Save $1,031 with a HISA | Dollar Saver tip #63

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Save: $1,031

Tip overview:

Put your savings to work with a higher interest rate, and do it soon. With compound interest, time is money!

The new year is a great chance to get serious about saving money. Interest rates on savings accounts are much higher than they were a year ago.

Putting your money into a high interest savings account will help you save more. And the sooner you do it, the better.

Did you know?

The average Australian saves $705 a month. People in NSW save on average $782 while Tasmanians save $529 a month.

The average Australian has $40,617 in savings, according to Finder's Consumer Sentiment Tracker.

And the average savings rate across our database is 2.55%. If you left $40,617 in a savings account at this rate for 12 months and didn't touch it, you'd earn $1,047 in interest.

But it's easily possible to earn 5% or higher on many accounts today. At 5%, you'd earn $2,078 in interest in 12 months.

That's $1,031 more.

And the sooner you switch, the better. The way compound interest works means the longer you save, the more interest you earn.

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