How to score a better interest rate on your savings account
Some savers are receiving almost zero interest on their bank deposits, despite rates around two per cent still being available. Here’s how to find them and boost your income.
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Savings account interest rates are sinking further, prompting a warning for consumers to avoid being complacent about their cash in the bank.
Dozens of deposit rates have been trimmed in the past month and the trend is tipped to continue, even if the Reserve Bank keeps its official interest rate on hold on Tuesday at
0.25 per cent, as expected.
Many savings accounts have promotional rates – usually for just four months – before dropping back to a lower base rate, and research group Canstar says customers need to be nimble.
“Right now a whole bunch of banks have base rates that are only 0.05 per cent,” said Canstar’s group executive of financial services, Steve Mickenbecker.
“You cannot leave your money at 0.05 per cent – you owe it to yourself to get a more reasonable rate.”
Comparison website Mozo director Kirsty Lamont said there are “still a handful of providers offering rates in the 1-2 per cent range”.
The best deal in today’s market comes from Westpac, but its 3 per cent offer is only available to 18-29-year-olds on balances below $30,000.
“Try and maximise your savings by setting up a direct debit each month, so even in an era of low rates you are still growing your savings as much as you can,” Lamont said.
Originally published as How to score a better interest rate on your savings account