Why you should move your savings stash to a pensioner’s account post retirement
Did you know that when you retire, the everyday transaction and savings accounts you have may no longer suit your financial needs? Now it’s understandable if all you want to do when you leave the rat race is put your feet up, sip a well-earned margarita and not worry about where your money is stashed. But finding a savings account specifically designed for Aussies receiving a pension, could really make a difference.
This is because, you’ll most likely have less money coming in than you did when you were working 9 till 5 and a number of bonus saver accounts require you to deposit a minimum amount each month, into either a linked transaction or savings account to be eligible for the full ongoing interest rate. So, if you have a less regular income, then you could wind up missing out on the bonus interest rate you used to benefit from.
Mozo’s banking expert Peter Marshall said, “The maximum basic Age Pension you can receive is below $900 per fortnight, so if this is your only source of income, it might be difficult to meet all the criteria needed to earn full ongoing interest rates offered with some bonus saver accounts in the market.”
Perks of pensioners accounts
Interest rates for pensioner accounts are usually tiered, meaning the rate will increase or decrease depending on how high or low your balance is, not how many hoops you can jump through in the month. These accounts are designed to be more suitable for those on a pension, who are no longer receiving a regular monthly or fortnightly salary.
Pensioner accounts often come with a debit card and easier access to funds, meaning you can both earn interest on your savings and also make everyday transactions. Most also come with zero monthly fees and the ability to make mobile payments, via Google or Apple Pay!
Award-winning pensioner accounts
Pensioner accounts are just one of the specialised accounts that our data experts look at when determining the winners of the 2020 Mozo Experts Choice Awards for Savings and Bank Accounts. Mozo’s criteria for best Pensioner Account includes no account-keeping fees, debit card fees or electronic transaction fees and a look at how competitive particular interest rates are for balances of $20,000 and $60,000.
This year in particular, we found that some banks specialise in...well specialising! Banks that won a Mozo Experts Choice Award for best Pensioner Account also scooped up Mozo Experts Choice Awards for self-managed superfund accounts and small business accounts.
Digital bank BNK in particular (formally Goldfields Money), won both a Mozo Experts Choice Award for best Pensioner Account for its Retire-Style account and a Mozo Experts Choice Award for Small Business Exceptional Everyday Account, for its Goldfields Money Boss Access Account.
As CEO Simon Lyons said, “To win both categories really shows that BNK’s shop front of products provides real value to a large spectrum of Australian customers.”
“BNK aims to be the bank of choice of all enterprising Australians and a smart and agile bank that is focused on providing solutions to a broad range of Australians who are not well serviced by the bigger banks.”
Want to read more about the Mozo Experts Choice Awards? Head to the Mozo Experts Choice Savings and Bank Accounts Awards page for more information on how the winners are chosen and to view a full list of products that have come out on top in 2020 so far.