Savings accounts and the 'financial crisis' (1 Viewer)

[flyingKangaroo]

Hey guys,

I'm looking to open a high interest savings account that I can put most of my wages into. I'm with Commonwealth, so I was looking at the Netbank Saver which has 5% interest and no fees. However, the ING Direct Savings Maximiser has 5.5% with no fees and can be linked to my Comm account.

While ING has more interest, I'm wondering what 'risks' would be associated with going for an online savings plan in the current financial situation?

Anyone have the Netbank Saver? Happy with it? Any advice would be greatly appreciated...

 

[GreenLeaf]

The only risk is the interest is not fixed and will most likely decline rapidly towards the next few months. What's best for your money depends on how much you have saved up so far.

Simply put, if you have less than $10,000 it won't be worth the trouble moving your money to a higher paying interest account since (assuming your bank pays interest monthly) in two months time you will only gain/or loose a few dollars, before the interest for all banks go even further.

So really you should stick to your current bank to accumulate as much interest as possible, and then switch to a term deposit if feasible.

 

[electrolysis]

just out of interest, arabbank's online savings account offers 7.2% p.a interest, im currently with them, theyre good service
website: www.arabbank.com.au

 

[babikakez]

Hey guys,

I'm looking to open a high interest savings account that I can put most of my wages into. I'm with Commonwealth, so I was looking at the Netbank Saver which has 5% interest and no fees. However, the ING Direct Savings Maximiser has 5.5% with no fees and can be linked to my Comm account.

While ING has more interest, I'm wondering what 'risks' would be associated with going for an online savings plan in the current financial situation?

Anyone have the Netbank Saver? Happy with it? Any advice would be greatly appreciated...

I have the Netbank Saver and am happy with it. I don't know much about ING though, sorry, but I'd recommend staying with the one institution.