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Savings mistake costing Aussies $2,039

Aussies could be losing up to $2,039 by making this simple money mistake.

People walking and Australian money. Savings account concept.
Two-thirds of Aussies don’t know how much interest they are earning. And it could be costing them thousands. (Source: Getty)

Two-thirds of Aussies are making a very basic mistake that could be costing them more than $2,000-a-year.

If you were asked what the current interest rate is on your savings account, would you know the answer? New research has shown that a whopping 64 per cent of us don't know, and if you're one of them it could be costing you thousands.

The average Australian could save $2,039 if they switched their savings from an account that doesn't earn interest to a more favourable one, according to Finder. That's based on someone with $38,290 in cash savings, depositing $681 per month.

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So what are the best accounts to maximise your interest rates? The top rate is currently from Bank Queensland’s Future Saver, which offers a 4.75 per cent interest rate for customers aged between 14 and 35 who deposit $1,000 and make five transactions each month.

Aussies outside this age bracket can earn 4.55 per cent with ING’s Savings Maximiser when they meet savings conditions - depositing $1,000, making five card purchases and growing their balance each month.

Finder savings rates table
(Source: Finder)

Finder money expert Alison Banney said Aussies will usually need to look outside the big four banks to get the best rates.

“If you’re not getting a competitive rate, it’s time to consider switching as savings rates continue to climb,” Banney said.

“With interest rates on the rise, your leading rate a few months ago might not be the best right now.”

Interest rates to rise tomorrow

The Reserve Bank is expected to increase interest rates again when it meets tomorrow, with a 0.25 per cent rise largely expected by economists. This would take the cash rate to 3.35 per cent.

Treasurer Jim Chalmers has asked the Australian Competition and Consumer Commission (ACCC) to investigate the savings rates being offered by the banks, in light of the recent interest rate rises.

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