Amid all the talk of official interest rates potentially going down, something slowly, silently has been happening to savings rates: they’ve become not only higher, but hurdle-free.
The trend of the past decade has been savings accounts that require you to dance naked under a full moon and/or give up your firstborn to qualify for the full possible dose of interest.
Savings accounts no longer require you to give up your firstborn to qualify for a high-interest rate.Credit: Dominic Lorrimer
Some accounts have conditions so onerous – on which you are judged before they pay interest each month – as to be impossible.
Real conditions, rather than the above, made-up ones, often include depositing a particular amount of money each month, making five purchases, making no withdrawals, or even giving 30-plus days’ notice before you can access your own money.
Growing your account balance is one of the most common, overarching ones. It’s all because these hard-to-hit criteria mean institutions can advertise a high rate but frequently get away with paying less.
It’s transparent – I’m not saying otherwise. But the product design is all about getting the product into top-10 tables while spruiking a probably unlikely interest rate.
You no longer need to put up with: interest rates that time out; caps on what you can save; or pesky full-payment conditions.
But here’s the thing: guaranteed high rates now smoke the conditional ones. Or almost.
Accounts on which there is only a base rate, and not a base and then bonus component, have crept up those top-10 tables – and you don’t have to do anything to be paid all the promised interest.
Savers, rejoice: You can now get high rates without the hurdles
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22.03.2024
Amid all the talk of official interest rates potentially going down, something slowly, silently has been happening to savings rates: they’ve become not only higher, but hurdle-free.
The trend of the past decade has been savings accounts that require you to dance naked under a full moon and/or give up your firstborn to qualify for the full possible dose of interest.
Savings accounts no longer require you to give........
© The Sydney Morning Herald
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