With the Australian stock market taking investors for a ride and the property market predicted to fall by 20 per cent, Australians might be wondering where the safest place is to put their money.
And though the official interest rate is at an historic low of 0.25 per cent, there are some savings accounts that still have competitive interest rates.
Finder analysis reveals that the savings account with the most competitive rate on the market right now is AMP’s Saver Account, which will give new account members an introductory rate of 2.65 per cent for six months before it reverts to 1.05 per cent per annum.
Rabobank’s High Interest Savings Account is runner up, delivering customers a rate of 2.25 per cent per annum for four months before dropping down to 0.80 per cent.
In third place is MyState Bank Bonus Saver Account, as well as 86 400’s Save Account and BOQ’s Fast Track Saver at 2 per cent, according to Canstar analysis.
But bear in mind that all of these savings interest rates are conditional, meaning you’ll need to meet conditions such as depositing a certain amount of money (usually $1,000 or more) a month, and permitting only a limited number of withdrawals.
“Savers may be finding themselves on the merry-go-round of moving their money every few months to qualify for promotional rates, in order to get a reasonable return,” said Canstar finance expert Steve Mickenbecker.
“An alternative is bonus savings accounts, some of which can have achievable bonus conditions to meet, while others can be unsuited to a saver’s circumstances."
So if you’re not interested in moving your money around every few months but looking for a decent interest rate on a savings account, Canstar has done analysis on savings accounts that don’t come with any promo rates or conditions and found that neobank Volt bank has a Save Account of 1.65 per cent as its base interest rate.
Runners-up are Macquarie Bank’s Savings Account at 1.35 per cent, followed by MOVE’s Express Saver and Bank of Sydney’s BOS Saver at 1.25 per cent.
Make your money work with Yahoo Finance’s daily newsletter. Sign up here and stay on top of the latest money, news and tech news.