Top Online Account Tips

Font size :

They’re certainly not traditional accounts, and they don’t usually come with over the counter, or cheque facilities. But, what these accounts lack in extra features they more than make up for in high interest rates.


They are simple, uncomplicated savings accounts that will help maximise your savings without piling on the extra fees. Nearly all banks, building societies and credit unions offer online accounts, so check out our tips and get started!


1. CHECK THE RATES


Banks love their customers to have online accounts because they mean very low costs. That’s why banks will reward you with a compounding interest rate of 5-6%, which is generally calculated daily and paid monthly. Just remember to check the actual rate that applies - as it is variable not fixed - and can fluctuate up or down at any time.

 

2. READ THE CONTRACT


Make sure you read the fine print when signing up. Most online savings account need to be linked to an everyday transactions account, be it with the same bank or a different one.  While the online account is fee-free, they may attach charges to the standard transaction account.

 

3. LOOK BEYOND THE HEADLINE RATE


Banks usually entice new customers with high interest introductory offers, but these high rates usually have an expiry date. In some cases they can even go down by 1.5%. Make sure you separate the wheat from the chaff by calculating the total interest you stand to earn.

 

4. DO YOU MEET ALL THE CRITERIA?


Double check that the headline rate will actually apply to you. The best rates are sometimes only offered to customers who meet certain criteria, such as agreeing to make no withdrawals throughout the month.

 

5. FOLLOW THE RULES


By strictly adhering to the conditions attached to your account, such as making minimum monthly deposits, you can force yourself to make great savings. Use the high interest rate on your savings account as an incentive to make regular deposits and build up your savings nest egg.


For more great personal finance tips and product reviews, check out the latest issue of Your Money Magazine, click here to subscribe today.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Saturday, Sep 23, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords