How to choose the best savings account

Saving throughout your lifetime is important, so making sure you have the right account is key.

Saving money is a good habit to get into, and once you’ve started to put some funds aside each month, you’ll want to make sure it’s working hard. That’s why you need a savings account that works for you.  

We know that the amount of accounts available to you can get confusing. The best step to take is to talk to a financial advisor, or contact your bank so they can fit your needs.  To get you started, here are a few things to look out for, so that you can be ‘in the know’ when comparing accounts, and what differs between accounts to help maximise your savings. 

The most important differentiation is the difference between a transactional account - the one you spend for every day expenses from, and a savings account – where you want to add funds to regularly, not make withdrawals, and see grow over time.

What to look for in a savings account

Savings accounts offer a range of different features to support everyday usage or grow your balance, and here’s a look at the top features to look out for when choosing an account for you. 

Interest rate: 
Interest rates give you a monthly return on the amount of money you’ve saved, and so different rates offer you different returns. Generally, the higher the interest rate, the better for your savings, but keep an eye out for different types of rates. Introductory rates can seem appealing, but after a period of time, they revert to a lower base rate. Bonus interest rates can be great, if you don’t need access to the funds, as in most cases, receiving these bonus rates only applies if no money is withdrawn during the month. 

Low Account fees:
Some savings accounts have monthly account keeping fees and this can especially be the case when compensating for good interest rates. Fees that you may experience could be branch deposit fees, transaction fees or ATM withdrawal fees, so it’s worth knowing how you plan to use your savings and transactional accounts, to save yourself unnecessary costs. 

Easy access to your savings:
You may choose that you’d rather have access to your savings via an app or over the phone, rather than needing to attend a branch to conduct a transaction. Some people even save better when the temptation of having instant access to their savings is removed. Whatever your preference, make sure you take a look at the accessibility of your funds. 

Heritage Bank savings accounts

Depending on your savings goals, Heritage has a range of savings accounts for you that are simple to set-up, provide quick access to your funds and are seamless to manage. 

With the Online Saver, there are no set-up or account keeping fees, with easy access to your funds both online and over the phone. With a great interest rate from the very first dollar, this account is a great way to get started on your saving journey. Applying for an account can be done easily online too. 

If you’re looking for a savings account that gives you more back each month, then the Target Bonus account could be for you. The Target Bonus saver offers all of the benefits of no account keeping fees and simple online access, with a bonus interest rate for savers who need a little extra incentive to not touch their funds month-to-month. Applying for this account can be easily done online. 

Whatever your goals are to grow your savings, Heritage is here to help.  

Get a Bonus Intro Rate with our Online Saver Account*
0.55 % PA

Bonus Intro Rate available for new customers, on balances up to $100,000, for 4 months from day of account opening. Rate based on a S26_1 current variable rate, plus a 4 month S26_4 Bonus Intro Rate.

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