Aussies 'are still saving despite high prices'

By Mozo ·

The rising cost of living and soaring fuel prices have not deterred Aussies from putting their money into term deposits and savings accounts, it has been claimed.

In a piece for the Gympie Times, chairman of the Australian Government Financial Literacy Board Paul Clitheroe noted that term deposits are an effective way to save because they lock money away and reduce the temptation to spend savings unnecessarily.

He cited recent figures from research group Canstar Cannex, which indicated that Aussies have up to $2.3 billion in term deposits, which is $400 million more than in February 2009.

Savings accounts are also doing well, as the figures revealed that Australians have about $1.9 billion stored safely.

"I'm a firm believer in having some backup savings for emergencies and clearly many households have cash available if it's needed," he asserted.

Mr Clitheroe added that households struggling to keep afloat financially may benefit from putting money aside each week.

Have a question about term deposits? Ask the money gurus at Mozo AnswersADNFCR-1761-ID-800517521-ADNFCR