What to look for in a high interest savings account

If you’re looking to grow your savings while keeping your money easily accessible, then a high-interest saving account might just be what you’ve been looking for.

However, sometimes it can be difficult to know if you’re getting the best high interest savings account. So, how do you know you’ve spotted a good savings account when you come across it? 

Compare savings interest rates 

The primary factor to consider when evaluating high-interest savings accounts is, of course, the interest rate offered. With the RBA lifting the cash rate to 4.10% in June, savers have begun to see high interest savings accounts as high as 5.50%.

Just keep in mind that most high interest savings accounts tend to be a bonus or conditional rate, which means you’ll need to fulfil a requirement such as regular deposits to get the full interest rate.

Some high interest savings accounts also adjust their rates based on the age of the user with some accounts having age limits up to 30 years old. 

Also, some high interest savings accounts have a high introductory rate but a low ongoing rate. If you opt for one of these accounts, make sure that the ongoing rate is also advantageous as savings should be allowed to compound over the long run.

Look out for fees 

While earning interest is an important part of high interest savings accounts, it's important to be aware of any fees or charges associated with the account. While small fees may seem unimportant, they can build up over time so it’s important to make sure you’re not getting unnecessarily burdened. 

Look for accounts that have minimal fees or ones that offer fee waivers based on certain conditions, such as maintaining a minimum balance or setting up direct deposits.

Check out handy savings account features 

Consider additional features offered by the high-interest savings account that can enhance your saving experience. Account features can be a good way of helping you work towards a goal, as some savings account apps have nice practical tools and visual aspects.

For example, some accounts may provide the option to set up multiple sub-accounts to organize and allocate savings for different purposes. Other times, savings account apps will be built into transaction accounts and can help you build budgets so you know how much is being spent on discretionary spending and how much is being dedicated to savings. 

Sometimes it can be difficult to know that you’ve got the best high interest savings account for you. That’s why at Mozo, we have a bunch of high interest savings accounts you can compare so that you get the savings account that works best for you.