While many of us tend to ‘set and forget’ when it comes to finances and the bank accounts we choose, it’s worth doing a review to ensure you’re getting the most out of your banking. Especially if you’ve had the same accounts for years or even decades.
You might have opened your savings account as a teenager and not really thought about it much since, but like everything to do with your finances, it’s a good idea to check your accounts to ensure they’re still giving you value.
3 reasons to do an account check-up
- You could save more. Switching to an account or term deposit that offers a better rate on your savings could mean a few more welcome dollars on your overall balance.
- Better functionality. Some accounts may not come with certain features, or there may be account limitations that you’re not aware of.
- You could pay off your mortgage faster. If you have a home loan without an offset account, refinancing to a loan that with this option can help you pay less interest.
What to consider when reviewing your accounts
Online savings accounts: These are a great option if you want to complement your everyday banking and grow your savings at the same time. Online only gives you total control of the amount and frequency of your transactions, plus you might benefit from a higher interest rate than a standard savings account.
Term deposits: If you’re looking for higher interest rates and are happy to lock your money away for a fixed term, a term deposit might be a good option. Term deposits generally require a minimum deposit amount and you can expect a certain return based on the set period of time.
Transaction accounts: There’s a lot to look for when choosing an account for your everyday banking, including unlimited transactions, no account keeping fees and features such as mobile payments. Being able to open and manage your account online is also a big time-saving bonus.
Savings accounts: If you’re looking at saving for something specific – like a holiday, a car or a home deposit – you may want a dedicated savings account that offers higher interest rates. This type of account might involve making a minimum deposit each month or limit the number of withdrawals you can make to qualify for interest.
Offset accounts: If you have a mortgage and it doesn’t have the option to link an offset account, you might want to consider refinancing. Offset accounts can help you to reduce the amount of interest you pay on your mortgage and pay your mortgage down quicker.
Youth accounts: Perhaps you want to open an account for your child or your teenager is looking to open an account for their first job. Often these accounts come with additional perks like higher interest or lower fees so it’s worth doing your research.
Grandfathered or discontinued accounts: Many customers still use products that are no longer available. If you still do, it’s a good idea to compare against newer accounts that are available. Switching to a newer product could mean a better interest rate and access to additional features such as OSKO or BPAY®.