National Bank tops the field in best value savings accounts

media release

National Bank tops the field in best value savings accounts

CANSTAR releases deposits and saving star ratings today

With banks borrowing less money from overseas to finance their lending activity, they are turning to the local market to make up the shortfall.

In the wake of continued uncertainty surrounding equity markets and global funding sources, banks will continue to focus their attention on attracting domestic deposits, says CANSTAR National Manager Derek Bonnar.

“This is good news for savers with plenty of options out there for those looking to build a nest egg. We’ve evaluated 86 deposit accounts in the market as part of our Deposit Account Star Ratings. The National Bank topped the pack as the overall winner of the Best Value Savings Award for 2012.

“National Bank is a consistent performer, scoring either four or five stars in the categories rated. They have something for every type of saver; the motivated and those that need a little encouragement.”

Other National Bank savings highlights:

• Online Saver offering 3% on all balances

• eSaver offering a bonus rate of 4.5% for a $20 deposit and no withdrawals

• a Call fund with 3% for PIE customers

• Interest rates from 3% and rising to 5.5%, available on term deposits from $10k for 3 months to five years.

The best value savings award was introduced in 2010 to reward and encourage the bank offering outstanding value through a variety of of cash accounts.

Consumers can compare deposit account star ratings at the CANSTAR website; www.canstar.co.nz

The accounts were rated across three saving and two transaction profiles:

Online Saver

As the name suggests, an online account is managed via the internet only, with no branch access. Funds are generally accessed by transferring to a linked account. Page 2 of 3

Full Access Saver

These are savings accounts with more access, such as branch and phone. The Full Access Saver profile suits savers with high balances.

Incentive Saver

This profile looks at accounts that have conditional interest rates and/or prize draws associated with them. For this profile we looked at a lower balance, from $1K upwards.

Low Transactor

Suitable for people who prefer a wider range of transaction types such as branch, ATM, cheque, phone and internet. Average of 10 transactions per month.

High Transactor

Suitable for people who prefer a wider range of transaction types such as branch, ATM, cheque, phone and internet. Average of 40 transactions per month.

While getting the best interest rate for your savings should be at the top of your list, says Bonnar, there are other things you need to be mindful of to maximise the return on your savings.

“For example, avoiding additional costs can make a big difference to how quickly your balance grows. That’s why it’s important for savers to really understand their needs and choose an account to fit.”

CANSTAR offers tips to a better savings account:

1. Understand your account – not all savings accounts are created equal and fees, charges and interest can vary widely.

2. Use your savings account as a tool – just like a tool it pays to have the right one for the job. Are you a high transactor using branches, ATMs and the internet or do you only use your account occasionally? Get the best account that matches your needs and behaviour, and ask your bank for advice to make the most from your accounts.

3. Understand your money personality – are you a really disciplined saver, or do you need a little help? Whatever your money personality, choose an account matches your profile and savings goals.

4. Turn savings into investments - If your funds are not needed in the short to medium term considered a broader range of investments.

5. Monitor your savings regularly – keeping an eye on things regularly will help make sure you’re getting the best deal and keep you on track.

“And of course savings account customers should always be on the lookout for a better deal,” he says.

“It is never too late to start saving, whether you’re eight or 80. Putting money aside for a rainy day, retirement or a special goal is something we should all aspire to.”

The full deposit star ratings report from CANSTAR can be downloaded on www.canstar.co.nz
ends

© Scoop Media