Financial Philosophies, Making Money

Which savings account is best?

Savings accounts don’t get much love these days and given the low interest rates it’s not hard to see why.

A quick Google search will tell you that savings accounts barely pay enough interest to cover inflation, so is it still worth putting money into a savings account? 🧐

Good question!

Well if you know you need to use money in the short term you want to keep it somewhere readily accessible. For example, if you need to pay your rent next week, you probably don’t want to risk it disappearing in a stock market dip. If you are going on a holiday in a few months, you probably don’t want to risk it disappearing, well you get the picture.

So which savings account should your money go in to?

Are you ready for something mind blowing?

It doesn’t really matter (as long as your savings account is guaranteed by the government)!

🤯

Just think about it, $1,000 at 3% p.a. will earn you $30 after one year (assuming annual compounding), whereas 2% p.a. earns you $20.

If you had $100,000 then 1. your interest rate will matter but 2. why would you have that much money sitting in your savings account?!

Life is short, spend your time on things that matter. 

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