Now may be a good time to compare your options for a seniors account.
Seniors accounts are specially structured to meet the needs of Australians over the age of 55 or receiving a government pension, like the Age Pension. Deeming refers to a system that the government uses to calculate the rate of return on savings accounts used by pensioners. By dropping that rate, the estimated income also drops. With that in mind, this is a good time for senior Australians to weigh their options concerning their savings accounts.
How does a retiree high interest savings account work?
A pensioner high interest savings account works almost the same way as your typical savings account offered by an Australian bank. One of the key differences is that many will have combined accounts, offering interest payments on the balance while allowing for unlimited access with a debit card and bill pay. This makes it easier on a senior to manage their savings and everyday spending from one convenient account.
You may also be interested in
When it comes to negotiating a pay rise, Financy founder Bianca Hartge-Hazelman warns against taking up flexible work rather than more cash. Read more…
More than half of Australian adults wouldn't be able to pay for a $5,000 unexpected emergency expense. Read more…
A huge 85% of Australians don't know what the interest rate is on their savings account. Read more…
It might seem like a long time away, but it’s important to start saving for your retirement now. Read more…
January was an unusually quiet month for interest rate changes across savings accounts and term deposits. Read more…
The new CUA eSaver Extra account offers an ongoing bonus rate of 2.90% p.a. when you deposit $250 each month. Read more…
What features do I compare?
As this is your money that will help see you through retirement, it is important that you are looking for features that can help ensure that your money grows. While comparing the different accounts available, look closely at the following features:
- No fees. You don’t want to be losing retirement money to monthly fees. Look for high interest savings accounts that do not accrue extra charges.
- Competitive rates. Check to make sure the rates being offered for your balance are competitive with other similar accounts.
- Accessibility. Many pensioner high interest savings accounts are tied together with your transaction account, giving you easy access through the use of a debit card. You may also be able to set up for direct deposits into the account and debits to pay for your monthly expenses.
- Available ATMs. If you will be making cash withdrawals, look at the bank’s ATM network to ensure that you will always be able to find one close by.
- Cheque facility. If you are still conducting transactions using bank issued cheques, look for an account that allows for this free of charge.
- Debit card. If you also want to be able to make purchases directly from your pensioner high interest savings account ensure that the debit card has a credit card logo.
- Flexibility. Pensioner high interest savings accounts are structured to make it easier on seniors to take care of their financial needs from one place.
- Fees. Banks typically do not charge fees for the use of a pensioner high interest savings account.
- Deeming. With the new regulations now in effect, pensioners will be showing a lower income rate from their high interest savings accounts.
- Bonus interest. Due to the nature of these accounts, earning bonus interest on balances is rarely an option.
- Terms. If you were to choose a term deposit as a part of your pension savings plan, you would be restricted in when you could withdraw the funds.
Have a question?