SMSF Switch and Save: Earn $4,998 more in interest every year by shopping around
Staying loyal over the long term can really impact how much you save for retirement
21 August 2023
In just over twelve months, self managed super fund (SMSF) savings rates have jumped from roughly 1-2% to as high as 4.1%, giving SMSF savers an opportunity to benefit from the RBA’s aggressive rate hiking cycle.
According to the experts at Mozo.com.au, switching from the average interest rate on an SMSF savings account to the most competitive rate, could earn you an additional $4,998 in interest every year.
After comparing 38 savings accounts available for SMSF account holders, Mozo found a 2.43% difference in savings rates between the average rate, and the highest rate currently on offer.
“A difference less than 3% may not seem like much on the surface,” said Mozo money expert Rachel Wastell, “but on a $200,000 cash balance, that equates to an average difference in interest earned of $4,998 in just one year.”
“Over five years, that difference is close to $30,000 in additional interest you could earn by switching to a better rate.”
“When it comes to SMSF savings accounts, staying loyal over the long term can really impact how much you save for retirement,” Wastell continued.
“If you want to make the most from your SMSF savings account, shopping around to get the best savings rate you can is crucial. Whether you’ve got $5,000 or $250,000 in cash to invest, every basis point on your interest rate counts.”
SMSFs are designed so that you can choose your investment options, and the experts at Mozo have found the top eight SMSF savings accounts offering the highest rates of interest on the market.
A number of these SMSF savings accounts were also announced as the recent winners of the 2023 Mozo Experts Choice Awards for Banking and Savings Accounts earlier this year.
Australian Military Bank, Rabobank, HSBC and Macquarie all took out wins across the SMSF banking categories, after Mozo’s expert judges analysed 67 banking and savings products for SMSF account holders, from 44 different providers. See the methodology here.