Financial institutions offer a wide range of long-term savings account options for their customers, with various levels of flexibility. These accounts include:
Online savings accounts
The most widely available form of savings account, an online saver is the perfect entry-level savings account for many people. These types of accounts often don’t require you to have a minimum balance, so you can open an account with nothing and start building from there.
Bonus saver accounts
These savings accounts reward you with a high interest rate if you fulfill monthly requirements. Conditions generally include monthly minimum account balances or deposits (either a certain number or a dollar figure) but can also hinge on not making any withdrawals. If you don’t meet these requirements, you’ll earn interest off a much lower base rate for that month. By comparing with Savvy, you can find an account with manageable requirements which best suit your financial circumstances.
Business savings accounts
Tailored to self-employed people or small business owners, these funds allow you to stash cash for an upcoming project or future tax payments. While these accounts operate similarly to standard savings accounts, they can only be opened if you have a registered ABN. You can also only use your savings for business-related spending.
Term deposits
A typical risk-averse form of saving, a term deposit allows you to lock away a sizeable deposit for a set term. These terms can be anywhere from one month to five years and offer you a competitive fixed interest rate so you’re protected from any movements in the cash rate. If you need to access your money, you’ll need to provide at least 31 days’ written notice.
Kids’ savings accounts
Children’s savings accounts allow parents to teach their kids the fundamentals of finance and the basics of savings. Most institutions offer these accounts, which reward children with high interest for meeting monthly account requirements.
Joint accounts
Suited for couples wanting to save towards a shared goal, financial institutions allow most accounts to have dual signatories. You’ll have to agree on the protection and access over the account, with ‘one to sign’ or ‘both to sign’ options usually available.
Retirement accounts
Operating similarly to a super fund, these accounts allow you and your employer to contribute towards your retirement. The key difference between this and a super fund is your savings won’t be impacted by market volatility. Largely relegated to the endangered species list of accounts offered in the banking world, a few certain institutions still offer this type of savings account. Once you hit retirement age, some banks offer accounts tailored towards pensioners over the age of 65. The benefit of these accounts is you get unlimited access to your money without it affecting your interest rate and can take advantage of combined transaction and savings accounts.
