Savings accounts 'a better option than shares'

Savings accounts are a safer and more efficient alternative to shares when it comes to earning high returns, it has been observed.

A report in the Sydney Morning Herald suggests savers will benefit from the government’s tax review plan, which proposes new tax breaks on interest earned in savings accounts.

The newspaper spoke to Reece Lyndon, a 29-year-old Elizabeth Bay resident who has stored his money in an ING online account for the past six or seven years. Mr Lyndon said he then invests the interest from the account back into his savings.

He claimed the practice had worked out much better than previous dabbles with mining shares, adding: "That was before the market took a dive, so I was reluctant to put the majority of my savings in that vehicle and I guess a savings account appears to be the safest and reliable and also easily accessible to draw upon without too much fuss.’‘

Aussies wishing to compare savings accounts have also benefited from rising interest rates in recent months.

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