Compare Savings Accounts
What are savings accounts?
A savings account is an interest-bearing account maintained by a bank or other retail financial institute. Unlike a transaction account, savings accounts are not meant to be used for frequent withdrawals. Rather, the money placed into a savings account is money that you do not need immediate access to. It is a safe place to store your extra money and generate interest at the same time.
What are the different types of savings accounts?
“Savings account” is a general term used to describe the basic idea of a bank account meant for storing money rather than facilitating daily financial transactions. There are several variations on the basic concept of a savings account, each catering to a range of customer needs and goals. Here are three of the many different types of savings accounts available.
Online savings account
Online savings accounts are becoming increasingly popular. With an online savings account, you manage your money via the Internet or by telephone. Unlike a traditional savings account, there is no physical structure you visit. Your online savings account is linked to one of your transaction bank accounts, which is how you move money into and out of your savings. Typically, online savings accounts offer higher interest rates and charge little to no maintenance fees.
Cash management account
A cash management account combines investing with saving. You earn a high interest rate on your balance, but you also have immediate access to your money. Cash management accounts tend to require a higher minimum deposit than a standard savings account. Cash management accounts are way to invest at a competitive rate of interest without giving up access to your money for an extended period of time.
Retirement savings account
A retirement savings account is an account-based superannuation fund. It is an alternative to the traditional superannuation fund, and it is provided by banks, credit unions and other financial institution. As the name suggests, these accounts are used for storing, and earning interest on, your retirement savings.
Where can I compare bank accounts online?
Keep in mind that banks are competing for your business. Banks vie for your money by offering favorable interest rates, lower monthly fees and various accountholder perks. For instance, some banks will offer you a higher interest rate for every month that you don’t make a withdrawal from your savings account. You should also consider factors such as whether you need to provide notice to access your funds and if you have access to Internet and phone banking.
The bank where you have your transaction account may or may not offer the best savings accounts. To get as much as possible from your savings account, research your options. Rather than calling up all the banks in Australia to learn about their savings accounts, try a site like Mozo.com.au. Mozo.com.au is a website that enables you to quickly and easily compare financial products. Based on the criteria you select, mozo.com.au will return a list of savings account options along with the pertinent details about each one. You can perform side-by-side comparisons with information that is objective and unbiased.
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