Improve your cash returns

Whether you’re saving for short or long term goals, it’s smart to keep some of your investment in a cash account. This quick guide will help you work out which account will best suit your needs.

The higher the interest rate, the faster your savings will grow thanks to the power of compound interest. So look for a higher introductory rates with a solid ongoing rate – it will turbocharge your savings straight away so make the most of it.

Weigh up your savings goals

If you’re saving for a specific goal in the near future (such as school fees), you’ll want to be able to make regular deposits and have flexible access to your funds with no penalties. That’s where an online savings account savings account may help. But if you want a guaranteed return over a fixed period of time to lock away funds for a long term goal - like a home deposit, for example – a term deposit might help you get there sooner.

Keep your savings out of reach

While it’s obviously helpful to see all your accounts in one online dashboard, it might also be all too easy to dip into your investments or transfer money back to your everyday account. If you don't want to risk temptation, a term deposit may be a better option.

Diversify your cash accounts

If you want to have some cash available quickly (but still earning interest) and some locked away for a fixed term at a set rate, why not split your cash between an online savings account and a term deposit? By opening both you’ll have an online savings account where your cash will be accessible at any time, and a term deposit – which will likely earn higher interest and when the term rolls over you can decide whether to reinvest or transfer it back to the savings account.

The higher the interest rate, the faster your savings will grow thanks to the power of compound interest.

Understand the fine print

Some online savings account offers could come with strict conditions. These might include penalties for exceeding or not meeting account balance requirements, or no interest payable if you make a withdrawal. Some might also require a linked deposit account to maximise your interest rate.

Weigh up all those features before you decide which online savings account is right for your needs.

Important Information:

Any advice is general advice only. It was prepared without taking into account your objectives, financial situation, or needs. You should consider if this advice is appropriate for your situation. We recommend you read the Product Disclosure Statement (PDS) or Terms and Conditions, available online or via a Citibank branch, in addition to seeking independent legal, financial and taxation advice on your personal circumstances before acting on the information contained in this material.

This material is for general information only. All opinions are subject to change without notice. This material is taken from sources which are believed to be accurate, however Citibank accepts no liability of any kind to any person who relies on the information in it.

Investments are not deposits or other obligations of, guaranteed, or insured by Citibank N.A., Citigroup Inc., or any of their affiliates or subsidiaries, or by any local government or insurance agency, and are subject to investment risks, including the possible loss of the principal amount invested. Investments are subject to risk, including loss of income and principal. Past performance is not an indicator of future performance. Due to exchange rate fluctuations, you risk losing capital if you invest in foreign currency. Some products are not available to US persons and may not be available in all jurisdictions.