Eye-catching advertised rates for deposit accounts may well be introductory or special rates that are only valid for a limited period of time. After that, the rate your savings earn may be a lot less than you anticipated, says CANSTAR CANNEX financial analyst Jeremy Ooi.

Other traps savers should watch out for are minimum balances, and withdrawals negating the monthly interest rate, particularly in online savings accounts. It's all in the fine print and consumers are urged to read the terms and conditions carefully before putting their money up.

Higher interest rates offered on deposit accounts are now often accompanied by conditions that can seriously impact on your ability to make the most of those high rates, says CANSTAR CANNEX financial analyst Jeremy Ooi.

The most common form of condition wrapped into interest rates is the bonus rates. These are interest rates that are only payable provided certain conditions are met. Such conditions may include a customer not being allowed to withdraw for the month or the requirement to deposit a certain minimum amount per month in order to earn the advertised bonus rates.

Other types of rates being offered by many online savings accounts are introductory rates. These rates are higher and normally valid for a limited time only, say one year, for new customers. After the introductory period expires, the interest rate generally reverts back to a lower interest rate.

When weighing up the long-term suitability of this type of product to your needs, it is wise to take into account the interest rate this account will pay after the introductory period ends.

When considering the best deposit account for you, CANSTAR CANNEX advises you check out the following:

• Bonus rate terms
• Balance requirements
• Withdrawal limits
• Transfer times
• Linked transaction account requirements
• Restrictions applying to clients of other institutions

Savings Accounts ...