Saving Accounts

Guide: Personal Finance

Choosing a Savings Account

If you’ve read through all the types of savings accounts above, you probably have a pretty good idea of the type of account that suits you. There is usually a trade off between account flexibility and the interest rate paid, so if you can afford to bundle off a wad of cash and forget about it for a few years, then you will reap rewards.

When selecting a savings account, the first point to determine is if a savings account is right for you. If money is tight, you may be better off sticking to a current account where you are not penalised for making frequent withdrawals. Think carefully about your financial situation, how much you can afford to save, and whether or not you think you might need to get quick access to your savings. Even the best laid plans sometimes go awry, and if there’s a household disaster you want to be able to get to your savings without incurring huge penalties.

Once you have a handle on your financial situation, the next step is to compare AER, and read the fine print! Make sure there are no hidden charges, unreasonable penalties, or restrictions that you cannot live with.

Top of Page