Savings accounts 'could be a useful tool for investors'

Aussies that are planning to invest in shares and stocks may benefit from opening a savings account to keep some of their funds safe.

In a piece for National Features, investment experts David and Libby Koch noted that it may be advisable to keep a percentage of the capital in a fixed-interest account.

This strategy, called the "percentage plan" means that if the stock market improves, some money is put back into the savings account to keep the ratio of money the same.

"With all formula plans, learn to accept that falling prices are a chance to invest more at lower prices to compensate for paper losses," the experts stated.

Earlier this month, Bendingo & Adelaide Bank's chief executive Mike Hirst asserted that many Aussies who have been online to compare savings accounts are topping these up rather than spend their disposable income.

He told the Herald Sun that people are increasingly keen to "clean up their balance sheets" in the current financial climate.

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