To kick off Mozo’s ten week Santa Saver challenge, in this blog we will be focusing on tips that will help you set yourself up for long term success. Like Santa’s sleigh, your bank and savings accounts are the tools you’ll be using to reach your goals and monitor your savings success.
Just make sure you choose the right ones, as a hard working savings account and a fee free bank account will keep your cash in check for the length of this challenge.
Savings in a high interest savings account over 10 weeks – $250.76
Some of you may choose a different way to track your savings, but for most of you, a savings account will be the best place to park your extra cash so it’s earning you interest along the way and your cash is out of reach of temptation.
For instance, if you deposited $25 a week into RaboDirect’s High Interest Savings Account with a 3.50% introductory rate for four months (reverts to 2.55%) by the time Christmas arrives you would have saved up a plump $250.76. Keep in mind while RaboDirect only requires you to have a linked transaction account to receive the juicy interest rate, many other savings accounts in the market have conditions attached like requiring you to deposit a minimum amount each month and make no withdrawals.
To compare some of the top savings account deals in the market, use our savings account comparison tool here.
Money saved by switching bank accounts over 10 weeks – $38
Maybe it was years ago that you opened your bank account and therefore haven’t thought about switching but it could be the quickest way to save.
Say you switch from a bank account with a $5 monthly account keeping fee to one like the ING DIRECT Orange Everyday account that is free of fees, you will save yourself another $12 before Christmas. On top of this, if you deposit your salary each month, you’ll receive 2% cashback on Wave & Save (contactless) purchases under $100 which equals even more savings. One Mozonian received $10.39 in ATM and Wave & Save rebates in one month alone so averaging this out over 10 weeks means $26 coming straight back into your bank account just for doing your usual shopping.
If you’re not sure how to switch bank accounts, it’s simpler than you think, read a recent step by step blog about how to do it here.
TOTAL POTENTIAL SAVINGS – $288.76
Once your new bank and savings accounts are set up and ready to go, ask yourself if there’s any other money lying around and give yourself an intro bonus. Do you have money in an old account that’s better off contributing towards your new goal in your shiny new account? Move it.