It’s been another bleak week for at-call deposit rates, as ING becomes the latest bank to take the axe to its high interest savings offer. Coming into effect Thursday, ING’s 15 basis point cut brings the maximum rate available on its Savings Maximiser account down to 1.65%.Still, to earn this new maximum rate, customers must fulfil a couple of monthly conditions: deposit at least $1,000 into their linked ING bank account and make at least five transactions using their ING debit card. This move comes just days after Xinja also reduced the maximum rate on its Stash savings account by 15 basis points to 1.65%.
Despite the recession and Covid-19, financial comfort for Aussie households has actually increased over the past few months. The question is, are these newfound comfort levels longlasting, or a sign of skating on thin ice?
Between empty shelves at our local supermarket to applying for financial hardship for the first time, the Covid-19 pandemic has given everyday Aussies perspective. The pandemic has also given Aussies a new outlook on money. According to a new survey by ME, about 50% of Aussies are now having more money conversations, with 71% attributing the Covid-19 pandemic as the reason. “While the economic impact of COVID-19 has been a huge challenge for many Australian households, it has heightened our need to better understand our money, particularly among young Australians, who have not faced a crisis of this nature in their lifetime,” said ME general manager of deposits, John Powell. Some of the hot topics that made the rounds included savings (68%), household spending (53%) and bills (51%). Surprisingly, purchasing and selling property was the least popular conversation, followed by debt, while 28% talked about current government benefits, like the JobKeeper and JobSeeker scheme. In terms of who they prefer to talk to about their finances, 62% of Aussies chose their significant other or partner, followed by family members (48%) and friends (35%). Interestingly, less than 10% said that they spoke to their bank or financial expert about their financial situation. “We’re of course more likely to have these types of personal conversations with those we know and trust, but it’s smart to also consider speaking with a financial expert where possible,” said Powell.
Forty-four per cent of young people have either lost work hours, received a pay cut, been stood down or made redundant as a result of Covid-19, according to a recent report from ANZ.Young people have been hit hard by the current recession, but that doesn’t mean they’re down. We spoke with Melbourne-based millennials Maggie and Chloe about how they’ve managed to make ends meet during the pandemic.
The superannuation numbers are in and things aren’t as worrisome as some savers may have anticipated given the economic impacts of Covid-19.Industry research group SuperRatings assesses balanced super options from the major 50 funds in Australia through their SR50 Balanced Index. Across the last 12 months, Suncorp has been performing the strongest within this group with returns of 3.8%. This was followed by balanced options from BUSSQ (2.5%) and Australian Ethical Super (2.4%). While the estimated median return sits at -1.2%, SuperRatings said the top 15 assessed options saw slim but positive returns.However, these ratings don’t take into account smaller funds which haven’t been operating for more substantial periods and thus can’t report long-term returns (which is a key part of the ratings metric). When newer players were considered, Future Super took out the top spot with its Balanced Index delivering 5.52% growth in the last financial year. The social equality and sustainability-focused fund also took home silver and bronze, with its Renewables Plus Growth and Balanced Impact options garnering returns of 5.26% and 5.21% respectively.Co-founder of Future Super, Kirstin Hunter said this data shows Aussies they don’t have to sacrifice financial gain to maintain their ethical standards.“At Future Super we’ve long understood that investment in unethical businesses doesn’t just have a detrimental impact on the environment and society, but also represents a bad investment choice that will damage how comfortably Australians can retire,” she said.SuperRatings executive director, Kirby Rappell, also reminded super members this kind of investment is a long-term game.“Members should avoid chasing short-term results and ensure they are invested in a quality fund with the right investment strategy that is well positioned to deliver for their needs over the course of their working life,” Rappell said.In SuperRatings’ ten-year assessment, the top performers have been AustralianSuper, whose balanced option has returned 8.8% p.a. across the last decade, followed closely by UniSuper and Hostplus. RELATED: How to build an emergency savings stash and leave your super intact.
Two of the highest ongoing savings account rates in Australia are being reduced again, with neobanks 86 400 and Up both dishing out the rate cut treatment this week.
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