Types of Savings Account

Saving money really should be the hardest part about, well, saving money, and deciding where to put it should be a relative breeze. But then, what would banks do without all their fine print?

Here are the major savings account types...

Instant access savings accounts.

Pros:

• Flexibility of moving money to your transaction account
• Instant withdrawals from ATMS
• At call savings account - if a synonym a 'pro'

Cons:

• Lower standard interest rates

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Introductory rate savings accounts

Pros:

• High rates on savings - how we love them!
• Great incentive to pile up your money straight away

Cons:

• Ugh, we tire of this lower standard rate. On average, the rate falls to about 4% after 1 year

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No fees savings accounts

Pros:

• Fee free savings accounts - at last!

Cons:

• Some fee free accounts offer less interest, fewer features, more conditions

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Online savings accounts

Pros:

• Fee free savings accounts (almost always)
• Easy to access banking
• No queues or unsightly bankfolk

Cons:

• No human contact

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Minimum deposit savings accounts

Pros:

• High interest rates, forever
• Regulated savings that force you to contribute

Cons:

• Less or no interest if you miss a payment
• No withdrawals (typically)

Minimum balance savings accounts

Pros:

• High interest rates, ongoing
• Flexibility on withdrawals above minimum balance

Cons:

• Less or no interest if your balance dips below the minimum