Ready to reach your savings goals sooner with a new savings plan, but not sure where to start?
To make that overseas holiday or first home a reality sooner, it’s important to find a savings account with the right features, fit for your savings habits. To help you start the search, we’ve put together five commonly found features to look out for when choosing the best savings account.
1. Monthly fees
Some banks may charge a monthly administration fee on their savings accounts. If you want your savings to grow without the stress of fees, it may be best to avoid accounts with monthly fees. At People’s Choice, our savings accounts come with no monthly administration fees.
2. Interest rates
A high interest savings account can be a big drawcard when choosing the right account for you. The higher the interest rate, the harder your savings will work for you and compound over time to grow your money faster.
Some savings accounts will offer a base interest rate, whereas others may offer a bonus interest rate if you meet certain conditions each month (we cover this off in point 4). You can explore our current interest rates for our savings accounts here.
3. Opening deposit
Some banks may require you to make an opening deposit to set up a savings account. If you’re just starting your savings journey and don’t have an opening deposit, no worries! Just look for a savings account with a $0 minimum deposit, like any one of our savings accounts.
4. Interest conditions
You may see the term ‘bonus interest’ a lot in the search for a savings account. Generally, a bonus interest account gives you the option to earn a higher interest rate on your account if you meet certain conditions by the end of each month.
If you don’t meet these conditions, your interest rate may stay at the base level. The conditions to unlock bonus interest may look like this:
- Deposit a certain amount each month
- Make no withdrawals for the month
- Increase your account balance each month
Take our Dream Fund account for example – this offers bonus interest when the closing balance of your account for that month is more than your opening balance.
5. Access to my money
Do you value the ease of online banking, and not too fussed about in-branch banking? Some accounts, like our Dream Fund, are digital access only - designed for those who prefer an online banking experience.
If you prefer to have the option of in-branch banking, you may want to opt for our Bonus Saver Account which offers the best of both worlds.
What kind of saver am I?
Ask yourself this question when weighing up these five features. If you’re an avid saver that can resist the temptation of making monthly withdrawals – you may want to opt for a savings account that rewards this with bonus interest.
If you’re after flexibility to make withdrawals from your savings without this affecting the amount of interest you earn, you may want to opt for an account that doesn’t have a condition around making withdrawals.
Make a savings plan
Once you’ve decided on the right account for you, start planning how you’re going to grow your money and reach your savings goals. A great place to start is with our savings calculator to find out how much interest you can earn by frequently depositing money into one of our savings accounts.
If you aren't sure which People’s Choice savings account will be best for your needs, our comparison tool is another handy reference point. For our top budgeting and money saving tips, click here.
