Savings Tips & Tricks

Back to Savings

1. Are you eligible for a fee-free transaction account?
2. Avoid account-keeping fees
3. Avoid using 'foreign' ATMs
4. Bank within your free-transactions limit
5. Basic banking accounts now available
6. Consider online savings accounts
7. Consolidate your banks
8. Do you qualify for a 'relationship discount'?
9. Go electronic
10. Guard against PIN complacency
11. Guard against unauthorised transactions
12. Keep accurate records
13. Make use of direct debits
14. Online transactions are cheaper
15. Online transactions are convenient
16. Review your accounts and banking habits
17. Save with a line-of-credit loan
18. Use a debit card instead
19. Use EFTPOS when shopping
20. Use your credit card to save bank fees

1. Are you eligible for a fee-free transaction account?

Most banks offer fee-free accounts to pensioners, students and children. Check to see if you fit their criteria.

2. Avoid account-keeping fees

By taking care to keep your balance above the minimum monthly balance level applicable to many accounts, you can avoid monthly account-keeping fees.

3. Avoid using 'foreign' ATMs

Not just overseas banks, but also the ATMs of local banks other than your own. The fee for an ATM withdrawal is usually steep and not counted among any free transactions.

4. Bank within your free-transactions limit

Know how many free transactions you get each month and what type of transactions they apply to (ie. electronic, over-the-counter) then bank accordingly.

5. Basic banking accounts now available

Basic banking accounts are designed to give pensioners, low-income earners other welfare recipients such as health care card holder’s cheaper access to banking services. Make use of them if you can. Compare basic accounts with other transaction accounts.

6. Consider online savings accounts

Consider alternative options such as online savings accounts. These new account offerings offer higher interest rates than traditional branch-based accounts and lower fees. Their returns can also be as good or better than fixed interest investments like term dposits and debentures.

7. Consolidate your banks

Some banks will offer a rebate of fees if you give them other valuable business, eg. Home loans, personal loans, term deposits.

8. Do you qualify for a 'relationship discount'?

Relationship discounts are available from banks and credit unions for those borrowers who consolidate a range of banking business with the one institution. Home and personal loan interest rate discounts, term deposit bonuses, savings account fee waivers and credit card annual fee waivers are commonly offered.

9. Go electronic

Use ATMs, EFTPOS, Internet and phone banking when you can as their transaction fees are lower than over-the-counter fees.

10. Guard against PIN complacency

To ensure against unauthorised access to your account, never become complacent with the security of your PIN number. Keep in mind that the majority of complaints involving unauthorised ATM & EFTPOS transactions due to cardholder negligence with their PIN are normally resolved in favour of the card issuer. To avoid this situation and reduce the risk of unauthorised transactions:

• keep your PIN or password secret and do not disclose it to anyone, including family and friends
• don’t record you PIN or password on your card
• don’t keep your PIN or password in an undisguised form on, or in, any item that could be lost or stolen with your card
• try not to let anyone observe your PIN or password as you enter it

11. Guard against unauthorised transactions

When making payments via BPAY using telephone or online banking, it is important to record your transaction details (receipt number and time of transaction) in the event of a complication or dispute.

At present, the payments system code of practice and EFT Codes of Practice, which ensure a high level of compliance amongst banks, building societies and credit unions is yet to extend to telephone and online banking services.

For this reason, and to guard against possible unauthorised transactions, always record BPAY and other transactions made via telephone or online banking.

12. Keep accurate records

Keep accurate records of your deposits and ATM transactions. It is also wise to keep copies of your loan application and approval documents in a safe place. This is the best way to avoid hefty fees which may be charged by a bank when its customers want to see copies of their cheques or loan files.

13. Make use of direct debits

Where possible pay regular bills with an automatic debit from your account. In most cases this service is free, and also reduces the amount of time you spend on your banking.

14. Online transactions are cheaper

Pay bills, check balances and transfer money between accounts using online banking. These transactions are significantly cheaper over the internet than over the counter - and far more convenient.

15. Online transactions are convenient

Online banking allows you to do your banking whenever you want, not when the bank wants to open for business. Internet banking websites offer 24-hour, 7 days a week access to pay bills, check balances and transfer money between accounts, even apply for a new account. Best of all there are no queues.

16. Review your accounts and banking habits

Take a good look at your account statements and understand your banking habits. Establish how much you are being charged in fees. Changing accounts to suit your banking habits, or changing the way you use your existing accounts, can offer many ways to cut fees and charges.

17. Save with a line-of-credit loan

Disciplined borrowers can make use of the increasing range of line-of-credit loans, also called salary account or all-in-one loans, which offer the chance to make every spare dollar work to reduce your home loan.

These loans allow your income to be paid directly into the loan account to reduce the loan outstanding sooner than waiting for the repayment due date.

You are also effectively making larger repayments because you only withdraw the money you need to live on each month, leaving all surplus cash in the loan account to reduce the balance.

In this way, the loan can be paid off much quicker and thousands in interest saved.

Line-of-credit borrowers must be disciplined, however, and not withdraw more money over time than is going in. Income you bank must exceed your total expenses by at least the value of your principal-and-interest loan repayment before there is any financial benefit.

18. Use a debit card instead

The safest form of card is not a credit card at all, but a debit card which offers all the convenience of paying with plastic. A debit card links to your savings account and debits it to cover the costs of purchases. Some cards can act as both a debit and a credit card.

19. Use EFTPOS when shopping

EFTPOS transactions are still fee free with many accounts. Even when a fee does apply, you can still save. When paying for the weekly shopping or filling the car up with petrol, get some cash out at the same time. This gives you two transactions - a purchase and a withdrawal - but they only count as one.

20. Use your credit card to save bank fees

Instead of withdrawing cash to make purchases, use a credit card with interest-free days to make as many purchases as possible.

At the end of each month, pay off your credit card in full by the due date using just one of your free transactions.