Are there any restrictions on how much I can deposit in my account to accrue interest?

Yes, there may be – some high-interest savings accounts have a maximum limit as to how much you can deposit, but these tend to be very high, such as $250,000. There is also a cash deposit limit in Australia of $10,000. If you deposit more cash than this, the financial institution is obliged to report the deposit to the Federal government, as part of anti-money laundering laws which came into effect in October 2011.

Will I have to meet certain conditions to qualify for receiving interest?

Yes – high-interest savings accounts often have conditions which have to be met to receive a bonus interest rate. These conditions are usually a minimum deposit requirement per month; for instance, you may have to deposit a minimum of $50 in the calendar month prior to receive the highest interest rate for the following month.

Will I earn more interest by putting my savings in a term deposit?

That will depend on the interest rate being offered for the term deposit , compared to a high-interest savings account. Term deposits can be compounded, depending on the length of the deposit. You can choose whether the interest is paid in a lump sum at the end of the term or paid regularly (monthly or annually) to allow it to compound.

What happens if I withdraw from my savings account?

Some savings accounts have withdrawal fees ranging from $5 to $15 to discourage withdrawals. Other accounts do not allow monthly withdrawals or limit the number of withdrawals it’s possible to make in any given month.

How do I find the best interest rate for my savings?

Comparing different savings accounts is the best way to ensure you get the highest interest rate available. Savvy can help you find and compare accounts so you’re able to make the best financial decision for your personal circumstances.

Can I have multiple accounts accruing interest at once?

In theory, nothing is stopping you from holding multiple savings accounts, but this may not be the best idea to earn you the most interest, as you could end up paying several different sets of account fees.

How old do I have to be before I can start earning compound interest on my savings?

There are savings accounts for kids of all ages, starting from newborns up to the age of 18. Some savings accounts for kids have to be jointly in the names of the child and parent, while others allow the child to remove their parents as signatories once they reach a certain age, typically 10 years old.

Is it better to combine my savings with my partner to generate more interest?

Having a joint account with your partner won’t earn you any additional interest, but it may reduce the account fees you have to pay if you have one account instead of two separate accounts. Have a look at the fees you may be paying and decide if you can save money by combining your savings into one account.