Get a savings account rate over the inflation rate

Many savings accounts and term deposits are losing people money because they don’t deliver more interest than the current inflation rate.

However, there are a handful of accounts that are growing people's money in real terms, after inflation and tax eat into the accounts' financial returns.

The current average savings account interest rate, not including introductory rates, is 2.55 per cent, down from 2.95 per cent a year ago.

Inflation is running at 2.9 per cent and the average Aussie pays about 30 per cent in income tax so savers need to shop around for savings accounts or term deposits with a total rate of at least 4.14 per cent on their cash.

Source: Adelaide Advertiser

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