High Interest Bank Accounts the Way to Go

For those with mortgages, savings accounts will probably not be the best option, as they want to pay off their loans as quickly as possible. But for those wanting to get into the housing market or to save for their retirement, high interest bank accounts are often the way to go. The good news about interest rate rises is that savings interest rates are also going up, which can make saving money more attractive than borrowing it.

It is certainly a waste of your money to have it sitting in a low interest bank account, which is only useful for people who spend all their income from paycheck to paycheck. The good thing about many of the high interest rate online accounts offered by various financial institutions is that they offer good rates and access to your money when you need it. It is possible to have a high interest account linked to a transaction account and to transfer money between the two online or over the phone. You can then use the low interest transaction account to make EFTPOS purchases, pay bills and withdraw cash from ATMs.

The lines between online accounts, cash management accounts and other bank savings accounts are blurring, as many high interest accounts now have an online facility, making visits to the branch much less frequent and saving you time, money and stress!

You need to be careful when choosing high interest savings accounts as terms, conditions vary widely. Some accounts have high fees and others may require you to maintain a large balance. You may prefer cash management accounts, which tend to offer slightly lower interest rates than online accounts, but can also be more flexible and have a higher interest rate than traditional savings accounts.

Due to the many banking options, people should know what they want from their high interest account. You may need to consider the deposit you are going to make, how often you will make additional deposits and withdrawals, and any other requirements. Some banks may charge for withdrawals over a certain daily limit, for example $5000.

For more information on high interest bank accounts go to http://www.creditworld.com.au/bank-accounts.html.

ING Direct has earned a great reputation for offering savings accounts with excellent terms and conditions. ING’s Direct Savings Maximiser has a high interest rate calculated daily at 6% per annum, regardless of the amount of the initial deposit. There are no fees, minimum deposit, minimum balance or fixed term. The great thing about Maximiser is that it can be linked to your existing account, so you do not have to open a new one. ING Direct has 24-hour 7 day customer service.

Many other financial institutions, including most banks, have competitive high interest bank accounts. But even some of the accounts within the same institution vary widely. So you should look carefully at the fine print before deciding to invest your hard-earned money.

Summary

• Now is a good time to save with savings interest rates rising.
• You should put your money in high interest bank accounts, which may or may not have online facility.
• You should be careful of the fees, terms and conditions associate with each account.
• You need to know what you want from your high interest account, do some research, and make a decision based on your financial circumstances and needs.

Article correct at its author date: Dec 2006. Copyright Virtual Office Space, Any unauthorised reproduction of this article will be prosecuted to the full extent of the law. Credit Cards Australia.

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