A competitive savings account will offer an interest rate of around 2% to 3% or more. A transaction account will usually have an interest rate between 0% and 1%. This means your savings will grow faster in a savings account. See how your money can grow with different interest rates.
Ubank - Save Account
Why it won: The Ubank Save Account currently offers a competitive 4.10% p.a. maximum interest rate and was the winner for Best Regular Saver for the 2022 Mozo Experts Choice Savings Awards.
Deposit Interest Rate in Australia averaged 5.62 percent from 1981 until 2022, reaching an all time high of 17.25 percent in October of 1989 and a record low of 0.05 percent in September of 2021. This page includes a chart with historical data for Deposit Interest Rate in Australia.
The best savings account interest rates are around 3%. At a brick-and-mortar bank, you'll often find savings rates closer to the national average, which is currently 0.30%.
Savings account interest rates of Jana Small Finance Bank are effective from 15th November, 2022. On savings bank deposits of more than Rs. 1 lakh and upto Rs. 50 Crores, the bank is now offering an interest rate of 7.00%.
Is 3% a high rate? In a word, yes. The national average savings rate as of October 2022 is 0.21% APY, according to the Federal Deposit Insurance Corp. That's a good deal higher than in the past — it was a paltry 0.06% in January 2022.
50/30/20 rule
Here's a final rule of thumb you can consider: at least 20% of your income should go towards savings. More is fine; less may mean saving longer.
If you're getting started in your 20s, save 10-15 percent of your pre-tax income. If you're getting started in your 30s, save 15-20 percent of your pre-tax income. If you're starting to save in your early 40s, save 25-35 percent of your pre-tax income—a pretty meaningful chunk of your income.
Historical Home Loan Variable Rates and Inflation Rates
In just 4 years, interest rates dropped from the high of 17% (January 1990) to the low of 8.75% (June 1994).
You're more than welcome to hit bigger targets, of course, but we think it certainly counts as high-achieving if you are anywhere in the range of 25 to 40 percent of income saved. As financial planners, planning for the future is a huge priority.
Easily access your money with an online savings account linked to your NAB transaction account. 3.75 % p.a. 1.10% p.a. base variable rate + 2.65% p.a.
Is $20,000 a Good Amount of Savings? Having $20,000 in a savings account is a good starting point if you want to create a sizable emergency fund. When the occasional rainy day comes along, you'll be financially prepared for it. Of course, $20,000 may only go so far if you find yourself in an extreme situation.
Putting away $1,500 a month is a good savings goal. At this rate, you'll reach millionaire status in less than 20 years. That's roughly 34 years sooner than those who save just $50 per month.
Personal finance site MagnifyMoney used data from the Federal Reserve and the Federal Deposit Insurance Corp. (FDIC) to break down the average and median balances by income. The top 1 percent of earners have a median balance of $1.13 million across various types of banking and retirement savings accounts.
Other high-yield options
Credit Karma is the newest entrant to the savings game, with a savings account with a 2.03% APY. Credit Karma does not charge any fees, and there's no minimum requirement to open. Like Betterment, it is partnering with banks that will hold savers' money.
By age 30, you should have saved close to $47,000, assuming you're earning a relatively average salary. This target number is based on the rule of thumb you should aim to have about one year's salary saved by the time you're entering your fourth decade.
Savings accounts are safe places to store cash you may need on short notice. You can open one at nearly any bank or credit union, often entirely online and with only a small or even no initial deposit. These accounts reliably pay the stated rate of interest and most have modest fees while some charge no fees.
Currently, money market funds pay between 0.85% and 1.05% in interest. With that, you can earn between $85 to $105 in interest on $10,000 each year.
Alternatives to traditional savings accounts include certificates of deposit (CDs), money market accounts, high-yield checking accounts, Treasury bonds, and online savings accounts. Different types of savings products and accounts offer different interest rates and terms.