Selecting and Applying for a High-Interest Savings Accounts

High-interest savings accounts can be a great way to save and grow money without any investing or banking experience. Also known as a high-yielding savings account, this is simply a savings account that accumulates more interest than conventional ones, thus making them more suited for investors and individuals who need to store funds for long periods of time. Most of the time there are no fees associated with opening a high-interest savings account, however there is sometimes a minimum deposit required. Nearly every major financial institution in Australia offers such an account, so it can be difficult to choose one. The following information can help anyone choose a high interest savings account and apply for one with ease.

Comparing Interest Rates

The first step in selecting the most suitable high-interest savings account is finding the banks that offer the highest APY (Annual Percentage Yield). Generally, a high-interest savings account should have an APY higher than 4.0%. The best can reach up to 6.75%, but the average is roughly 5.0%. Most banks calculate the interest daily, and some offer special introductory offers with even higher rates for the first few months the account is open.

Other Factors to Consider

Some banks offer special deals, such as an interest rate premium for savers with a balance over a certain level, or who add a minimum amount to the account each month. As well, some banks require the high-interest savings account to be linked to a transaction or other account with the same bank.

Other factors to consider include the reputability of the financial institution, the abundance and location of branches, the overall customer service offered by the bank, and the user-friendliness of the bank’s website.

Submitting the Application

Once a bank account has been selected it is time to begin filling out the application. With most banks this can be done in three ways – online through the bank’s website, or via phone or in a branch location with the assistance of a qualified bank agent.

Applicants will need to verify their identification, as well as confirm their age is over 18 and that they are Australian residents for tax purposes. They should be prepared to provide an Australian residential address, a telephone number, and an email address. Note that for joint accounts, generally each applicant must provide a separate email address.