How does a Savings Account work?

Are you trying to save for a vehicle? Perhaps you’re saving for the wedding of your dreams? Hoping to travel the world someday? Whatever it is you’re saving for, a high interest savings account is the best way for kiwis just like you to make the most of the money you have in your account and reach your savings goals quicker.

From a Jimmy J Junior Saver account to a Goal Saver account, a savings account is usually the first step in every New Zealander’s financial life, and they all operate on largely the same principle. You open a savings account with a bank or a credit union, deposit your money, and then sit back as your funds are kept safe and earn a small - or large - amount of interest each month.

With money saved away, you can ensure you’re always ready for those big purchases, rainy days, or unexpected expenses that life can throw at you so you can avoid costly debts or loans.

How much interest can I expect to earn with a savings account?

The amount of interest you can earn with a savings account will vary depending on the financial institution, the account type, and the amount you’re looking to save. NZCU Steelsands Goal saver accounts for amounts over $5,000 earns our best rate of interest for at call accounts.  See interest rates

Is a term deposit different from a savings account?

While a high interest savings account is still likely to earn less than a term deposit investment, a savings account also gives you much easier access to your funds when and where you want them, whereas a funds in a Term Deposit are locked in for the Term of the Deposit.

Is there anything else I should know?

A savings account isn’t just an easy way to keep your money safe and earning high interest, it's also a great way to incentivise the saving process! When your money is kept in a savings account, you’re far less likely to spend it on impulse purchases which makes it easier to reach your financial goals.

From here, you can use the money you’ve saved for just about anything, whether it’s to consolidate your debts, improve the family home, pay off outstanding credit card debts or live your life debt free.

Once you’ve decided which savings account is best for you? The sign-up process is as easy as:

  • Applying online for a savings account.
  • The bank or credit union then pays you interest on the money that you deposit and leave in the account.
  • Your money now does all the work for you.

Do you want to save your money and earn high interest as you do so? Apply online for a high interest savings account today.