Online savings accounts great for debt management

Signing up for an online savings account or cash management account is a great way to get debts under control, Credit Union Australia’s chief exec Rob Nicholls has claimed.

In a rundown of the top tips to get on the road to financial recovery, the boss claims that the savings accounts offer both great savings interest rate returns while still providing immediate access to cash.

While savings vehicles such as term deposits offer some steady returns, you need to be sure you can do without the cash for the duration of the deposit.

Commenting on the e-savings accounts, Mr Nicholls said: "You can use this account to accrue extra money to spend on a small luxury such as a holiday or at the sales at the end of the year, or as an emergency funds account in case unexpected bills come up."

In other recent advice, the union has urged consumers to make the most of the Reserve Bank’s historically low interest rates by paying off outstanding loans or investing wisely.

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