Types of savings accounts

Once upon a time you had a choice between having a savings account or a cheque account but financial institutions have woken up to the fact that, as with everything else, people want the best deal they can get and are prepared to shop around until they find it.

Saving account options

Banks want you and your money but with the changes in peoples approach to money management the financial institutions have come to realize that they need to offer more incentives to attract custom. Some savings accounts worth looking at are

High interest savings accounts
Internet savings accounts
Cash management accounts
Incentive saver accounts

Basically, you want an account that’s going to benefit you rather than your bank so look at what the various institutions have on offer and go with the one that best suits your needs.

Savings accounts: Other information

Some banks offer great interest rates as part of an introductory offer, but make sure you know what the rate will drop to afterwards as it may not be as good as you could get elsewhere. It’s the ongoing interest rate that you should look closely at and banks are currently offering some fairly competitive rates with interest.

If you’re able to lock your money away for a while, you might want to consider a term deposit. These accounts pay a high interest on your money but they will vary depending on the length of the fixed term.

Also look at how your interest will be calculated. Most calculate on a daily basis and pay monthly which is good for helping your savings to grow. Bear that some will require you to keep a minimum balance to avoid banking fees so look to accounts that don’t ask you to keep a minimum balance in your account. Several banks are now offering no minimum balance and no fees so take advantage of that.

Online accounts are very popular now as they offer some great incentives and several financial institutions have them now. They are simple to operate, give you 24 hour access to your account and the interest rates are very good.