Rate cuts call for action

It’s worthwhile shopping around to see if you can get a better interest rate.

Rate cuts call for action

New legislation introduced this month means that online savings accounts are a less attractive offering for banks and many are cutting the rates offered on such accounts. Even if your savings are meagre, it’s worthwhile shopping around to see if you can get a better offer – a variance of as much as 0.5 per cent between some accounts can make a huge difference.

Banks are notorious for offering a higher interest rate to lure new customers, only to drop it significantly after a year or so. Complacency, or believing that the process of switching is too complex, often results in customers staying with the same bank for less return. However, as accounts are managed and applied for online, switching isn’t particularly difficult.

To see how a different interest rate can affect your savings, use the compound interest calculator at Moneysmart.gov.au

For a comparison of the interest rates on offer for savings accounts, use a comparison site such as Savingsaccountfinder.com.au.





    COMMENTS

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    PlanB
    27th Jan 2015
    12:28pm
    There are no good interest rates around at the moment, you might get a bit more on the "Progress Saver" type account BUT if you draw out b4 the end of the month then you loose ALL the interest for the whole month. The "OLS" is the best IF you ask for the Bonus interest, you can also pay bill from that account, by BPay etc -- you can't from the Progress saver because you would loose the interest
    Young
    27th Jan 2015
    1:14pm
    What is the OLS and which bank is it at?
    PlanB
    27th Jan 2015
    1:19pm
    OLS = On Line Saver, all banks have them
    KSS
    27th Jan 2015
    4:13pm
    Check this website: http://www.ratecity.com.au/savings-accounts You can compare all the banks, building societies etc in one go. This is the savings account page, but you can compare mortgages, investments and other things to.
    pate
    14th Mar 2015
    11:57am
    But be wary of certain organisations who charge you a monthly fee for just using their establishment.
    pate
    14th Mar 2015
    4:10pm
    Thanks for this article I investigated and found one which would suit me very well. Contrary to what Plan B said.
    PlanB
    15th Mar 2015
    6:41am
    pate, I would be interested as to which one/type you found, thanks
    pate
    16th Mar 2015
    3:09pm
    lan B I looked at he omes as listed and Ing was pretty good although some would be unable to save as much each month so the bext best one would be Bankwest then HSBC.