Learning how to save effectively can help you achieve your goals and financial well-being. However, with this cost of living crisis pinching our budgets, saving any money can seem like a challenging or even impossible task. Luckily, many financial institutions and banks offer interest rates with their savings accounts. These interest rates are designed to help you save, working as motivation and reward. Whenever you contribute a certain amount to your savings, you will earn interest each month, based on the interest rate of that particular savings account. The more money you have in the account, the more interest you receive.
There are many different savings accounts on the market in New Zealand. It is important to compare them all to make sure that you are choosing the right option for you and your goals.
Who Has the Best Savings Account Deal?
At the time of this article publication, a great option would be the bnz Rapid Save account, with the total interest rate of 4.55%. For this option, there is no manual or auto deposit fee, and no minimum balance.
Here at Money Compare, we recommend comparing all the options available to you. Jump on our comparison platform, and compare different savings accounts so you can make a fully informed choice, and select the right option for you. Once you have chosen your savings account, be sure to set up an automatic transfer for each payday, so that a certain amount of money automatically transfers to the account, and you can grow the funds without having to think too much about it. With the reward of the interest, you will be able to meet your savings goal in no time.
Other Ways to Save Money
1. Compare Broadband and Power
A great way to unlock savings in your expenses is to compare your broadband and power bill. These can be cumbersome bills, and when you compare the different options available to you, you empower yourself to find a better deal. Broadband Compare and Power Compare are designed to help you compare different plans and providers within just a few minutes, and switch to a better deal right away. Our platforms are bias-free, hassle-free, free to use, and give you the chance to find a plan that offers more value, so you can save some money and put those funds towards more important things.
2. Cancel Subscriptions
How many subscriptions do you have that you just don’t really use? It’s a good idea to declutter your subscriptions and cancel ones that you don’t use. Reduce your streaming service subscriptions to only one or two, and consider choosing the one with the cheapest monthly price. As of 2024, Prime had the cheapest subscription price.
3. Reduce Spending
Keeping track of your spending habits is a smart move. Take a few weeks to track where you spend your money, particularly on leisure and non-necessities. Where can you cut your spending? Can you swap your daily weekday takeout coffee with a homemade one, or use the work coffee machine? Avoid buying things just because they are trending on social media. Think twice before hitting buy. Do you really need it? Could you put the money you would spend on that item towards your savings account instead?
4. Set Goals
It’s always a good idea to set savings goals. This means you’ll be more motivated to put money aside each month, as you’ll have something to work towards and look forward to. Set both short term and long term goals. A short term goal might be a new phone or overseas holiday, whereas a long term goal may be a home loan deposit. Make sure you reward yourself along the way so that you can keep yourself motivated and hold yourself accountable, while tracking and recognising your progress.
