'Emotional driver' leads people to put more in savings accounts, bank says

ANZ has launched a research project looking into the way in which people with low incomes interact with their savings accounts.

The bank’s findings revealed that people tend to be more successful when it comes to putting money aside – potentially into high interest savings – if they have an "emotional driver".

According to the institution, an example of this is saving for a child’s education, which can provide the motivation necessary to reach the goal.

Furthermore, these motivating factors are needed in order to override the "preference for the immediate".

Commenting on the results, Monash University associate professor Robert Brooks, who advised on the project, said products such as the bank’s Saver Plus accounts help people to make long-term financial decisions and overcome irrational choices.

"It is important to understand the complexity of human financial decision-making," he remarked.

The institution will use the data to further its financial inclusion and education projects.

In related news, Commonwealth Bank recently announced it is to invest $40 million in a five-year financial literacy program for kids.

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