Millions of Australians are clueless when it comes to crucial information about their bank accounts, a survey has revealed.
A Money.com.au survey found 57 per cent of Australians – around 12 million people – are unaware what the current savings rate of their account is.
It means millions of Aussies could be losing out on thousands of dollars in a cost-of-living crisis.
Money.com.au’s finance expert Sean Callery said Australians could be losing out all because of a simple check.
“If you’re not checking your savings rate, chances are you’re not getting the best return on your money”, he said.
“In this rate environment, not paying attention could cost you hundreds or thousands a year.”
There can be a huge difference in the savings rate of different accounts; some pay as little as 0.10 per cent per annum, whilst some can pay up to 5 per cent p.a.
The difference between the two can often mean tens of thousands of dollars can be lost by Australians over many years.
And Australians could benefit from shopping around, Callery said.
“Now is a good time to review your current rate and account conditions, and consider switching to a more competitive option, so you can be in a better position to weather any future rate cuts,” he said.
“Banks adjust their rates regularly, and even more often now that we’re in a rate-cutting cycle, so you should be checking your savings rate every few months… with some savings accounts, you’ll only earn the top rate if you’re meeting certain conditions, and if you’re not paying attention, the default base rate could be zero or close to it.”
The survey also found Australians of all ages could be more literate when it comes to basic knowledge about their accounts – 58 per cent of Gen Z and millennials were not aware of their cash rate and 57 per cent of Gen X and baby boomers did not know this crucial piece of information.
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