Over 80% of Australians 'in the dark over savings'

Some 81 per cent of Australians have "no idea" about the rate of interest offered by their savings account, a new survey has found.

The Citibank-commissioned study conducted by Galaxy Research found that higher earners are the least likely to know the rate at which their savings are growing, with 16 per cent of households in the highest income band of over $70,000 unable to name their account's interest level, news.com.au reports.

By contrast, 30 per cent of those with incomes of $40,000 or less knew their saving account's interest rate.

Citibank's director of wealth management Suvrat Saigal told the site: "While every dollar counts towards your savings goal, those with higher balances are missing out on significantly higher earnings by being blase about interest rates."

Overall, the poll found 24 per cent of men and 15 per cent of women were aware of their savings rate, while another 21 per cent of men and 34 per cent of women said they had known their rate when they opened their account, but had since forgotten it.

The survey also discovered that the national average of people with some form of savings account is 26 per cent. Western Australia had the highest proportion of savers at 39 per cent, while Queensland was found to have the lowest level of long-term investors at 21 per cent.

The poll questioned 1,100 Australians aged 16 and over.

According to the Australian newspaper, some savings accounts can offer consumer benefits higher returned and lower or no tax on their contributions.

Australia's best savings accounts compared and reviewed

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