These bank savings accounts not only offer a higher interest rate than the base rate but also allow us to enjoy a minimalist banking lifestyle (i.e., not worry about the different conditions to maximise the bonus interest rate). It’s perfect for working adults, as we need to credit our salary into a bank account anyway.
On the other hand, high-interest savings accounts tend to require us to go through many hoops, such as credit card spending, buying investments or insurance products, or fulfilling other conditions, to qualify for the higher bonus interest.Īlternatively, we could take advantage of bank savings accounts that offer a higher bonus interest rate for simply crediting our salary each month. However, these plain vanilla bank savings accounts tend to offer a low base interest rate of 0.05% per annum (p.a.), which is hardly sufficient to maintain the purchasing power of our savings in the long run.
Typically, for our first bank savings account, we tend to select those that have minimal requirements, such as a minimum deposit, minimum balance fees, or other conditions to earn interest on the savings.
