Online savings accounts 'are the way forward'

Mozo

Thursday 22 April 2010

Online savings accounts are among the best places for Aussies to deposit their money, it has been suggested.

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John Collett, a columnist for the Sydney Morning Herald, noted that while mortgage holders are grumbling about rising interest rates, savers are benefiting from high rates of return.

In addition, Peter Arnold, a financial analyst with Canstar Cannex, told the writer that for the majority of people who want high interest rates with no fees "an online savings account is going to be the way to go".

Meanwhile, Harry Senlitonga, a senior analyst with Datamonitor, advised Australians to compare savings accounts, adding that it is in the interest of consumers to keep as little money as possible in their transactions accounts.

"While banks are paying good rates on their online savings accounts and term deposits, they continue to enjoy high profit margins on everyday transaction accounts," wrote Mr Collett.

The Daily Telegraph reported this week that the federal government is planning to bring in tax breaks for Australian bank accounts and deposits as part of a new savings scheme.

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