Bank accounts are one of those products that customers tend to use for years on end without ever researching what else is on offer in the market. It’s only ever when we have a bad experience or undergo a significant life event (birth, death, marriage) that we start to think twice about who we leave our money with.
This is a shame because not only do big banks have a reputation for treating their customers poorly but because there’s often a better deal just waiting to be cashed in on.
Take a look at the interest rate you currently have on your savings account. If you were lucky to lock in a juicy fixed rate ten years ago (when you could earn 5% or more), you’d be crazy to change banks.
But, if you’ve got a transaction account (which usually won’t accrue any interest) or a savings account with a low interest rate, you could be missing out.
Here are some of the best compounding interest rates on the market right now, alongside a graphical representation of how they’ll perform if you save $500 a month for the next ten years: