Choice Savings Accounts

Choosing a savings account is an important decision because the account you choose can impact on the interest your savings earn, how much and how easily you save, and how quickly you reach your savings goals. At the same time you’re spoiled for choice when it comes to savings accounts because just about every Australian financial provider offers at least one high interest savings account, that is why you need to follow the advice below to start your search for the best savings account, to make the right choice a simple one too.

How to Choose a High Interest Savings Account

It is possible to simplify the choice of savings account, all you need to do is know what you’re looking for. Therefore, follow these few steps to help you compare the savings accounts available, and make the right choice:

• Step 1, know what you are saving for. The reason you need a savings account determines the type of account you choose. For example, if you are going to open an investment savings account you need one with a long term high interest rate, not a promotional rate. If you want to use a high interest savings account for your super funds, you need to choose a compliant retirement savings account, or super savings account.
• Step 2, know how you are going to save. If you have a single substantial deposit to make then you will want to choose a high interest savings account with a promotional introductory rate to give your funds an immediate boost. However, if you want to make regular smaller deposits to your savings account over a longer period to save for your goal, choose a savings account with easy access and free internet transfers.
• Step 3, know how you’re not going to save. If you know you’re not a disciplined saver and won’t be able to make regular deposits, or no withdrawals in a month there is no reason for you to choose a savings account which offers you bonuses for this saving behaviour. Instead choose an account with bonuses you can achieve like a bonus interest rate for maintaining a minimum balance for example.
• Step 4, choose an account you can access your way. If you want to write out a cheque each week to send off a deposit to your savings account to create a paper trail you can follow, then choose a savings account which doesn’t charge you extra transaction fees for cheque deposits. Or, if you want to make all your transfers online in the middle of the night or before you leave for work in the morning, choose a savings account which gives you full online access to manage your account.

Choice’s Review of First Home Savings Accounts

Australians look to the consumer group Choice for many important decisions and as such, Choice has a vast library of information and reviews on every product and service you can imagine, so what is Choice’s opinion of the government’s first home saver accounts scheme?

The Choice review of first home saver accounts:

• Choice warns that you won’t be able to access your first home savings for four financial years. This is a long time if you are coming to the housing market in your mid to early 20s as many young couples are, or even later, but a first home saver account can be opened by anyone over the age of 18, so by the time you’re 22, you could be in your very own home.
• Government contributions are at a higher percentage than the rate your interest is taxed at. Government contributions are 17% of balances up to $5,000 each financial year, and the interest you earn on the funds in your first home saver account is only taxed at 15%.
• You are advised to shop around for the best interest rate on your first home saver account, as you can earn interest from the bank or financial institutions which holds your account, in addition to the 17% contribution from the government.
• Choice advises there are basic savings account features you should look for in a first home saver account, an interest rate which matches or exceeds the RBA’s cash rate; a simple interest rate structure, not one which is tiered on the balance amount or the amount of deposits made in a month; no account keeping fees; no switching fees; no fees to make deposits; and an interest rate which is calculated daily and paid monthly to earn you compounding interest.

Choice’s Review of High Interest Savings Accounts

If you have savings sitting in an everyday transaction account, Choice advises you to consider a high interest investment, either a savings account, a term deposit or a cash management account. In a transaction account Choice points out that you will be earning little to no interest on your funds and that since banks are becoming more competitive it is easy to find a high interest rate on a savings account.

Choice’s high interest savings options:

• Online savings account. Since most Australians have access to the internet and already use internet banking, an online savings account is easy to set up and use. Choice also advocates the ease of use of online savings accounts and the higher rate of interest compared to a transaction account.
• Term deposit account. Choice advises you only consider a term deposit if you can leave your funds in the account for the full term. While the interest rate on most term deposits is higher than a high interest savings account, you can be severely penalised for early withdrawal.
• Cash management accounts. Choice urges you t consider a cash management account if you can maintain the minimum balance required to earn the higher interest rate. A cash management account offers you both a high interest rate and the ability to make ATM withdrawals, use EFTPOS, pay bills over the phone and use internet banking.

Term Deposit	1 Month	3 Month	4 Month	6 Month	12 Month	24 Month	36 Month	60 Month	Min Deposit
ANZ Access Advantage									$0

Choosing a savings account can be a daunting task, but it is really as simple as knowing what you want and need and setting out to find it, plus, with the backing of Australia’s premiere consumer group, high interest savings accounts are an easy and effective way for almost all Australians to save, for whatever reason. To help you choose the savings account which meets your needs, use the Savings Account Finder™ comparison tables, before signing up online today through our secure and direct bank links.