How Investing In A New Bank Account Can Make You More Money

Warren Buffet (one of the wealthiest old white men in the world) once said:

“If you don’t find a way to make money while you sleep, you will work until you die.”

Photo by Andrea Piacquadio on Pexels.com

There are tons of different ways for you to be making money while you sleep. For now, though, let’s start by talking about one of the easiest ways you can start to make this money right now: interest. If you can’t remember what the hell interest is from the time that you crunched the numbers in Year 10 maths class, then let me briefly explain to you how it works.

Photo by George Becker on Pexels.com

If a bank account has an interest rate of 1% per annum, and you invest $10,000 into that bank account, that bank will pay you $100 every year. The bank will pay you that money monthly, so that is going to be roughly $8 every month.

If, on the other hand, a bank account has an interest rate of 2% per annum, and you invest $10,000 into that bank account,  the bank will pay you $200 every year. That is going to be roughly $16 being paid to you every month. This is obviously an extremely simplified version of how simple interest works, but I’m sure you get the gist.

It sounds like common sense to put your money into the account with the highest interest rate, right? Well you’d be surprised at how many of us don’t actually do this. In fact, a lot of us don’t even know how much interest we are earning each month, and this needs to change right bloody now. When it comes to choosing the right bank account for your savings, you need to find a bank account that offers you the highest interest rate possible so that you can earn the most money possible.

I’m not going to ask you to do the research, don’t worry. I’ve already done it for you. Just answer some of the questions below to figure out where you need to be putting your savings. Oh, and just in case you’re wondering, I am in no way affiliated with any of these banks.

QUICK NOTE: Be sure to read all of the requirements for each different type of bank account. If you can’t fulfill those requirements then you won’t get that high interest rate and that account is not the right choice for you.

SPACE

1. ARE YOU UNDER 25 AND HAVE LESS THAN $10,000 IN SAVINGS?

YES

The Bank of Queensland Fast Track Starter account has an interest rate of 3% p.a. for 14-24 year olds with less than $10,000 in savings.

Requirements: You must deposit at least $200 per month into a linked transaction account.

NO

Move on to Question 2.

2. CAN YOU DEPOSIT AT LEAST $1000 EVERY MONTH INTO YOUR SAVINGS ACCOUNT?

YES

The Bank of Queensland Fast Track Saver account has an interest rate of 2% p.a. on balances up to 250k.

Requirements: You must deposit at least $1000 a month into a linked BOQ transaction account.

NO

Move on to Question 3.

3. ARE YOU COMFORTABLE USING AN ONLINE BANK?

YES

The UP Life Savers account has an interest rate of 2% p.a. on balances up to 50k.

Requirements: You must make 5 purchases from your UP everyday account every month.

NO

Check out the other notable contenders below.

SPACE

OTHER NOTABLE CONTENDERS:

ING SAVINGS MAXIMISER

This ING account has an interest rate of 1.85% p.a. for balances up to 100k.

Requirements: You must deposit at least $1000 a month into the account AND you must make 5 purchases from your ING account every month.

USAVER + ULTRA

This U Bank account has an interest rate of 1.85% p.a. for balances up to 200k.

Requirements: You must deposit at least $200 a month into a linked UBank Ultra transaction account.

ME BANK ONLINE SAVER

This ME bank account has an interest rate of 1.8% p.a. for balances up to 250k

Requirements: You must make at least 4 Tap and Go purchases from a linked everyday transaction account every month.

SPACE

NOT SO NOTABLE CONTENDERS:

To put it simply, the interest rates at the big four banks suck. If your savings are in any of these accounts, it’s probably time to reconsider.

ANZ PROGRESS SAVER

This account has an interest rate of 1.25% p.a.


Requirements: You must deposit at least $10 into the account every month and you cannot make any withdrawals.

CBA GOAL SAVER

This account has an interest rate of 0.65% p.a.for balances up to 50k.

Requirements: You must deposit at least $200 into the account every month and you cannot make any withdrawals.

NAB REWARD SAVER

This account has an interest rate of 1.25% p.a.

Requirements: You must make at least one monthly deposit and you cannot make any withdrawals.

WESTPAC LIFE

This account has an interest rate of 1.3% p.a.

Requirements: You must make at least one monthly deposit, your account balance must always be greater than $0 and you must ensure that your account balance is higher at the end of the month than the beginning.

SPACE

If your current bank account isn’t earning you as much money as possible, then you need to change your account ASAP. Apply online or call your bank of choice now to get yourself a new high-interest savings account. It will take less than half an hour to set up and the extra earnings will be well worth it.

SPACE

The Stingy Bitch

Based in Sydney, Australia.
Created in 2020.

Disclaimer:
This site and all of it’s contents are provided for entertainment purposes only and do not constitute personal financial advice. All products that are mentioned are general product advice only, not personal product advice. Not all options are presented and my opinions are subject to change. All content and posts have been prepared as a general summary only and is not intended to be financial advice with respect to any particular matter. This post should not be relied on with respect to any particular matter. If you have questions about any aspect of the content or this site or otherwise require personal financial advice, you ought to seek financial advice. The author disclaims liability to any person who relies on this post.

Do you have questions, comments or feedback for me? I’d love for you to get in touch!

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@thestingybitchblog

Published by thestingybitch

A Twenty-Somethings Guide to Saving Money Whilst Still Living Your Best Life

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