Wealth Connexions explains the importance of saving and the different types of savings accounts available to you.
Whether you’re looking for a savings account to deposit money in which you won’t touch, or if you’re simply looking for something better than what you have, Wealth Connexions has got you covered. In this blog, we explain the importance of understanding what you’re after so that you can find the right savings account for you. Our financial advisors in Brisbane have years of experience and are always willing to assist you if you have any other queries.
What’s the point of a savings account?
A savings account is a great opportunity to keep track of what comes into your account and what leaves. Some Australian’s love savings accounts because they have to move their money into a separate transaction account, allowing them to have a better understanding of where their money is going. Either way, savings accounts are great opportunities to raise those figures over time. Other Australians like these accounts because it keeps everything separate, they’re able to lock their finances away until they reach a particular goal, or in case of emergencies. There are many benefits to seeking a separate savings account, though please be aware that some banks won’t allow you to set up a savings account unless you have a transaction account with them as well.
Is each bank different?
The short answer is, yes, each bank is different. Each bank will have its own set interest rate, which will allow your sitting money to gradually grow. Currently, interest rates are extremely low due to the devastation of the COVID-19 pandemic, however, some are still higher than others. Your best option will be to compare the savings accounts of the known banks of Australia to find the most suitable bank for you. This will allow you to differentiate what is the most appealing for your savings account, whether it’s accessibility or a higher interest rate. The features to be mindful of when comparing banks are withdrawals, minimum or maximum balance, account fees, regular deposits, and whether you have to have a linked transaction account. If you’ve found a suitable option for you and your savings, though you still think that you can do better, financial advisors Brisbane recommend checking back regularly for changes of each bank.
What are the benefits?
There are many benefits when applying for a savings account. The most common reason Australian’s have a savings account is that it allows them to place their finances into perspective, while also knowing that there will be a sum for emergencies or for that magical Hawaiian holiday they’ve been dreaming about. Whatever it is, savings accounts are always a fantastic idea. Another benefit to consider is that there are a variety of accounts to suit your particular needs. For example, some banks will have a short period where the interest rate is higher, better known as the honeymoon rate. Other banks may offer no fees, where they will allow your money to sit in their account at no extra cost for withdrawals, no matter the period of time. By comparing each bank across Australia, you or Wealth Connexion financial advisors Brisbane will be able to support and guide you, as well as your income, in the right direction.
