7 things think about when choosing your next savings account

So you’ve just mastered the art of sticking to a budget and now have some money set aside for a rainy day or your next holiday. You might be wondering which savings accounts you should keep your hard earned money in. 

Well, there are several features to weigh up when looking at savings accounts and deciding which one suits your savings habits and needs.

Here are 7 features to keep in mind when picking your next savings account:

1. Interest rates 
2. Fees 
3. Multiple accounts
4. Apps 
5. Conditions
6. Cards
7. Round up

Let’s get into how you can choose the right savings account for you.

1. Interest rates 

The primary suspect of selecting a savings account is the interest rate, this is what helps your balance grow over time. A savings account will come with a standard interest rate, and can also include a conditional maximum standard rate. This competitive rate can come from introductory or bonus offers; or conditions such as required deposits, withdrawals and transactions. 

Consider what amount of interest you hope to accumulate and what type of actions you are willing to take to reach any maximum rates if there are any.

2. Fees 

Something to look for is whether or not a savings account has fees. This fee will come out of your savings account funds which you may not want, so it’s important to know the fine print.

3. Multiple accounts 

You may need a linked transaction account to transfer money in and out of your savings account. Be sure to check if this is required to be the same bank as your savings account, and if there are any extra fees.

4. Apps 

Online savings accounts are easily accessible via apps on your phone and can have extra features to help meet your savings goals. You can create budgets, goals, categorise your spending and set up automatic payments.

5. Conditions 

Savings accounts may have conditions to meet in order to get a certain interest rate. These conditions can include:

• Limited amount of withdrawals per month

• Minimum monthly deposit requirements

• Continually growing your balance each month

• Making purchases with your linked transaction account’s card

Make sure you are familiar with what kind of criteria you need to meet and make sure it suits your savings habits.

6. Card

If you are interested in a physical card, some savings accounts offer a card to withdraw money without transferring into your transaction account.

7. Round up

Some banks now offer a round-up feature which allows you to round up the cost of purchases from your transaction account and transfer the excess into your savings account. 

Now that you’re on your way to being a savings account expert, it’s time to start researching your next savings account. At Mozo we compare all the data for you to help you find the best savings account for you.