Australians missing out on $4 billion a year in savings interest.

Friday 10 May 2013

Article by Mozo

Australians who 'set and forget' their savings could be missing a combined total of $4 billion a year in their savings accounts.

Australia's savings accounts missing interest

Australian saving habits have made a fair amount of news in recent months with Aussies finding a new determination to top up their savings balances. One institution even reported that Australians have gone as far as to triple their savings from an average account balance of $5,155 in 2011, up to $15,427 in 2013.

But the Savings Satisfaction Report by RAMS has found that only 45 percent of Australians use a high interest savings account. And of those, 85 percent of people have not searched out a better interest rate savings account in the last year, despite many banks cutting their rates in recent months. Astonishingly, 40 percent have not changed their main account in over a decade.

The report found that if 38 percent, or $207 billion, of 'lazy deposits' were moved into high interest savings accounts, the accrued interest would be more than $4 billion in earned savings.

"Despite Australians working hard for their money and seeking to be rewarded with the best possible rate of return, it's concerning our results found the majority are taking a set and forget approach to managing their savings," said RAMS chief executive, Melos Sulicich.

"It is interesting to note, only 22 percent of those surveyed said they were regularly moving their money around and chasing the highest interest rates," Mr Sulicich added.

Australians looking to meet their savings goals sooner and searching for a top interest rate can seek out Australia's best term deposits and high interest savings accounts on Mozo.

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