RACQ Bank Head of Banking Product and Operations Will White said interest rates on deposit accounts were going up for the first time in more than a decade, making it a good time to look at how you can make the most of your savings.

“While rising interest rates can be a challenge for homeowners, this environment can also be an opportunity for people to get a return on their savings,” Mr White said.

“When you put money into a savings account, the bank pays you interest on that money.

RACQ Bank helping Queenslanders get even more

“The higher the interest rate, the more your investment will grow - which is why it’s important to check if your bank is passing on the RBA’s rate increases to your savings account.

“At RACQ Bank we’re committed to having some of the best saving rates in market.”

Mr White encouraged Queenslanders to look beyond the headline rate as the amount of interest you earn can be dependent on several factors.

“Just like when you’re comparing a home loan, you should look past the headline rate at the comparison rate to see the true cost, and also check the terms and conditions,” he said.

“Higher interest rate accounts often have conditions you need to meet to be eligible for that rate. 

“Requirements may include depositing a certain amount, making a particular number of card purchases with a linked everyday transaction account, growing your balance by a minimum amount each month or making no withdrawals.

“Also be aware of introductory rates which are only offered for a set time period before dropping to a lower interest rate.”

Mr White advised knowing what type of saver you are and what you’re saving for could help narrow down the type of account that would work best for you.

“Questions to ask yourself - will I be putting in a lump sum or small amounts? How regularly will I be putting money into the account? When will I need to access the funds?” he said.

“For example, if you regularly need to access your savings, an account that penalises you for making withdrawals might not be the best option for you.

“Most importantly, regularly review your savings accounts to ensure they’re still meeting your needs and helping you reach your financial goals.”

Banking products issued by Members Banking Group Limited ABN 83 087 651 054 AFSL 241195 trading as RACQ Bank. For more information visit www.racq.com.au/banking.

Any advice contained in the document is general advice and does not take into account any person's particular investment objectives, financial situation or needs. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives, financial situations and needs.