When comparing savings accounts you will notice that with some, interest rates are tiered in accordance with the account balance. Most savings accounts apply the top bonus interest rate on balances under $250,000, and once you hit this balance size the interest rate drops dramatically.
When you are shopping for a place to park a significant amount of savings, there are a few things worth considering.
The government guarantee
The Australian government guarantees deposits of up to $250,000 in Australian banks. This means if you had a balance larger than this, the portion over $250,000 wouldn't be protected in the (unlikely) event the bank went under. You could consider splitting your balance up between more than one bank, to ensure all your money is protected by this bank guarantee scheme.
If you're looking for a safe place where you can set-and-forget your large balance, you might not like a savings account that has monthly account conditions. Look for one that doesn't require you to jump through too many hoops or, consider a term deposit instead as these have no monthly conditions to meet.
If you're happy to meet some account conditions each month in order to get the highest bonus interest rate, you might find that you'll get a higher rate on a lower balance. Consider what the rate would be if you split your $250,000+ balance up between two different savings accounts, to take advantage of the higher rates.
The Finder Score is a simple score out of 10. The higher a savings account's score, the better we think it is for the average customer.
We score each savings account in our database of hundreds based on a data-driven methodology with 2 main criteria: Does the account offer a high interest rate? And is it easy for savers to actually earn that rate?
Read the full Finder Score breakdown
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The People’s Choice Credit Union could provide you with the same savings opportunities as the big banks, with terms that you can live with.
International banking transactions can be made easy with the help of a multi currency account. If you find that you are consistently trying to manage currencies other than the Australian dollar, then consider banking your money in this type of account.
Rabobank PremiumSaver account is an option worth considering for savers looking to boost their savings balance, offering no ongoing fees, a competitive variable rate and 24/7 online access to your funds.
