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We had a question recently about savings accounts. Nothing beats a reader question, so I decided to answer it as soon as I could. With a little research and some good old-fashioned been there done that, I thought I’d share what I’ve learnt over the years. So here is a post about great bank accounts for students who want to save!
There has been plenty of talk and some changes lately when it comes to the banking industry, in particular, the fees they charge. One of the biggest changes you may have noticed was when some banks stopped charging ATM fees. I believe this started when the Commonwealth Bank (CBA) came out in the media to let us know they had stopped charging fees on their ATMs.
This was because they have had a lot of bad press lately and wanted to look good to their customers and try to rebuild their brand. The next day National Australia Bank (NAB) from memory dropped their ATM fees as well. Clearly, they had been considering it or running the numbers previously as that sort of decision wouldn’t have happened overnight.
But not all ATMs are equal the same as not all bank accounts are equal. Plenty of ATMs in pubs and clubs, for example, are independently owned, so they aren’t removing their $3.50 PLUS fees to withdraw your own money anytime soon but the landscape is changing.
So what about bank accounts and savings accounts. There is PLENTY out there these days that are fee-free, and most banks have a savings account that offers some sort of bonus interest (normally only applies if you deposit money and make low or no withdrawals for the month) so make sure you look closely. We did some running around and found some options for you. To be clear, Leave Home Blog is not affiliated with any of these accounts. you should determine what is best for you and your financial position and goals. Use your head, team.
These guys have been offering an excellent transaction and savings account for years now and still sit at the top of the bunch for a number of people I know.
An online savings account which pays 2.8% interest (up to $100,000) as long as you have an orange every day (mentioned above) and do the $1,000 and 5 transactions.
These guys are known for their super and insurance, but they also have a bank. They have been trying to improve the bank over the last few years and have used their financial knowledge to offer a single account with three separate splits. What does that mean? This account will take people who used to save in glass jars at home into the 21st century. It has three accounts called B3tter Pay, B3tter Save, B3tter Spend.
The idea is you have an account you put your bills money, one for you to save for something special and an account where you put your fun money, so you don’t overspend on a night out. Been there. More info here for those looking into this one.
These guys want $2000 a month into the B3tter Pay account, but you can get up to 3% (up to $100,000) on your B3tter Save account.
You might have seen the ads for this one. They offer up to nine sub-accounts. You could choose to have an account to save for a car, save for holidays, one for Christmas or birthday present savings, or car registration. ANYTHING.
Why pay your bills fortnightly for example when you get no extra credit for it when you could have a “power bill account” and have money earning interest in your bank instead of sitting in credit on your power bill and when the bill turns up pay before the due date and still get that discount. Being a grown-up made easy.
This one is fee free for the first year, so worth having a look and seeing if this many sub-accounts will work for you. It won’t be for everyone. Having money all over the place may be too complicated. But for other users, this will be a dream come true.
If you are looking for a place to save money and you’re happy with your current bank to ask them about their “online saving” accounts. They all seem to have something. They all seem to be paying better interest than taking out a term deposit which is paying you less interest in most cases but restrict flexibility. Don’t be afraid to head into your local branch and ask to talk to someone. Be very clear on what they’re offering before you agree to sign up to anything. You can always, ALWAYS say no. Don’t let anyone push you into anything. Life advice; you’re welcome.
I know, I know. It feels like a million years away. BUT, for some of you, you need to keep this on your horizon. Especially those who are starting to establish themselves in their career. If you are saving for a first home, the government have made some changes recently which may be of interest. Keep an eye out for a post coming soon about soon about using your superannuation to save for your first home.
Phew. THAT was a lot of info. Take your time, go through it. Look into these banks and others to see what is going to work for you. Finding a great bank when you are a student is difficult and we want to help, leave your questions below and we’ll do what we can.
Melissa is the Leave Home Blog Boss. She is living the high life in her hometown, didn’t finish her marketing degree & drinks too much on a Thursday night. Blogging since 2009, Melissa decided to put everything she knows into making The Leave Home Blog a light & easy how-to guide for being a grown up.