Compare savings account 'to make cash work harder'

Mozo

Wednesday 29 April 2009

With savings interest rates plummeting following months of interest rate cuts from the Reserve Bank of Australia (RBA), it is important that consumers compare savings accounts to get the most out of their money, The Daily’s Paul Clitheroe recommends.

He explains that for those that do compare savings account, it is still possible to build a healthy nest egg, although he describes the standard savings interest rates as "miserly" in comparison to those seen a year ago.

However, he goes on to state that tax rules may make it a smarter move to use any spare cash to pay off credit cards, home loans and personal loan debt.

"A high income earner can lose up to half their interest income in tax and in today’s low-rate environment, that means earning very little on your savings," he explains.

In an earlier article, Clitheroe advises that for those that face crippling debts, it is important to tackle those with the highest interest rates first.

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