Fixed rates and easy-access rates are not a test of how brave you are. One gives you a known return for a set period. The other keeps the money more flexible while allowing the rate to change.
Choose based on when you need the money, and what it would cost to be wrong — not based on which number looks biggest today.
When easy access makes more sense
Favour easy access when the purchase date is uncertain, you are rebuilding emergency savings, or your income may change. It also suits money you expect to move soon but have not assigned yet.
This matters even more when the fixed rate is only a little higher. A small extra percentage is not much help if you pay a charge to get your money out.
When fixing makes more sense
A fixed term fits better when the amount and date are clear, your emergency savings sit separately, and you are comfortable leaving the money alone. It can also protect you if easy-access rates fall during that period.
Read what happens at the end of the term. Some products renew automatically onto a weaker rate if you do nothing.
Do the sums on $50,000
If a fixed account pays a little more, but leaving early costs several months of interest, and there is a real chance you will need the money, work out that cost. Do not rely on “it will probably be fine.”
Write down when the money must be free. If you cannot, favour access or a short term. Review when a fixed term ends or a bonus rate finishes — not every week.