So you are earning how much interest on your savings he asked again.
A family member and I were talking money. He and I do a lot because both of us started with nothing and so we are always comparing and telling each other when a good deal has been found.
1.15% and if I deposit $1000 bucks a month into my everyday account that will go up to 2.85%
And so how much did you have to start with? he said more interested. At this point, he assumed I was talking about term deposits where you have to lock your money in for a period of time. I was not.
There is no limit cash limit or time limit this is my everyday savings account I replied but the catch for you is it’s an online bank.
Ah, I don’t like those he replied.
Hmm, I get it and once I thought that way but I have had this online account for almost 20 years and never had a problem. Ever. And it offers me a better savings account rate than any of the big four ever have.
Does this sound like a sales pitch? It’s not. I’m not affiliated in any way I have just learnt to know everything about where our money is and what it’s doing. I learnt the hard way because that’s my preferred method learning. I learnt this from lessons from not only from a bank manager with a money problem himself; who stole 1.1 million dollars and hid in the mountains for six weeks { I kid you not} but from getting greedy, taking advise from someone else who was handling our money and then losing 20 thousand dollars in the process.
Regardless of the reality is online is the future of banking. Bricks and mortar banks will eventually be phased out. Everything will be done online and people will be talking to chatbots instead; which isn’t a bad thing. Have you ever dealt with a teller whose paycheck depends on selling income protection? The National Australia Bank one of Australias biggest banks alone will cut 4000 jobs and repurpose another 2000 into other areas in its efforts to restructure, streamline and simplify its digital products.
So I think it’s important to get comfortable with online.
However, this is a story about getting the best interest rate for your money and here are three alternatives I have looked into recently {my yearly getting the best deal shuffle- which you should do also} offering more than the big banks average .80 %. It should be mentioned to get the bonus rate you need to open an everyday transaction account and a savings account but with no account or transaction fees for either, it’s not such a big deal I think and for me is out of sight out of mind- bigger dollars in the long run because I haven’t been tempted to spend it.
Here are three online alternatives to the big banks to get more from your money.
ME. Bank
Their online product is the aptly named Online Savings account. The base rate is 1.30% bonus rate is 1.55%. the highest rate is 2.85% Here for more info.
ING
Their online product is the Savings Maximiser. Their standard rate is 1.15% with a bonus rate of 1.45%. The highest rate is 2.80%. Here for more info.
U Bank
Their online product is Usaver Ultra. Their standard rate is 1.81% with a bonus rate of 1.06%. The highest rate is 2.87%. Here for more info.
* Warning I am NOT A FINANCIAL ADVISOR. Never act on someone else advice unless you have researched and thoroughly understood the fine print and consequences for your actions.
