How do I know which saving solution is right for me?
There are four main solutions that can be used when saving for a goal, available at many banks and other financial institutions
Online Saver
Money at call which means you can get money whenever you need it, earns interest (bank pays you for giving them your money)
Reward Saver
Earns a really low base interest, but if you deposit say over $10 regularly like once a month, you
get a bonus amount of interest
Typically, interest rates for reward savers are slightly higher than online
You only get the higher interest rate if you deposit regularly and you don’t remove your money
This account rewards regular savers
Offset Account
if you have 100k home loan and you have 20k in your offset account, you only pay interest
on the 80k
Applicable for only certain types of home loans (variable) and can get in some banks
multiple offset accounts.
Micro-Investment Accounts
Introduces people to investing, you can choose a portfolio based on your level of risk
Some allow round ups (so if you spend $3.90 on a coffee, it will round it up to $4 and put the 10
cents into the investment account) and also regular deposits into the account can be automated
These accounts have a level of risk associated with them (i.e. not guaranteed returns)