Savings Accounts in Australia

Australia economy is growing fast The savings account market in Australia is undergoing a big changes. According to Reserve bank of Australia, household savings has declined in recent years, if stock market wealth is excluded. Government has instructed all the financial institutions to come out with a slew of measures and campaigns to increase awareness of savings among Australian citizens. For first timers, the most common savings accounts, on offer, are:

Savings accounts: these operate with an interest rate that starts with a base rate paid. A bonus interest rate can be earned, if you adhere to the conditions attached to these accounts, which include leaving the bonus interest if you make a withdrawal or if you fail to deposit a set amount of money every month.


Online savings accounts: As the name suggests, these accounts can only be accessed via the internet, which are offered by many financial institutions. They offer a great rate of interest, have the least conditions attached and are required to be linked to a transaction account.

Children’s savings accounts: these accounts function like a traditional bonus savings account paying high interest rates comprising mostly of bonus interest rates. Children can have real life banking experience by utilizing branch access facilities.

Cash management accounts: these accounts are often used to park cash for deposit account holders who want the basic transaction facilities as well as a good interest rate.

Before opening a savings account, there are a number of things you should look for. First of all, try to find an account with a good interest rate, and no account keeping fees. Ask if the account has a minimum balance and also make sure you compare the interest rate to other savings accounts, to get a good deal.