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Tuesday, 26 October 2021 08:10

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Whether you’re saving for a holiday, a home deposit or a new pair of shoes there’s a savings account out there for all savings scenarios. This guide delves into the different types of savings accounts to help you decide which one best suits you and your hard earned savings. Then you can sit back and watch your savings grow!

Online Savings Accounts:

Gone are the days when the only way to deposit money into a savings account was in person in a branch! Thanks to the tech savvy world we live in, there are now online savings account where you can make savings deposits over a cup of coffee at a café or from the comfort of your lounge room. An online savings account allows you 24/7 access to your account just about wherever you are in the world. With lower bank overheads, interest rates are high as these accounts are designed to let your savings skyrocket. They are usually linked to your transaction account, where money comes in and out through your income and debit cards.

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Bonus Saver Accounts:

Who doesn't like the idea of being rewarded for their savings habits?! These savings accounts offer conditional bonus interest rates if you meet a specific criteria such as a minimum monthly deposit or don't make a withdrawal in a month. Depending on the account, the bonus rate is usually awarded on top of the base interest rate. Bonus saver accounts are ideal for those who need help keeping their savings goal on track as they'll benefit from having the money sitting in the account but will miss out on bonuses for taking it out. Click the link to compare the most competitive bonus saver accounts on the market.

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Introductory rate savings account:

If you’re thinking of switching banks then you’re likely to come across some very appealing introductory rate savings accounts. These accounts offer introductory bonus rates (usually lasting 3-6 months) to reward new customers for making the change. After the introductory period has ended the interest rate will revert to the standard variable interest rate of the account. This type of savings account is great for people with a short term savings goal or those willing to make the switch every couple of months in order to seal a high interest rate.

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High Interest Savings Account

What better way to see your savings grow at a fast pace then with a high interest savings account. If you shop around and compare you can find competitive rates from as high as 2.55%. The best high interest savings accounts are usually found in the online form (as mentioned above) and with no account service fees they offer great rates compared to standard branch access accounts. Bonus saver and introductory rate savings accounts also attract high interest rates but come with a strict criteria.

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Minimum Deposit Savings Account

Some financial institutions require you to make a minimum deposit into your savings account each month. You’ll be rewarded with high interest rates if you do make these regular payments but fail to do so and penalties will apply.

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Kids Savings account:

There’s no harm in introducing your children to the world of savings at an early age. A kids savings account is usually for children under 18 years and just like a basic savings account the balance earns monthly interest. Most major banks, credit unions and building societies in Australia have accounts specifically designed for children.

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Now you should have a good idea of the type of savings account that will suit you and your savings goals. Looking for a place to start saving? Take a look at our options here

This article was originally published by Mozo at https://mozo.com.au/savings-accounts/guides/types-of-savings-account/21 This information is general in nature. does not take into account your personal situation and does not constitute financial advice. Please refer to any relevant terms and conditions associated with any financial product offering.