To find out which accounts offered the best return, Your Money Magazine compared 16 high-interest savings accounts across two five-year saving scenarios. The results revealed that savers could add thousands of dollars more to their savings from earning interest by switching to a better account.
Your Money Magazine managing editor Jackie Pearson said high-interest accounts are a safe bet for savers, with the only danger not reading the fine print.
“The interest rate is obviously important but don’t look at it in isolation,” said Pearson. ”Often banks will advertise fantastic rates for a short honeymoon period to lure customers who then find the actual return on investment could fall very short of the mark.”
Your Money Magazine awarded medals to the top three accounts in each scenario and found the account with the highest advertised interest rate was not necessarily the best over the five-year period.
To achieve the maximum interest rate for the duration of the savings account, Pearson said savers should make sure they understand the conditions that come with the advertised interest rate and meet them precisely.
“We found with some products the difference between the advertised and base rate can be quite substantial,” said Pearson. “A savings account that ranks the best in one scenario might be quite disappointing in another because of particular conditions attached to the high interest rate, so it’s important to do your research and look at all the factors before making the switch.”
For more information about the best savings accounts plus the latest money management news and updates, pick up the current issue of Your Money Magazine. On sale at leading newsagents and online at www.yourmoneymag.com.au.
Your Money Magazine
Your Money Magazine is for all Australians looking to increase their personal wealth and achieve the lifestyle they desire. Your Money Magazine’s key focus is to educate the Australian public about money management by providing down-to-earth, easy to comprehend content, detailed product comparisons across a range of categories, and recommendations from some of the country’s leading industry experts.
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