Interest rates are higher than they’ve been in over a decade, which is good news for savers. So, if you’re looking at making the most of the higher interest rates on offer, there are a few things you may want to consider beyond the interest rate itself to make sure you get an account that best suits your needs.  

A savings account is your virtual piggy bank. It typically has a high-interest rate and is often linked to an active transactional or everyday account to make transferring money between the two easier.

The idea of a savings account is to make it a little harder to dip into as opposed to a transactional account, therefore, savings accounts are not directly linked to a debit card.

Unlike term deposit accounts, which tend to lay dormant for a fixed amount of time, savings accounts allow you more freedom where you can save your money indefinitely with flexible options to access and move your money around. You should be able to save your money with the bonus of accessing your funds along the way. Interest is usually paid monthly.

Just about every banking institution has savings account options. When comparing savings accounts, you may want to consider the following factors. 

• Interest rates: Check out the interest rates on offer from a range of savings accounts as this will affect your account’s growth potential.

• Account linking: A savings account requirement may be to link to a transactional/everyday account with the same banking institute. They may offer a bonus interest rate as a drawcard.

• Sub accounts: Some savings accounts will offer the option of linking one or more sub-accounts which are accounts within accounts. This allows you to set the amount of money you want to transfer from the savings account into the sub-accounts for expenses such as emergencies, rent, and tax payments.

• Conditions: Make sure you are aware of any conditions and are able to meet them to qualify for any bonus or introductory interest rates. This may be making a regular deposit into the account.

• Fees: You may want to check for any monthly account-keeping fees and compare these for the best deal to suit you. Service fees are sometimes waived if a minimum monthly deposit is made.

How confident are you with online banking? You may want to consider this when choosing a savings account as nowadays, they are usually online only.

However, if you choose one that is linked to a transactional account, you may be able to bank your money in person and have it transferred to your savings account while you are being served. 

At the end of the day, the easiest way to help your savings grow is by transferring money directly into your savings account from another account with the same banking institute.

Make sure the bank is backed by the Australian Government deposit guarantee.

This guarantee provides protection to deposit-holders with Australian incorporated banks, building societies and credit unions (also known as authorised deposit-taking institutions or ADIs) up to the value of $250,000 in the unlikely event the financial institution fails.

Savings accounts are included in the guarantee, however, the banking institution in which it is held must be authorised for you to be protected by the deposit guarantee.