Which Savings Account
If you are looking for the highest interest on your savings accounts then you would be wise to avoid any of the big 4 savings accouts. A recent report has commeted how the big four are offering some of the worst interest rates.PEOPLE who put their money in savings accounts offered by the Big Four banks have lost more than $1 billion in earnings over the past six months because of lower interest rates, research by financial comparison company InfoChoice has found.
The company found that instead of shopping around for the best rate for their savings, most people stuck with the Big Four.
“Stagnant savers are typically apathetic savers who choose to deposit their money with the Big Four’s transactional accounts on the basis of the perceived security of the bank, despite the fact the majority of the accounts offered little to no interest,” InfoChoice’s Adam Rigby said.
InfoChoice found that NAB, Westpac and the Commonwealth offered three of the four worst interest rates available.
The best rates were offered by OneDirect (6.12 per cent), Members Equity Bank (5.76 per cent), Elders Rural Bank (5.53 per cent) and RaboPlus (5.23 per cent).
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“Although Australians are becoming better at availing themselves of high interest at-call savings accounts, too many still maintain high balances within transactional accounts,” Mr Rigby said.
“Many of these pay interest as low as 0.01 per cent, although we have begun to see the emergence of a new breed of transactional accounts offering decent rates, led by institutes such as AMP and Members Equity.”
InfoChoice said it conservatively estimated that Australians had $144billion that was not earning the best possible interest rate because of the 2.20 per cent gap between the highest available rate and the lowest rate offered by one of the big four major banks.
“At a time when all deposits are guaranteed by the Federal Government and AAA-rated, there is no better time for Australians to be searching for the best possible deal,” Mr Rigby said.
He said those most vigilant of rate movements could get an average interest rate of 6.44 per cent over the past six months.
Stagnant savers received on average of just 4.61 per cent when their money was put in an online at-call account with one of the Big Four.
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