What are savings games and how do you play them?

Saving up money is not usually associated with having fun, but it can be if you play savings games. One popular savings game involves rolling a set of dice on a set day each week. Whatever number they show, multiply it by 10 and that is the amount you put into your savings account that week. Similar games use a pack of cards – you draw a card, and whatever card you draw is the amount you’re required to save the following week.

What happens to an account when the account-holder passes an age limit?

In most cases, it will revert to a standard savings account which may not award the bonus interest rate offered to younger customers. If you do have an age-related account, your lender or financial institution should contact you before an age limit is reached and offer you suitable alternatives. However, this can serve as an opportunity to reassess your options on the market and compare accounts to find the best one for your needs.

Will saving regularly help me when I apply for my home loan?

Yes – showing a prospective lender that you have made regular contributions to a savings account will help create a favourable impression that you’re responsible with your money and are disciplined enough to save money regularly. This will certainly assist you when you’re applying for a home loan.

Will regular saving affect my credit score?

Yes – if you regularly make deposits into a savings account, pay off your credit cards at the end of the month, and pay your bills on time, this will result in giving you a higher credit rating, which will assist you when it comes time to get a loan.

Can I salary sacrifice into my savings account?

No – the Australian Taxation Office only permits salary sacrificing into a superannuation account . This is called making personal voluntary super contributions, and for the 2021-2022 financial year there is a cap or limit of $27,500 per year which can be contributed to a personal super fund.

Are there any restrictions on the number of savings accounts permitted per person?

No – in Australia there are no limits to the number of savings accounts you are permitted to open, although having multiple accounts may expose you to unnecessary account-keeping or administration fees. However, you may find it useful to have different savings accounts, such as if you were keeping a separate fund for emergencies.

Can I set up direct debits from my savings account?

No – you typically wouldn’t be permitted to set up direct debits from your savings account, as they aren’t designed to be used like a transaction or everyday account.