Opening a savings account
Important things to note!
I've personally used a Bank of Queensland 'myBOQ' account as an example, but there are plenty of other options for opening and managing savings accounts. Remember, this isn't a recommendation, so it's best to do your own research. Be cautious because many comparison sites are paid advertisements and may not display all available products and services. You can find some helpful tips on what to look for in a savings account on the Australian Government website, MoneySmart.
Why open a savings account.
Higher Returns: High Interest Savings Accounts sometimes referred to as HISA, typically offer better interest rates compared to traditional savings accounts. This means your money can grow faster over time.
Easy Access: Despite offering higher interest rates, most high-interest savings accounts still allow you to access your funds when needed. This provides a balance between earning interest and having liquidity.
Safety: Like other bank accounts, high-interest savings accounts are usually insured by government guarantees, providing a level of protection for your deposits.
Financial Goals: If you're saving for a specific goal, such as an emergency fund, a holiday, or a deposit on a house, a high-interest savings account can help you reach your goal faster due to the compounded interest.
Minimal Risk: Unlike investing in shares, property or crypto, high-interest savings accounts carry minimal risk.
Opening a savings account.
Note: Government-issued identification will be required when opening a bank account.
Go to the Bank of Queensland website and open a 'Simple Saver' account, which currently offers 4.85%* interest without needing to meet monthly criteria. Alternatively, there are out savings accounts that offer higher interest rates with eligibility criteria
Download the myBOQ app and open the 'Simple Saver' account. This will also give you an 'Everyday Account' with a Visa Debit Card.
Rename your 'Simple Saver' account to 'EMERGENCY SAVINGS' within the app. Remember these are Money Moats.
In the app, go to 'Account' and select 'Sign up for a new account', then choose 'Saver account' and 'BOQ Simple Saver' to create your next high-interest savings account. Rename this one 'BOSS SAVINGS'.
Repeat the account setup process to create a 'LIFESTYLE SAVINGS' account, or set up more if needed.
After completing these steps, your accounts should look like this:
Everyday Account (linked to a debit card)
EMERGENCY SAVINGS
BOSS SAVINGS
LIFESTYLE SAVINGS
* As of April 2024