Opening a Savings Account
Savvy can show you how to open a savings account as well as help you compare the best deals on the market.
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Gone are the days when opening a savings account meant lining up at a bricks-and-mortar bank and filling out a stack of paperwork. Nowadays, online processes fast-track your application so you can be working towards your saving goals in just a matter of minutes.
It’s essential to find an account that makes meeting those savings targets easier. Savvy helps by giving you a side-by-side comparison of accounts, as well as detailed information on how to compare savings accounts to find the one that’s best for you.
How do I open a savings account?
Opening a savings account is relatively straightforward these days. Most institutions make it easy for you to open savings accounts online. If you’re wondering how to open a savings account, follow these simple steps.
1. Choose your account by comparing with Savvy
No two savings accounts are the same, and everyone’s got different goals. That’s why it is important to find an account that best suits your financial needs. By comparing with Savvy, you can find an account which helps you reach your savings goals. You can use our side-by-side comparative table to find the account with the best features, as well as use our in-depth guide to pick up tips and tricks for comparing deals.
2. Check that you’re eligible and prepare your ID
Once you’ve found a savings account that suits you, double-check you meet the eligibility requirements. These include:
- Age: In most cases, you must be over 12 years old to open a savings account by yourself. If you’re under 12, you’ll need to apply at a branch and be accompanied by a parent or caregiver.
- Residency: For tax purposes, you must be living in Australia or have an Australian residential address to open a savings account.
You will also need to provide a form of photographic identification. This can come from various forms, including:
- Passport: You can submit a copy of an Australian or foreign-issued passport which is either still valid or expired within the last two years.
- Driver’s licence: A back and front copy of your valid driver’s licence is sufficient as photo ID.
- Proof of age card: This card is issued by states or territories and can be used for general identification.
- Identity card: You can submit a foreign government-issued travel document or identity card as proof of your identity.
3. Submit your application
You can now apply to open your desired savings account. This usually takes about five to ten minutes and you’ll usually have to enter your personal details, contact information and proof of identification. Most financial institutions use secure portals where you can upload your personal information with the peace of mind it’s being kept in a safe place. If you want to open it at a branch, make sure you have all your documents with you.
4. Open your savings account
Once your application has been rubber-stamped, your bank should open your account. You should be able to start depositing your hard-earned funds as soon as you get a BSB and account number. Your financial institution will email or post you a ‘welcome pack’ which will contain information on fees and the terms and conditions.
What types of savings accounts can I open?
These days, the types of savings accounts available are varied. Whether you’re a parent opening an account for your child or a couple looking to make the most of your nest egg, it’s important to choose the right account for you. Some of your options when looking to open a savings account will include:
Online savings accounts
A common and easily accessible option, an online savings account usually comes with low fees and high interest. Most financial institutions will allow you to set up multiple online saver accounts so you can squirrel money away for different goals. This type of account usually comes with a linked everyday account option which makes it easy to access your money.
Bonus interest accounts
These accounts reward you with higher interest rates in exchange for hitting monthly account benchmarks. These can include minimum balance or deposit requirements and not exceeding your withdrawal limit. These accounts generally have very few fees and can help motivate you to save money.
Joint accounts
Joint savings accounts allow two or more people access to a fund, depending on the protections you’ve agreed on. You'll need to choose between giving each account holder access to funds or requiring all account holders to approve any withdrawals or changes (known as “either to sign” and “both to sign”, respectively). Usually taken out by couples, this account can also suit housemates, parents and their children and business partners who need a collective place to stash and access money. Having two people depositing money into one place can help reduce the impact of fees associated with accounts and boost the interest you earn.
Kids’ savings account
Learning how to manage money is one of the fundamental skills of life. Opening a savings account for your child can incentivise savings goals, allowing them to see in real-time how a small investment over time can grow into a large pool of money. Kids’ savings accounts often come with no fees, high rates and bonus interest features.
Term deposits
A term deposit locks your money away for a fixed term and at a fixed rate. This allows you to earn interest on your cash without having the ability to dip into it. Terms can range from one month to five years depending on who you bank with. You’ll also get the choice to reinvest your interest or have it paid into a linked account. If you choose to reinvest, you can use Savvy’s compound interest calculator to see how to maximise your savings.
Compare savings accounts
Are you looking to grow your savings? Compare a wide range of savings accounts with Savvy so you find the best deal in Australia and the highest interest rate to help grow your savings.
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Disclaimer: Savvy is not advising or recommending any particular product to you. We provide general information on products for the purposes of comparison, but your personal situation or goals are not considered here. Although we try to make our comparisons as thorough as possible, we do not have information on all products on the market on our site.
You should always consult a given offer's PDS or further documentation in the process of deciding on which loan to choose, as well as seeking independent, professional advice. If you decide to apply with one of the lenders listed above via our website, you will not be dealing with Savvy; any applications or enquiries will be conducted directly with the lender offering that product.
How should I compare savings accounts?
Interest rate
Finding a competitive interest rate will help you reach your savings goal sooner and get the best return on your money. For example, if you deposit $1,000 every month over five years at a rate of 2% p.a., you’d earn $3,047 interest, compared to if you invested at a rate of 1.5% p.a., which would see you earn about $800 less. By comparing with Savvy, you’ll give yourself the best shot at finding the highest rate among financial institutions. You can use our online savings calculator to see how much interest you can earn on your money at various rates.
Accessibility
If you’re someone who’ll need to tap into your savings from time to time, how accessible your money will be is an important factor in terms of what to look for. Online savings accounts make it easy to dip into your funds, whereas locked accounts like term deposits leave your money virtually untouchable.
Fees
Look at the fees your financial institution will charge on your savings account. While they may seem insignificant, monthly charges such as $4 for account keeping or a $2.50 paper statement fee can add up over time and eat away your interest.
Introductory offers
Financial institutions offer introductory interest rates as a way to entice you to open a savings account with them. These rates provide a short hit of high interest for about three or four months before reverting to a lower base rate. Always check this base rate as well as how long your bonus interest period will last before signing up for your account.
Linked accounts
Linked accounts can take some of the headaches out of managing your money. They allow you to transfer money straight from your savings to an easily accessible everyday account. Some institutions make linked accounts compulsory, so it’s important to check this when you're comparing deals if you don’t need to open one.
Frequently asked savings account questions
Our savings calculators
Use our savings calculator to help you calculate how much you could save over a set timeframe based on different deposit sizes and frequencies.
Your savings can put in work for you. Crunch the numbers to see how much interest you could earn on top of your interest by compounding daily, monthly and annually.
It's crucial to have a clear idea of your monthly household budget to see where your money is going and where it could potentially be better spent.
If you're applying for a loan or need to know what your salary is for your tax return, you can use our annualisation calculator to work out what you'll earn this financial year.
Setting savings goals is important. With this tool, you can work out how much you'll need to deposit to reach your financial aims over a set timeframe.
Just as important as knowing how much to deposit is working out how long it'll take to reach your goals. This savings goal calculator can help you do just that.
