So you’re trying to save a little extra cash for a holiday, a new fridge or TV or even a new car. You want to know that every dollar you save is being maximised. And that your money is growing as fast as possible to get you to your savings goal sooner. You want to know that you’re getting good interest on your savings.
Are you interested in your interest?
- How much interest is being earned on the money that you are working so hard to save?
- Is your money working hard for you? Is your bank rewarding you for choosing to store your savings with them?
The downside of record low interest rates
- The current record low interest rates are great news for Aussies with mortgages. Low interest rates keep their mortgage repayments low.
- But low interest rates are bad news for those who are working hard to save their cash.
- The banks aren’t paying much of an interest return on your hard earned savings.
- Choose a high interest earning account, and know that your savings are growing fast to get you to your goal.
- These are accounts that offer a higher interest rate, if you make regular deposits and fewer withdrawals.
- By encouraging you to leave your money alone and rewarding you with a higher rate and bonus interest, they can help you save faster through compound interest.
Know where to get the best deal
- Many of the big banks offer next to nothing on your savings, their interest rate is so low.
- But do a little homework and you could earn a lot of extra cash, and grow your account much faster.
- Use a comparison site like Canstar to compare a range of high-interest earning savings accounts.
- You can personalise your search based on your starting balance, location and ongoing contributions. You can determine which bank will give you the best deal and grow your savings fastest.
Ways to increase your interest and boost your savings, fast!
- While the base interest rate being paid on your savings is important, it’s just one factor to look at.
- Other variables when it comes to high interest earning accounts include
- The minimum starting balance
- The minimum term for your deposit. To maximise the amount of interest you earn, many high interest earning accounts lock your money in for at least a few months. Consider whether you need your savings to be available at any time. Or are you happy to lock them away from temptation for a few months or even longer, to earn a higher interest return?
- Whether you need to make any withdrawals. There’s many savings accounts offering an interest bonus for each month that you only make deposits and no withdrawals. This bonus interest can add up to big bucks over time.
- Any other terms and conditions – be sure to check the fine print and make sure the account suits your needs.
Think you can’t save?
You can! The trick is to start small, and save regularly.
- Use this savings goals calculator to see how quickly you could reach your target.
- Open a separate high interest savings account and set up regular deposits.
- Keep a close eye on your spending, and remember that every cent counts!
- Pop all of the coins from your purse and pockets into a jar each day, and bank it once a month.
- You’ll be amazed how quickly those cents become big bucks!