People saving for a house, holiday or car and retirees living off income from their cash deposits are frustrated by recent interest rate cuts. And confusion reigns about the rates they’re receiving.
Sinking savings account interest rates have resulted in a majority of Australians not knowing the financial return they’re getting from their cash in the bank.
New research by Canstar has found average interest rate cuts on savings accounts this year have totalled 0.65 per cent, and 55 per cent of savers don’t know what they’re getting paid.Australians, on average, have $21,500 in savings – with over-50s holding around $25,000 and under 30s having about $11,600, the research found.
Canstar spokeswoman Effie Zahos said it was not surprising that savers didn’t know their interest rate considering the rapid changes since the Reserve Bank started cutting rates to record lows in June.