6 benefits and features of savings accounts

Business News | 20 Jul |

We are all thoughtful of our futures. We save money to use in times of need as well as for the fulfillment of our demands. Opening a savings account is the best-suited option for this purpose.

It helps you stock your finances and use them responsibly. The money deposited in a savings account can also be withdrawn as per the requirement of the account holder. Looking at the various needs of a customer, banks have also facilitated different types of savings accounts, including Suncorp Everyday Options, Judo Bank Term Deposit, etc.

Further, a savings account also helps you earn a minimal interest on the amount deposited which compounds over time. Fortunately, people all over the globe have been recognizing the benefits of a savings account and so the numbers of savings account holders have been constantly rising.

According to a research, the evaluated worth of all the savings accounts in Australia is estimated to be $565 billion, with a person holding $29,091 on an average. So, if you are also looking at opening a savings account, here are a few features and benefits you must know.

1. Interest rates

Competitive and transaction interest rates will help you augment your savings at a higher rate. The interest rates of savings accounts differ from bank to bank and are offered on a yearly basis. So, a difference in the rates, as minute as 0.50% can help you earn a ransom amount of money in the future.

A competitive savings account will provide you a rate of approximately 1.5%, whereas a transaction account will usually offer you an interest rate up to 0.5%.

2. Bonus incentives

A bonus rate will be provided on top of the base interest rates if you are successful in fulfilling certain criteria over a period of time. To benefit from such incentives, you must make a minimum monthly deposit, make financial transactions through linked bank accounts, or set limits on the amount of money you withdraw from the accounts.          

Before availing these bonus rates, make sure to go through the terms and conditions as these rates might be applicable for a limited amount of time. Once you have all the information, make your financial decisions wisely.

3. Minimal amount of opening deposit

Some banks require you to make a minimum opening deposit before you can access your savings account. This deposit is generally made in return for the services of opening the account as well as maintaining it.

4. Minimum cash balance to be maintained

If you have a savings account, you are required to maintain a minimum monthly balance or pay a fixed amount of money per month. If you aren’t successful in meeting these criteria, the bank has the right to lower your interest rates or pay no interest for that particular month.                                                                         

Keep in mind your present financial circumstances before you open an account. You might incur losses without being thoroughly informed. You can also integrate automatic deposits which will help you fulfill the required criteria.

5. Frequency of withdrawals

Many savings accounts establish a limit on the frequency with which you can withdraw money from your savings account. For acquiring bonus incentives, you might not be able to make even a single withdrawal in a month. If you think you might have to make frequent withdrawals from the bank, then you must research banks that allow you to open a savings account with no limits on withdrawals.                     

Also, some accounts don’t let you access your money directly. So, if you need access to your savings, you are required to relocate it into your linked transaction account. Thus, if you think that you will have to withdraw your savings on a frequent basis, then open an account with ATM facilities.

6.  Automatic salary deposits

If you are a bit irresponsible or forgetful in savings-related purposes, then it’s advisable for you to open an account that provides the facility of direct credit. In this facility, your salary is directly deposited into your savings account from your employer every month.

Over to you…

A savings account provides the easiest option for pooling your finances and also carrying out transactions using them. Investing with the proper knowledge can help you save funds and even multiply it. After all, “Money saved is money earned”.

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