Savings accounts to become more important as living costs rise

Opening savings accounts and storing some cash for a rainy day may become an increasingly savvy financial decision for Australians in light of forthcoming increases to living costs.

According to figures from the Independent Pricing and Regulatory Tribunal (IPART), the average cost of energy for a household in the city is likely to rise by $230, while for those in the country it is expected to increase by $316.

Water and gas prices are also expected to increase by $60 and $30 a year respectively from July 1st 2011.

With a flood levy averaging $305 and some having to pay as much as $750, the need to compare savings accounts and start putting funds away for the future may become even more important for Aussie households.

IPART chief Jim Cox told the Daily Telegraph: "It is fair to say there will be cost increases across a range of services and the combined effect of that is of great concern to us."

This comes after Craig James, chief economist at Commonwealth Securities, told the Herald Sun that Aussies are becoming increasingly frugal.

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