New opportunities with higher interest rates
The new financial year provides new avenues to grow your savings. After a series of rapid interest rate rises, the options for savers look starkly different to the previous year.
“We have been in a low-rate environment for quite some time but with interest rates on the rise, now could be the time to consider really growing your savings,” Macquarie Bank’s Head of Payments and Deposits Olivia McArdle says.
With ample opportunities to grow their cash balance, savers could benefit from checking the interest rate on their bank accounts is competitive.
Australians also need to be conscious that some accounts come with catches. For example, some may pay low or no interest on transaction accounts. In other cases, they may require their customers to satisfy certain monthly conditions, such as depositing a minimum amount of money or completing a set number of transactions, to obtain a bonus rate of interest on their savings.
Others, such as Macquarie’s transactions and savings accounts for example, carry no such conditions.
“Sometimes interest rates are conditional on a customer completing some behaviour. Ask yourself whether you’ll remember to meet that each and every month in order to unlock the higher rate,” McArdle says.
By missing these steps, you may miss out on higher returns and the long-term impacts of compounding.