Everyone saves money differently. From setting aside a portion of your pay, to choosing the right account, here are some tips on how to be a better saver and reach your financial goals.
Have a savings goal and budget
To work out the amount you’ll need, be realistic about what you can afford to save each week, fortnight or month.
Earn your bonus interest
Good savings habits can reward you with bonus interest on some accounts. Be disciplined and it will pay off in the long run by helping you save a little faster.
How it works
With accounts like NAB Reward Saver, you get bonus interest each month if you make no withdrawals and at least one deposit each month.
Then, if you follow those simple rules, you’ll receive your regular interest plus your bonus interest at the end of the month.
In your first month, let’s say you’ve saved $4,000 and your interest rate is 2.50% per annum. This means you’ll earn approximately $8 in interest for this month.
Your bonus interest varies from different accounts—some need a minimum monthly deposit, some no withdrawals, and some are clause-free (check the account details before you open the account).
For this example, we’ll assume there are no clauses and your bonus interest is 0.90% per annum. So for month one your bonus interest will be $3.
Every month, you’ll see your interest and bonus interest (if you stick to the conditions) increase along with your savings.
Think of your interest as extra money you might not otherwise have had. Eleven dollars might not sound like much, but at the end of 12 months you may have earned an extra $130.
Set up a regular payment
If you get your phone or power bill direct debited from your account, why not apply the same concept to your savings account?
Simply set up a regular automatic payment to go into your savings account every day.
It’s best to make your payment early in the month, because transfers could take a few days to reach your account – and you don’t want to risk losing your bonus interest.
Learn about setting up a regular deposit.
Compare our savings accounts
Just like with insurance and mobile phone plans, it’s best to compare which savings accounts are right for you. To get started, think about your needs.
Perhaps an ‘at call’ account will work best. This means you can access your money any time without fees or economic cost – but you might lose bonus interest for any withdrawals you make.
On the other hand, a longer-term plan might be the way to go – such as a term deposit. This means you put your money away for a longer term (months or years) and receive a fixed interest rate.
If you’re a student or just starting out, to help decide on your next steps head to our youth banking page.
The interest rate is usually based on the amount and length of time you put the money away for. This is fine if you don’t need access to the money during the fixed term.
If you need to withdraw the money before the fixed term is up, you may be charged economic costs.
Track your savings goal
Our final secret? Keep track of your savings goal.
This handy tool enables you to add a savings goal to any of your savings or transaction accounts and can help you easily track your progress against your goal.
Apply online for one of our savings accounts to help you reach your goals sooner.
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The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, NAB recommends that you consider whether it is appropriate for your circumstances. NAB recommends that you seek independent legal, financial and taxation advice before acting on any information in this article.