At different stages of our lives we all want to save for something exciting; a new house, car or holiday, just to name a few. You wouldn’t use a savings account for long term savings to provide your income in retirement for example. To enable you to have discipline to put the funds aside the saved funds really need to be in their own account earmarked for your end goal. This will help you to achieve your savings goal.
If you are managing to discipline yourself and put this money aside then you want it to work for you in the best way possible. The first thing to look for is the interest rate on the account. Check the market, is this the best rate around? Often the advertised rate isn’t the best the bank can do. Put some pressure on your bank representative, is this the best they can do?
Many savings accounts don’t have monthly bank fees. I would certainly look for one with no fees. You need to look past just the ongoing fees and ensure there are no transaction fees also.
The new range of “progressive” savers seem to offer a greater interest rate if you don’t make any withdrawals for the month. If you think you have the discipline to put the money aside and not touch it this may be a good option for you.
You need to ensure you have good access to your funds so an easy to access online system or ability to visit the bank if this is your preferred option is important.
You need to look for one with no minimum balance for those times when you have used your funds for a goal and start working on the next one.
Everyone is different, and what suits them might not be best for you. So sit down, start with your goal and go from there as to what you need.
If you wish to obtain help working out the account most suitable to you or have any questions regarding this please give the staff at Ritchie Advice a call, we would be more than happy to help.
This advice may not be suitable to you because it contains general advice which does not take into consideration any of your personal circumstances. All strategies and information provided in this article is general advice only.
Ritchie Advice Pty Ltd ABN 12 150 128 448, is a Corporate Authorised Representative 408050 of Dover Financial Advisers Pty Ltd, Australian Financial Services Licensee No. 307248.
Erin Press
