A recent survey conducted by Money.com.au has revealed that a staggering 57% of Australians, approximately 12 million individuals, are unaware of their bank account’s current savings rate. This lack of awareness could result in many Australians missing out on substantial savings during the ongoing cost-of-living crisis.
Finance expert Sean Callery from Money.com.au highlighted that the failure to check savings rates could cost Australians hundreds, if not thousands, of dollars annually. The discrepancy between savings accounts is significant; for instance, some accounts may offer as low as 0.10% per annum, while others can yield up to 5% per annum. Over time, these differences can lead to tens of thousands of dollars lost due to inattention.
Callery encourages Australians to take proactive measures by reviewing their current savings rates and considering more competitive alternatives. With banks frequently adjusting their rates, especially during this period of rate cuts, it’s essential to monitor accounts regularly. Furthermore, some savings accounts require certain conditions to be met to earn the top rate, meaning that failing to stay informed could lead to default rates that are alarmingly low.
The survey findings also indicate that financial literacy regarding bank account details is lacking among all age groups. An alarming 58% of Gen Z and millennials, as well as 57% of Gen X and baby boomers, reported being unaware of their account’s cash rate.
In light of this information, Australians are urged to take a few moments to check their accounts, as increased awareness can lead to better financial outcomes in these challenging economic times.