How to Maximize High Interest Savings Accounts in Australia
The search for the best high interest savings accounts Australia has to offer is simple. A number of great websites rank the current rates of all the top contenders. For instance, Moneyhound has a sliding interactive feature that allows you to see how much interest you can make at each bank, depending on the amount of money you deposit, and Canstar gives all sorts of great money tips in addition to ranking the best interest rates. Even the Sydney Morning Herald is a great resource for comparing the best interest rates in Australia.
You should choose your account from a bank registered by Australian Prudential Regulation Authority, because the first $250,000 dollars you deposit at a registered bank is guaranteed. You want a savings account that carries no fees. Finally, the account you select should have no penalty for withdrawing your money.
The most competitive savings accounts in Australia that meet these criteria tend to be online. Online banks, which have abandoned the traditional tiered interest system, offer one competitive rate for all deposits. Opening an account at an online bank can be as simple as filling out a form and providing the information needed to initiate the transfer; however, some banks require you to give proof of your identity at a local post office, and you will usually need an active mobile phone to activate the account. Some banks can have your money ready to earn interest the same business day.
If you truly want to maximize your savings, though, be aware that banks offer the consumer a high teaserrate, good for four months to six months from the first deposit. Banks are looking to capitalize on your inertia, so don’t let that happen! In order to earn the most interest, you will need to switch banks regularly. For a time commitment of one hour two or three times a year, you have the potential to save hundreds of dollars if you commit diligently to this strategy.