Cashing in on raising rates

The recent interest rate rises may have played havoc with home loans but there are a number of Australians reaping the rewards of the decision.

Higher interest rates - not only means higher mortgage repayments - but also yields higher savings rewards, with high-interest accounts benefiting the most by the Reserve Bank's decisions.

Recent figures from the Reserve Bank, however, have shown that some of the major banks have proved sluggish in passing on the higher interest rates to their savings accounts.

As a result, consumers are being urged to shop around to get the best deal for their dollars.

Jeremy Ooi, analyst with financial research company Cannex, told Australian Associated Press that consumers should look at the market for the average returns on their money,

"With the top-five highest-paying term deposit and online savings accounts, you should be getting an interest rate of at least seven per cent.'

"People have this mentality of not wanting to be bothered, but it can add up to a lot of money (you're missing out on).''

Online savings accounts allow you to transfer money to and from other accounts without the usually account keeping or withdrawl fees, they also usually offer higher interest rates.

Meanwhile, term deposits are usually from one month through to five years with higher rates of interest for the longer periods. Consumers are advised to watch when the interest is calculated and paid into the account.

Some good has come out of the continuing global market crisis, consumers just need to shop around and find it that's all.

Australian savings accounts compared and reviewed.

Latest Money News from Money-Au.com.au