High Interest Savings Account

In the last few months Australian interest rates have been rising. The Reserve Bank of Australia has again increased the cash rate by another 0.25% taking it to 3.75%. While we have no doubt the fact that Reserve Bank of Australia hasn’t increased rates three months in a row since the 1980s, we should als consider that 3.75% is still very low for the cash rate in the last 20 years. Our Australian interest rates are still in historical low at the moment

Bank mortgage rates also remain 20 years low. The average banks’s standard rate increases by 0.25%, this could take the rate to around 6.50%. From what we see in the recent months, the rate was lower than this was in a short period of them just after the 11th Sept Word Trade Center attacks.

Although Reserver Bank of Australia did not give out any hints about Interest Rate Rise for next month but in the recent economic recovery , we should predict that the rate will continue to increase to surpress inflation.

We should not forget that rate hikes are likely if the economy continues to recover as expected. The Australian economy is recovering expectionally well in the recent event. In terms of the over all economy performance, the Reserve Bank may have seen no point for interest rates to remain at historically low levels given the economic growth continues.

Overview:

• More Interest Rate Hikes are likely in the year ahead as the Reserve Bank of Australia looks to move Interest rates towards normal levels. The normal level is now estimated to be around 5.00%.

• RBA will likely control the inflation level and tigthen its Interest Rate policy in 2010.

• Rising interest rates could have negative impact to low and medium income families. Most of the families will take a longer than expected recovery process.

• Interest Rate rise will push Australian dollar to new high against USD and other other currencies.
Time to review your money saving strategy. Open a high interest savings account today and earn more money from your bank interest.

Best online savings account

I know online banking sounds pretty weird to most people who prefer banking the old fashioned way. If you are one of those; well, you have to understand that the way to go is to open up the best online savings account. Why? Because regular banks do not offer higher interest rates than online banks – that’s why!

Benefits of online savings account:

There are several benefits you can achieve if you consider banking with one of the best online savings accounts0 on the internet. The many benefits of online savings account include:

1) High interest Rates

This is my favourite! If you open the best online savings account that you’ve found, you are definitely guaranteed higher interest. Did I hear someone say “whatchu talking about?” You see, online banks are not stuck with the expenses of regular brick and mortar banks, this means that they can afford to pay higher interest rates.

2) No minimum balance

Unlike regular banks, you do not need to maintain a minimum account balance with an online bank account. Which means you can put as much money or as little as you desire into your online savings account – the choice is yours.

3) Offers you cannot refuse

If or when you sign up for an online savings account, you will receive periodical e-mails informing you about offers for higher interest rates (for a limited time). Online banks hold these “sales” all the time, and these sales actually help you make more money – can you beat that?

4) Saving made easy

Everybody knows that it is easier to dip your hands into your savings when you know that you have money in your bank account. If you are very keen on saving your money, an online savings account is the best choice because it will take two to three business days to transfer your funds from an online account to a regular bank account. Who wants to go through all the waiting to transfer a couple of bucks, huh?

5) No additional fees

You can set up a savings account without paying the fees usually required in brick and mortar banks.

6) Reward with incentives

When you open an online savings account you are sure to get great incentives. A brick and mortar bank might offer you some fancy wallet, key chain etc. but an online bank offers cash incentives just for opening an account with them and for referring people. How great is that?

7) Easy to use

Online bank accounts are the by far very easy to use and it helps you to stay on top of things because most online banks send you e-mails every step of the way.

How to choose the best online savings account?

• Interest rates

Before you open an online savings account you must put into consideration one of the most important factors – that is, the bank’s interest rate. Online savings rates are known to fluctuate (dramatically) over time. However, some banks are always on top.

• Check for Credit Ratings

I will never consider putting my money in an online savings account without ensuring that the bank is secure enough. I simply check out their safety ratings with Cannex Credit Rating, if they rating is AA+ I sure will be more than happy to save my money with them.

• Check for fees and charges It is better to read your product terms and conditions than ignore the line fine print. You need to you know your right and make sure you are happy with the services that they provide. Some banks may charge you slight more than the other banks.

Selecting the best online savings account is clearly not brain surgery; you need to understand that online banking is safe, easy and very accessible.