Saving money is easier said than done, but one of the best ways to do so is to avail yourself of a bonus saver account. Compared to the traditional savings account, bonus saver accounts provide an additional bonus interest rate on top of the base rate, which is appealing, most especially for people who have consistent saving behavior. If you want to know more about these savings options to achieve certain financial goals, this article highlights how to use them efficiently to yield great results.
What are bonus saver accounts and how do they work?
Bonus saver accounts are a type of savings account where account holders can earn more by meeting certain criteria, like making fewer withdrawals or maintaining a certain balance. Like all savings accounts, it also has a standard base rate and a bonus rate, which is the said extra layer of interest account holders can earn if they meet certain criteria. Below are the usual conditions needed for account holders to incentivize their savings:
Make regular deposits. On top of increasing your savings, making consistent deposits to your bonus savers account monthly will help you gain more bonus interest. Illawarra CU bonus saver accounts and most banks require a minimum deposit amount so you can start earning more.
Maintain a minimum account balance. To keep their accounts active, account holders must maintain their minimum account balance throughout a certain period, but usually for the month.
Make fewer withdrawals. As much as possible, account holders should refrain from withdrawing from their bonus saver accounts to maintain, if not increase, the bonus rate needed to incentivize their savings.
Bonus saver accounts are a great introduction for people who are starting to explore financial planning and money management. What’s more, if you manage to consistently maintain your balance for the month, the account will earn a combined interest that will yield a higher overall return to your savings.
How do I maximize my bonus saver account?
Continuously making deposits will help you earn more in your bonus savers account, but if you want to maximize its high-interest savings, here are a few helpful tips:
Set realistic saving goals. Before everything else, you must first create realistic saving goals and align them with the requirements of your bonus saver account. You don’t necessarily have to start big; you can begin with doable goals like saving for a new gadget or a short vacation. From there, you can set a monthly deposit amount that will help you reach your goal in a desirable time.
Automate your savings. In case you forget to deposit in your bonus saver account, you can just set up automatic transfers from your payroll or checking account so that your deposits are consistent. This also enables you to stay on track with your goals and helps you achieve them on time.
Look around for offers with the best rates. As mentioned earlier, many banks offer bonus saver accounts, but they vary when it comes to several factors like base and interest rates, as well as requirements. Look for accounts that offer competitive bonus rates that have favorable terms and minimal fees.
Thoroughly read the terms and conditions. Once you decide to open your bonus savers account and already have a bank in mind, make a habit of reviewing the terms and conditions of the bank. While you’re at it, keep an eye out for the bonus rate: check how high the rate is and what the requirements are for you to start earning from it. Along with that, there are usually minimum deposit amount and balance requirements needed to maintain your account, so make sure to check these two factors as well.
When it comes to withdrawal, see if you’re allowed to withdraw from your savings account, though usually, banks would suggest otherwise since it defeats the purpose. Still, there may be unlikely instances that would require you to make a withdrawal, but before that, check if there are any restrictions you should abide by without losing your bonus interest.
Consider linking other accounts. Many banks allow your bonus saver account to link your savings account to your checking account, enabling you to automate your savings and make transferring funds easier.
Track your progress. Even if you automate your savings, it’s best to monitor your balance regularly so you can track your progress and make adjustments when needed. Tracking your progress also motivates you to save more and meet the requirements needed to earn the bonus interest.
Creating a bonus saver account is a great way to start your money management journey. By understanding the factors and requirements needed to earn the bonus interest rate, you can start planning ways to maximize your saving potential and reach your financial goal in a shorter time.