Millions of Australians are clueless when it comes to crucial information about their bank accounts, a survey has revealed.
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.”
The interest rates on savings accounts can vary greatly; some offer as little as 0.10% annually, while others provide up to 5% per annum.
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.
“It’s an ideal moment to evaluate your existing rate and account terms. Consider moving to a more favorable option, which can better position you against potential future rate reductions,” he advised.
“Banks frequently modify their interest rates, especially now during a rate-reduction phase, so it’s wise to review your savings rate every few months. With certain savings accounts, the highest rate is only earned if specific conditions are met. If you overlook this, the basic default rate might be very low or nearly zero.”
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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