Saving for a house deposit? The best interest rates on savings accounts add up

You might not be able to visit display homes in Clyde right now, but that doesn’t mean you can’t keep saving for your dream home.

There are many house and land packages in Cranbourne still available during the Coronavirus pandemic, but in order to buy your dream home, you first need to save for the deposit.

This can be a challenge at the best of times, but there are many ways to improve your savings. One of the quickest and easiest things you can do to help maximise your savings is to use a high-interest savings account.

Saving for a house deposit takes time, but choosing the right savings account with the best interest rates can help you reach your goal that much sooner.

Why you should get a high-interest savings account

A high-interest savings account is designed to help you save money, rather than spend money, by offering a competitive interest rate. The interest is compound interest, which is typically calculated daily and paid monthly into the account. While you might not be taking much notice of this interest every month, it adds up over time, so choosing an account that offers the highest interest rate will save you more money.

Many people are likely to already have something they consider to be their savings account, but they might not necessarily have chosen one with the best rates.

There are numerous benefits to having a high-interest savings account, such as offering a safe and fast way to save money.

Compare savings accounts

To make sure you get the best interest rate possible, you need to research and compare the rates that various saving accounts offer.

You want to look at the rate of interest as well as any additional fees and bonus rates, and compare which will be better for you. Make sure to look out for accounts that have introductory offers, as this can often mean that once the introductory period has passed, the interest rate you receive each month is actually less.

There are many savings accounts to choose from, with many offering competitive rates so it’s important to know what offers are available before making your decision, to ensure you get the best rates possible.

Find one that works for you

There are a few things to consider when looking at different savings accounts to ensure you choose the best one for you.

Some savings accounts require you to make a minimum deposit each month so if you’re a sporadic saver, that might not work for you. If you’re a regular saver, you might want to choose an account that rewards you for making regular deposits and not making any withdrawals.

Also, look at whether you can link the savings account to an existing bank account. If you can, it will make it easier to transfer your savings every month, otherwise you may have to open another account.

Don’t hesitate to switch

If you’ve had the same savings account for years there’s a high chance you haven’t assessed the interest rate you’re earning.

If you find a savings account with a better interest rate than what your current account offers, you should make the switch. While you may think it’s too much trouble to change to another savings account, it will be better for you in the long run if the new account provides higher interest rates.

Utilising a high-interest rate savings account is one of the easier ways you can get the most out of your savings and buy your dream home from the amazing house and land packages Cranbourne has available.

For more information on saving for a house deposit, or how you can view display homes in Cranbourne to find your forever home, contact the team at Bloom.

 

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