Increased product specialisation means that there are now three distinct types of deposit accounts on the market, says CANSTAR CANNEX financial analyst Jeremy Ooi.

Transaction accounts, cash management accounts and online savings are all very different in what they offer and selecting the right one for your purposes is essential if you are to make the most of your money.

Many consumers who want to put their money in a savings account often do not know what suits them best, says CANSTAR CANNEX financial analyst Jeremy Ooi.

It’s not surprising, given that we evaluate no less than 83 online savings accounts,170 personal transaction accounts and 116 cash management accounts.

The differences between online savings accounts, cash management or transaction accounts and term deposits are all distinctly defined but before choosing the right type of deposit account, the consumer should first determine what features are important and likely to be used. Is the consumer happy socking away savings in an online account and not touching these funds very often? Is money going in and money going out constantly a more likely scenario? Or is money to be minded safely in a term deposit until the share market settles down? The table below outlines the relative advantages and disadvantages of each type of cash management account in helping the budding saver to choose what’s right.

Savings Accounts ...