Banks safest place for cash post-crisis

Bank term deposits, savings accounts and current accounts are still considered the safest place to put spare cash as the economic crisis begins to lift, a new study from Westpac Melbourne Institute has found.

A new poll from the group shows that since June 2007, confidence in shares and super as safe-haven investments has been rocked, although it is beginning to recover from its lowest point in March this year.

However, banks are still viewed as the safest bet, although in a sign of the times, more than double the percentage of people polled said that paying off debts on credit cards, home loans and other products is the smartest way to use spare cash than was the case two years ago.

Around 11 per cent of people said they would use money they had saved to pay of debts in June 2007, compared to around 23 per cent this month.

Westpac’s chief economist Bill Evans summed up the overall findings of the survey by suggesting that dodging a technical recession has given a big boost to confidence levels in Australia.

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