Aussies 'saving cash rather than investing in shares'

Mozo

Thursday 02 June 2011

Australians are increasingly opting to store their money in savings accounts and term deposits rather than investing their cash, recent data indicates.

Aussies 'prefer to put cash in savings accounts'

A study by financial research group CoreData found that savers have about $560 million deposited in bank accounts and other institutions, up $200 million on the 2007 figure, reports the Herald Sun.

Andrew Inwood, principal of the firm, observed that high-interest accounts make investing money in this way an increasingly attractive option, particularly in light of the recent financial crisis.

"High-interest accounts … can see a depositor receive a return two percentage points higher than the official Reserve Bank cash rate," he asserted.

Mr Inwood suggested that putting funds into savings accounts was seen by many investors as a way to "play it safe" during the difficult financial period.

Earlier this week, treasurer Wayne Swan cited figures from the Australian Bureau of Statistics indicating that household savings are at their second highest recorded level, the Herald Sun reported.

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