Squeezing better returns from your savings is almost always possible, and it's worth a regular review. Sometimes better interest can be earned by switching to an online only account or a short-ish term deposit.
There are other tricks:
Notice saver vs term deposit
I'm a fan of notice saver accounts, which a few banks offer. Notice savers don't have fixed end dates. when you have to go through the hassle of reinvesting. Instead, you give notice when you need the money. The notice periods are often 30 days or 90 days, depending on the account you've chosen. One useful advantage is you can top them up a few dollars at a time when you have the funds. Notice saver interest rates often beat term deposits.
Bonus savers
These accounts pay a monthly bonus or offer prizes if you don't make withdrawals. The base interest rate, however, is low.
In order to qualify for the monthly bonus you must fulfil certain conditions. That might be not making withdrawals in a given month, or the overall balance must grow by a set amount, such as $50, every month.
Notice periods and minimum deposits
Often the longer you are willing to tie your money up for the higher interest rate.
At Westpac now, for example, you'll receive 1 per cent interest per annum for a one month term deposit, up to 3.35 per cent for nine months, and 4.10 per cent for five years.
Likewise, the larger your deposit the higher return you get. At BNZ, for example, the 12 month rate is 0.75 per cent on a $2000 term deposit, but 3.15 per cent for $20,000 or more over the same period.
Smaller banks, societies, credit unions
Overseas banks Kookmin and ICBC online have the same credit rating as Kiwibank and often offer good rates. Credit unions support their customers and communities and offer competitive rates. I'm a great believer in not-for-profit financial institutions.
