Aussies are confused by savings accounts

The global economic downturn caused something of a sea-change in Australia, as people are now spending their cash less frivolously.

A greater number of Aussies are looking to build a nest egg that will help them when they come to retire, which is very commendable.

However, a new study has indicated that a lot of people are essentially throwing away huge sums of money because they do not understand the difference between current and savings accounts.

The new RAMS Saving Satisfaction Survey has discovered that 38 per cent of Aussies are depositing money into low-interest transaction accounts, the Herald Sun reports.

In doing so, Australians are missing out on at least $5 billion in lost interest. At a time when budgets are tight and every cent counts, this is unforgivable.

The study also found that savvy members of society who have poured money into a specialised savings account will end up with a nest egg that is 29 per cent bigger than those who have not maximised the potential of their money.

Have a question about savings accounts? Ask the money gurus at Mozo Answers.ADNFCR-1761-ID-801370955-ADNFCR