A savings accounts are accounts provided by banks and financial institutions designed to allow you to put your money away on a regular basis and create a regular savings pattern. With most savings accounts you will be able to withdraw your money when you need it. Savings accounts are the ideal vehicle for your short term savings as they earn interest without the risk of losing the initial amount and help you build available funds for medium to long-term investment of capital. Withdrawing or depositing funds is usually free but some savings accounts do have conditions on deposits and withdrawals which may mean your funds are not immediately accessible, particularly from those accounts which offer the highest interest rates (see Interest Rates). Unlike a current account, savings accounts uasually pay higher rates of interest but may not offer quick access to funds, for example via ATM cash withdrawals, or payment options such as chequebooks or debit cards, although there are exceptions to this rule. In addition, the types of services associated with current accounts such as arranged overdrafts, standing orders, direct debits and direct salary deposits are not typically available with a savings account.
In Australia there was previously little competition between savings accounts, with most offering the same or very similar facilities and rewards. Nowadays, most savings accounts cater for a specific customer group and their particular needs, such as for young people, pensioners or the self-employed. For more details on the types of savings accounts available, see Instant Access Savings, Medium to Long-Term Savings, Online Savings Account, Savings Accounts for Children and Other Savings Accounts.
