Savings Account Guide Australia

With interest rates set to increase in Australia there is no better time to open a high interest savings account. In the past year interest rates have been on the rise, nearly 2%. For those of us lucky enough to have some spare money each month it’s a good time to save. There are many other methods to invest your hard money including property and shares etc. but with the unpredictability of the world markets at the moment high interest savings account offer a safe and secure way save money.

It’s not hard to open a savings account but there are a few things everyone should be aware of before doing so. I have listed 5 points you should consider before opening an account.

1. Set some financial goals

It’s always important to setup some financial goals and think about what are the expectations you have. Once this has been done you can then have a clearer picture of what kind of savings account would suit your needs.

2. Research

Ask friends or family for recommendations. Failing this do some research yourself. Search on Google for terms such as ‘best savings accounts’, ‘high interest savings accounts’ or even ‘internet savings account’. There are even some useful comparison websites e.g. http://www.savings-accounts.com.au. Which offer a full list of saving account providers, latest deals, tools and information. Do you research now otherwise you might regret it in the long term.

3. Which Account?

Choose account with the following criteria

* Highest variable interest

* 24/7 Online Access. This will save you time and normally results in savings on administration charges

* Make sure the type of account suits the way you like to bank? If you like to use a computer to bank then make sure you can have access 24/7. If you like chequing accounts make sure the account comes with this facility etc.

* Choose an account that does not have any fees when opening or transferring money

5. Safeguard your savings account

Be vigilant when agreeing to terms & conditions. Though you might think that the T’s & C’s are pretty standard, most of them are not and taking time before signing the dotted line can save some unexpected issues later on. Check always before giving away your hard earned cash.