moving your current account to another provider to take advantage of these preferential online savings rates.
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