Fact checked
Are you looking to grow your savings? Compare a wide range of savings accounts with Savvy so you find the best deal in Australia and the highest interest rate to help grow your savings.
|
|||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|||||||||||||||||
Use invite code SAVVY10 for $10 upon successful sign-up. (Refer to offer T&Cs on Up website)More details |
|||||||||||||||||
Disclaimer: Savvy is not advising or recommending any particular product to you. We provide general information on products for the purposes of comparison, but your personal situation or goals are not considered here. Although we try to make our comparisons as thorough as possible, we do not have information on all products on the market on our site.
You should always consult a given offer's PDS or further documentation in the process of deciding on which loan to choose, as well as seeking independent, professional advice. If you decide to apply with one of the lenders listed above via our website, you will not be dealing with Savvy; any applications or enquiries will be conducted directly with the lender offering that product.
Everyone’s plans are different once they retire. Whether they include caravanning across the country or simply hitting the golf course a bit more, you’ll still need to make sure you have the funds to cover it.
A retirement savings account is a fuss-free place to save money ahead of your transition to retirement. You can put money away while you’re still working and access it the day you finish work. Learn how to compare accounts to find the best deals for your savings right here.
In the years before superannuation, you would open a retirement savings account as a way to squirrel money away for your golden years. These accounts are essentially a hybrid of a savings account and a super fund and give you a low-cost place to save with access to your money the day you retire or reach preservation age. They also have very similar rules and regulations as super funds.
These accounts become harder to find upon the introduction of the superannuation guarantee in 1992. Though they were squeezed out of the market in favour of high-yielding super funds, a handful of credit unions and major banks still offer retirement savings accounts.
Availability
Superannuation is the standard method of saving for retirement nowadays. The industry is worth trillions of dollars and, according to a 2019 ABS survey, the average Australian aged over 75 has more than $350,000 in their fund. By comparison, retirement savings accounts are now only offered by eight financial institutions around the country and some are only available to existing customers, rather than new ones.
Performance
Investing in a superannuation fund can get you up to a 20% return on your money every year. By comparison, your return on a retirement savings account will be calculated on a much lower interest rate. You can use Savvy’s savings goal calculator to plot how long it will take to reach your savings target at different interest rates.
Contributions
Employee and personal contributions are allowed across both superannuation and retirement savings accounts. A spouse is also able to deposit money into both types of accounts. Using Savvy’s calculator, you can work out how much to regularly deposit to achieve your savings goal.
Accessibility
Super funds and savings accounts have the same withdrawal rules. You'll only be able to withdraw funds if you’re retired or have reached preservation age, which is between 55 and 60 depending on when you were born. In both cases, you’ll only be able to apply for early release on medical or compassionate grounds. These can include suffering financial hardship, poor health, a terminal medical condition or if you’re temporarily or permanently incapacitated.
Protection
The key difference between these two retirement options is the protection you get over your money. Your retirement savings accounts won’t be knocked around by the performance of the market, meaning the value of your savings won’t drop no matter the economic climate. The federal government’s Financial Claims Scheme adds another layer of protection by protecting balances up to $250,000 if your financial institution collapses.
Fees
These costs will vary depending on who you choose to invest with. Super funds come with fees for such functions as administration, management and advice and are capped at 3% of your balance. By comparison, retirement funds generally have fewer fees. Some smaller institutions have no fees for opening an account, but larger banks may still levy an annual admin fee of up to $35.
Tax advantages
You’ll largely get the same tax benefits under both saving methods as they come under the same government superannuation guidelines. However, you’ll be able to earn interest on your full balance, not just your tax-free portion, with a retirement savings account.
A pensioner savings account is a common method of banking for those who’ve hit retirement age. These flexible accounts work similarly to standard savings accounts, except you can have unlimited withdrawals without it impacting your interest rate. Calculated daily, your interest is tiered based on your account balance. For example, if you have a balance under $50,000, a bank may offer you a rate of 0.05% but if your balance is more than $250,000 you could have a higher rate of 0.25%. You can calculate how much you can earn using Savvy’s savings calculator.
Generally, you have to be over 55 and earning a government pension from Centrelink or the Department of Veteran’s Affairs to qualify. If you don't receive a government pension and are over 65 years of age, though, you could opt to open a standard savings account or a free everyday account tailored to self-funded retirees. You can compare all of your options in one place with Savvy today before opening your account to ensure you set yourself up for the best return.
You won't have to pay a cent to compare savings accounts with us, so you can do so at any time you like.
There's no need for you to worry about visiting any banks, as you can compare accounts and open one online.
We're partnered with trusted financial institutions around Australia to bring more quality to your comparison.
Market shocks are unlikely to affect the health of your retirement fund, with your balance determined by interest earned not share prices. That means your bank balance will continue to rise and remain healthy, even if the stock market is on the slide.
The federal government backs your balance, giving you peace of mind in the rare event your bank collapses. This capital guarantee is capped at $250,000.
Low fees
Unlike a super fund which can take up to 3% of your balance in fees every year, these accounts often come with fewer additional costs depending on where you choose to open an account.
Low risk, low return
By opting for a low-risk option, you’ll generate less of a return on your money by opening a retirement savings account compared to a superannuation fund.
Hard to find
Retirement funds are rare these days, with as few as eight institutions still offering them to customers. Some institutions will also only offer these accounts to existing customers, limiting your access even further.
Fewer benefits
You miss out on the added benefits and flexibility of being a super fund member, such as low-cost financial advice.
Use our savings calculator to help you calculate how much you could save over a set timeframe based on different deposit sizes and frequencies.
Your savings can put in work for you. Crunch the numbers to see how much interest you could earn on top of your interest by compounding daily, monthly and annually.
It's crucial to have a clear idea of your monthly household budget to see where your money is going and where it could potentially be better spent.
If you're applying for a loan or need to know what your salary is for your tax return, you can use our annualisation calculator to work out what you'll earn this financial year.
Setting savings goals is important. With this tool, you can work out how much you'll need to deposit to reach your financial aims over a set timeframe.
Just as important as knowing how much to deposit is working out how long it'll take to reach your goals. This savings goal calculator can help you do just that.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
