Savings Account Comparison

If you are thinking about saving or you have already started saving you need to get the best interest rate. So below you will find a savings account comparison table on several the main banks and several smaller banks with good offers.

Term deposit v Online saver:

In the old days people used Term Deposits for savings. These are still a very good option and can give a good interest rate. The Problem is that you need to leave your savings in the account for the full term to get the full benefit. And you may need to shop around regularly to get the best deal.

If you need to get your money out early, it will “cost you”. They don’t charge you as such, they (as in the banks they) re-calculate the interest you have earned and mostly it works out to be very little.

The equivalent these days, and they are not exactly ‘new’ is an Online Saving Account. Broadly, these are accounts that you can move your money into and out of, at any time without interest penalties or fees.

 

Types of Online Savings Accounts

1. Savings & Everyday account combos
2. Introductory Rate accounts
3. Incentive Savers

 

1. Savings & Everyday account combos

To get the benefit of these high interest accounts you need to open and USE the banks ever day transaction account. They want you to switch your banking over to them from your old bank and are offering a number of benefits. In many cases it is worth while

Using both ME Bank & ING as examples if you use their everyday account you get:

• No monthly fees
• They will refund ATM fees

 

2. Introductory Rate accounts

Honestly, I would stay away from these accounts, unless you are happy to open a new account every 3 or 4 months. And let’s be honest there are more important things to do with your time – unless they offer a bonus that’s BIG, and most of them don’t.

Essentially these guys are buying your business in the hope you forget top move the account and then you get rubbish interest. All you get is bonus interest for a short period.

3. Incentive savers

There is a bit of a mix in here, some are like the old Christmas Club accounts (if you are old enough to remember) where you get rewarded for making regular savings deposits every month. But if you take any money out in that month you get next to zero interest (eg ANZ Bonus Saver).

It can be good if you have a long-term savings plan (eg the RAMS account that offers very high interest) but you just need to be careful about how you use the account.

The Ubank accounts are different, they are just saving accounts with highish interest.

 

Conclusion:

Don’t read the marketing, even the banks with low interest rates all say the offer “competitive interest rates”. make sure you  look around for an independant savings account comparison.

If your savings plan is long term with no plan to withdraw it – consider the RAMS Saver at 3%

Or seriously consider switching to ME or ING as their transaction account is very good. So is Macquarie (but no their savings account)

 

Enough preamble, here is the savings account comparison table. Interesting to note that none of the big banks offer anything decent…

Saving & Everyday Account Combos
Bank	Bonus Rate	Introductory period	Standard Rate	Conditions
ME Bank – Online Saver	2.85%	N/A	1.30%	You must have a an active everyday account with ME
ING Direct Savings Maximiser	2.80%	N/A	1.15%	Must hold a transaction account with ING and deposit $1,000 pm into the  account
Introductory Rate Savers
Bank	Introductory Rate	Introductory period	Standard Rate	Min deposit required to keep bonus interest
Rabo Direct High Interest Saver	3.05%	4 months	1.80%
Citibank Online Saver	2.85%	4 months	1.70%
St George Maxi saver	2.85%	3 months	0.80%
Bankwest Telenet Saver	2.70%	4 months	1.25%	You must also have a Bankwest transaction account
Macquarie Savings Ac	2.65%	4 months	1.10%
ANZ Online Saver	2.55%	3 months	0.50%
Westpac eSaver	2.51%	5 Months	0.80%
Commonwealth Bank NetBank Saver	2.51%	3 months	0.80%
nab iSaver	1.90%	4 months	0.80%
Incentive Savers
Bank	Bonus Rate	Introductory period	Standard Rate	Conditions
RAMS Saver Account	3.00%	N/A	1.35%	$200, but no withdrawals
Ubank – Usaver Reach	2.31%	N/A	2.31%	for balances over $5000
St.George Incentive Saver	2.00%	N/A	0.80%	1 depost each month & NO withdrawals
Ubank – Usaver	1.81%	N/A	1.81%
ANZ Bonus saver	1.71%	N/A	0.01%	$10 per month