With inflation at an all-time high and the cost of living weighing heavily on many Australian families, it’s crucial to think smarter about making your money work harder. Boosting your savings interest rate with a few strategic moves can significantly increase your returns.
Switch to a High-Interest Savings Account
One of the easiest ways to enhance your savings is by switching to a high-interest savings account. This small change can dramatically increase your earnings. Additionally, consider accounts offering introductory rates for an immediate boost. However, since these rates typically last only a few months, it’s essential to also review the account’s base rate to ensure your savings remain competitive after the initial period.
According to Vantage Financial’s database, the average unconditional rate in June 2024 is 1.40% p.a., while the average bonus rate is 4.61% p.a. Switching from the average unconditional to bonus rate can yield a difference of 3.21% p.a.
Keep in mind that bonus rate conditions vary and usually require maintaining a linked transaction account, making minimum monthly deposits, or refraining from withdrawals. Failure to meet these conditions results in lower base rates.
Consider Term Deposits
Term deposits are another excellent option for growing your savings. By locking your funds away for a set period, you can avoid market fluctuations and ensure steady growth. Your money will be safely stashed and growing without requiring constant attention.
Regularly Review and Switch Accounts
Staying proactive by regularly reviewing and switching your savings accounts is vital. Banks frequently adjust their rates, and loyalty often doesn’t pay in the savings game. Comparing different options and moving your money to where it earns the most can maximize your returns.
Conclusion
To make the most of your savings, consider switching to high-interest accounts, exploring term deposits, and regularly reviewing your options. Vantage Financial offers top picks for savings and term deposits to help you increase your returns. Always conduct your own research to understand any risks involved when switching providers.
Ready to make your savings work harder? Contact Vantage Financial today to explore your options and start maximizing your returns! Visit Vantage Financial or call us at 1800 595 500
For more personalized advice, feel free to reach out directly to our experts at Vantage Financial.
