Savings accounts back in vogue

Friday 31 July 2009

Article by Mozo

Australians will be able to take advantage of rising interest rates offered on savings accounts in the coming months as the Reserve Bank brings the cash rate higher, one financial expert has enthused.

Speaking to the Australian, interest rates expert Andrew Willink said that while term deposits are offering some uncommonly good deals at present, a savings account provides people with the flexibility of being able to withdraw their cash at any time.

However, InfoChoice chief executive Shaun Cornelius advised that for those who are searching for savings accounts, it is vital to look at the small print.

"There are some accounts that will give you a rate to September 30, for example, and then revert to a much lower rate, while other accounts are not tied to a date but are tied to you making no withdrawals," he explained.

Earlier this month, the University of New South Wales and the University of Technology, Sydney issued a joint study indicating that despite concerns about the ongoing economic trouble, Aussies were developing a strong appetite for risk and would opt to stick their cash in stocks and shares rather than a safer savings account if given the option.

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