Online savings accounts 'are beating bond yields'

Australian investors can currently get better returns with online savings accounts than they can with ten-year bonds, it has been claimed.

Finance commentator David Potts noted that with growth picking up and inflation in check, Australia is getting close to "economic bliss".

However, he claimed that despite such stability, there remains uncertainty on the Australian sharemarket – partly because "global money movers" have grown in influence since the global financial crisis.

Writing for the Sydney Morning Herald, he said: "The most telling evidence is the yield on ten-year bonds being driven below five per cent, less than you would get on an at-call online savings account."

"The situation is even stranger on Wall Street, where bond yields struggle to stay above zero," added Mr Potts.

His comments may encourage more Aussie investors to compare savings accounts while bonds and shares stagnate. News Limited recently noted that the All Ordinaries index of 500 companies is struggling to deliver shareholders year-on-year growth, with figures from last week showing that the index was trading at the same level it was exactly five years ago at just over 4,400 points.

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