When comparing savings accounts you will notice that with some, interest rates are tiered in accordance with the account balance. Most savings accounts apply the top bonus interest rate on balances under $250,000, and once you hit this balance size the interest rate drops dramatically.
When you are shopping for a place to park a significant amount of savings, there are a few things worth considering.
The government guarantee
The Australian government guarantees deposits of up to $250,000 in Australian banks. This means if you had a balance larger than this, the portion over $250,000 wouldn't be protected in the (unlikely) event the bank went under. You could consider splitting your balance up between more than one bank, to ensure all your money is protected by this bank guarantee scheme.
If you're looking for a safe place where you can set-and-forget your large balance, you might not like a savings account that has monthly account conditions. Look for one that doesn't require you to jump through too many hoops or, consider a term deposit instead as these have no monthly conditions to meet.
If you're happy to meet some account conditions each month in order to get the highest bonus interest rate, you might find that you'll get a higher rate on a lower balance. Consider what the rate would be if you split your $250,000+ balance up between two different savings accounts, to take advantage of the higher rates.
The Finder Score is a simple score out of 10. The higher a savings account's score, the better we think it is for the average customer.
We score each savings account in our database of hundreds based on a data-driven methodology with 2 main criteria: Does the account offer a high interest rate? And is it easy for savers to actually earn that rate?
Read the full Finder Score breakdown
Picture: Shutterstock
Here are a few different ways to save money automatically without lifting a finger, including using round up savings apps and tools.
We compare the top children's savings accounts offered by some of Australia's biggest banks and highlight the benefits and rewards on offer.
It’s possible to open more than one savings account with the same bank but doing so could reduce the amount of interest you earn.
Compare savings accounts that reward you for saving regularly.
Gift savings accounts are just the beginning for starting kids off on the right track to a secure financial future.
Your savings goal can be closer with an incentive account that pays you bonus interest just for making a small deposit each month.
A simple feature like compound interest can make a big difference in how your savings grow.
Your listing of Australian financial institutions that offer savings and bank accounts.
As you approach retirement age, managing a fixed income can be a cinch with a pensioner high interest savings account for the flexibility you need.
