How much of a difference 0.50% can make to your savings

Here’s how Rebecca made $350 for 20 mins work.

There is easy money to be made by comparing savings accounts. Consumer deposits are an important market for banks, you can make up to hundreds more every year by keeping an eye on what the banks are giving for savings deposits and opening a new account when you see a better deal.

Savings accounts are an online product. You can open a new account from your home and you can leave your everyday banking products untouched when you switch your savings provider. Have a look at the difference of half a percent on the Average Australian’s savings account balance.

How much of a difference of 0.50% can make to your savings

rebeccaRebecca (the Average Australian) gets an average 2.50% p.a. from her high interest savings account provider. After 5 years her initial deposit ($40,000) and ongoing contributions ($728 p.m.) gets her $8,115.96 extra in interest. A difference of half a percent gets her about $1,730 more, or about $350 more a year.

It takes less than 20 minutes to compare providers and open a new high interest savings account. Our online comparison tools make it very easy to compare these accounts by the expected return on your investment. You can see the important features of these products side by side and customise our savings account comparison tables to your financial needs.

If you are not yet convinced, use our savings account calculator and find out how much a small difference in your savings account interest rate can affect you end balance.

These accounts give you bonus interest

If you compare products regularly, a 0.50% p.a. Interest bump on your savings shouldn’t be hard to find. High interest savings accounts offer bonus interest, and you can get up to a full 1.50% p.a. more than the standard variable rate.

Some accounts give you bonus interest as a condition, such as when you meet a minimum monthly deposit requirement, or you can get bonus interest as a one time only introductory offer only. Unlike a term deposit, there’s no minimum investment period, you can switch to a new account to keep getting the bonus introductory rate of interest.

Do you want to get a rate up to 3.60% p.a. on your savings?

The top accounts which will give you more for being a good saver

From the accounts we compare, the following providers offer account with the highest bonus rate of interest, either for an introductory period or when you meet the bonus interest conditions.

*Rates up to 21 April

The top accounts which will give you a standard flat rate no matter what

These savings accounts provide the highest standard variable rate of interest out of all the savings account products we compare.

*Rates up to 21 April

Who is the average Australian?

We’ve done a few surveys finding out about Australians so we can better help the country compare and save money on their finances. We’ve used this information, as well as data from the ABS to come up with a profile of an ‘Average Australian’. We’ve estimated the Average Australian is 38, has a mortgage of about $370,000, $45,000 in savings and retirement savings of about $40,000. Rebecca (the average Australian) can afford to keep saving an extra $728 every month. She has her money invested in two assets: a high interest savings account and a term deposit.

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Jacob Joseph

Jacob is a writer and video journalist with finder.com.au. Credit cards, personal loans and savings accounts are his bread and butter, and he likes nothing more helping people understand the sometimes overly complex world of personal finance.

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