How to maximise your savings account interest rate

There are loads of reasons for wanting to have a healthy stash in your savings account. Whether it's for a rainy day fund or a house deposit, it’s important to grow your savings. One way this can be achieved is by trying to maximise and get the most out of your interest rate. 

Here are 5 ways you can increase your savings and maximise your interest rate:

1. Look for high-yield savings accounts

One way to maximise the interest rate on your savings account is to open a high-yield savings account. As their name suggests, these accounts offer higher interest rates than usual with some currently sitting as high as 5%. 

However, keep in mind that with a lot of high yielding savings accounts, you may need to meet certain regular conditions to be eligible for their higher interest bonus rate. For example, with these accounts, you would start with a base rate of 0.25% but by meeting the conditions of the bonus rate (like regularly depositing $50 a month), you get an interest rate of 4.00% (a +3.75% added to the savings interest rate).

You should also keep an eye out for any promotional offers or bonuses that your bank may be offering. Some banks offer higher interest rates or cash bonuses for new account holders or for customers who meet certain requirements, such as maintaining a minimum balance or making a certain number of deposits.

2. Monitor your account

With the RBA continuing its rate rises, the change in savings accounts interest rates have been relatively frequent. It's important to monitor your account regularly to ensure that you're still earning a competitive interest rate and whether or not you should move to a new provider. 

3. Stash and grow your money 

Another way to maximise the interest rate on your savings account is to keep a large sum in your account and automate the cash you’re depositing in there. By increasing the amount of cash, you can increase the amount you gain on interest.

You should also consider making a budget so that you can consistently stash away what you can afford to. Only use savings as a last resort as some savings account providers will reduce your interest rate if you withdraw.

4. Stay informed on personal finance

Staying up to date on the world of personal finance is a great way of maximising your knowledge and helping you to make the decisions that help you save for your goals. Here at Mozo, we’re always keeping a keen eye on the latest news and trends that are going on as well as informing our readers on how best to save. 

If you’re looking for your new high interest savings account, check out the Mozo database. We have comparisons on a bunch of savings account providers so that you can find the one that works best for you.