Open Savings Account

Opening a savings account can be done online, over the phone or in a bank branch but before you’re ready to open a savings account, you need to make sure you know how and why you are going to use that account. Having your savings goals and banking needs clear in your mind will ensure you choose the savings account which is best for you and one which really does help you save your money.

If you need to open a savings account for a long term goal such as superannuation or an investment, you are going to need different features and will look for different benefits than someone saving for a medium term goal like a holiday or a wedding. Opening a children’s savings account is also very different to opening a savings account if you are in business, and how do you open a savings account which the entire board will approve? Following are tips and advice to help you compare savings account for your needs, so you can be sure you have all the facts before opening a savings account.

Top 3 Savings Accounts

Savings Account	Account Details	Maximum Variable Rate p.a.	Standard Variable Rate p.a.	Bonus Interest p.a.	Fees	Min Balance/Min Deposit
St.George Maxi Saver	High interest online savings account with no monthly account service fee and no transaction fees.	5.70%	4.30%	1.40%	$0	$0 / $0
HSBC Serious Saver	If you are serious about saving.	5.55%	4.25%	1.30%	$0	$0 / $0
NAB iSaver	Online savings account with a high interest rate.	5.00%	3.65%	1.35%	$0	$0 / $0

Open an Investment Savings Account for the Long Term

If you want to set up a self managed super fund or are just looking to cleverly invest for the future, open a savings account which will reward you for the way you will use the account. Having long term savings goals means you may be starting with a substantial investment, or be making regular contributions, or both. Therefore, because you don’t intend to make withdrawals, you can open a savings account which will reward you for this, children’s savings accounts operate in the same way, because you are attempting to instil long term savings goals. To open a savings account for the long term:

• Look for a high ongoing interest rate, rather than a promotional rate. Even if the promotional rates of some savings accounts appear to offer you a better deal, if the standard interest rate offered after the promotion finishes is low, you’ll be better off in the long term with a stable ongoing rate.

• Look for rewards and saving incentives. Open a savings account which rewards you with higher interest each month you don’t make a withdrawal. For children’s savings accounts, you can also find rewards offered when regular deposits are made.

• Open a savings account with low or no fees. If you are in this for the long term, even seemingly low fees will add up over the life of your investment. Therefore, choose a savings account which has no account keeping fees, no transaction fees and no withdrawal fees from the outset.

• Open online and continue to save on paperwork. Opening your savings account online makes the process fast and easy, but having your statements emailed to you, or viewable online means you don’t have to be distracted by your investment paperwork, when all you need your money to do is grow.

Open a Wedding Savings Account for the Medium Term

Your medium term goals may include a wedding in the future, holiday plans next winter or a new home in the New Year. Well whatever your medium term goals are, you need to open a savings account which can keep those goals on track, and even fast track them with high interest returns and fast growing savings. To open a savings account to help you achieve your dreams:

• Choose a high interest rate, calculated daily. Where promotional interest rates are offered on high interest savings accounts for the first few months the account is open, this boost in interest may be enough for you to meet your savings target within the promotional period. Also make sure that every day your money is in your savings account counts by opening a savings account where interest is calculated daily, because with weekly deposits you can take advantage of increased daily interest at the end of the month.

• Don’t pay savings account fees, and follow the interest. If you are getting married, planning a holiday or saving for a house deposit this is probably always in the front of your mind. Therefore, after you have chosen a savings account with the highest interest rate, research other promotional interest rates available when your savings account reverts to a standard rate. In this way your savings can follow the promotional interest rates and continue to offer you great returns, and without account or cancellation fees your savings will continue to grow towards your goal.

• Open a linked savings account to meet your savings goal. If you have a tangible savings goal then you know how much money you need to achieve that goal. Therefore you can also calculate how much you will need to deposit into your savings account at what interest rate to achieve that goal on time. When you open a savings account, also make sure you can link it to your existing everyday account, where you can set up a direct transfer and keep your savings on track.

Open a Savings Account for Business

Businesses are just like individuals, in that after they’ve paid their bills they want to make sure that the money left over is properly looked after. So how do you choose a savings account for business which all the Directors will be happy with, and one which keeps the account usage transparen’t? To open a business savings account:

• Calculate how much the business will be saving and the types of returns the business wants to make. Confirming an initial deposit will help you compare savings accounts which require a minimum deposit for business customers. Also, knowing the business’ savings goals means you can choose whether high interest is more important than easy short term access.

• Choose who will act as signatory. This could be as simple as nominating the two Directors in a business partnership as signatories, or choosing members from the board of a not-for-profit organisation. If you require further assistance in choosing signatories for your business savings account, seek the advice of your accountant or financial advisor who can advise you on the best way to maintain integrity and transparency with your business accounts.

• Collect the business documentation and account holder paperwork. To open a business account you will have to visit the branch of the bank and you will need all of the intended signatories present, and they will all need to bring adequate identification. You will also need your business name registration certificate and your business ABN or if a company, your ACN.

• Choose how you will access the business savings account. If you want to maintain the highest level of transparency in your business savings account, open an account which does not penalise you for branch deposits and withdrawals, as you may choose to use cheques authorised by two signatories to access the account; similarly you can choose not to activate internet banking.

• Open a secure business bank account. If you do want to use internet banking with your business savings account, compare the security features of the banks. Some will send you a text message with an authorisation number before each payment or transfer is completed and others will issue you with a Digipass which generates a unique access code each time you need to log into your account.

To Open a Savings Account

The main priority of your savings account is of course the savings you deposit and if they are going to be eaten away by fees it’s going to take you longer to meet your savings goals. Therefore, where possible, open your savings account online, and choose a savings account which can be operated entirely over the internet. Opening your savings account online means you should be able to avoid any set up fees and you may not be required to provide an initial deposit. Choosing an internet savings account means you can continue your account fee free as you never have to go to a branch, and where the bank doesn’t have to get involved, you can save on fees.

What to do when opening your savings account:

• Be clear in your savings goals as this clarity will help you choose the savings account which best suits your needs, as well as make sure you stay motivated to reach your savings target.

• Read all of the fine print and account conditions because an interest rate which seems attractive could just be a short promotion and an account which seems to have great features, could also have great fees.

• Be organised before you open the account. Your savings are supposed to be simple, and something you can set and forget until you need them so make sure you have all of your identification details ready before you start the online application.

• Stay organised. This may mean choosing to access your statements online instead of having them posted, or choosing email as your preferred contact method. This allows you to keep track of your savings and not just put them in the ‚Äòtoo hard basket’.

Taking the time to compare the savings accounts available is a small investment of time, in your financial future. However, making the right choice and opening the best savings account for your needs can turn that small investment into a much bigger one.