MILLIONS of Australians moving money out of savings and into investments like shares, cryptocurrency and superannuation


Australians are shifting money out of savings accounts and into other investments.

A national survey conducted by comparison site Finder has found 29 per cent of people with a nest egg in the bank have moved at least a portion of it due to the historically low rates they’re earning.

One in 10 of the 1015 respondents interviewed in July, or the equivalent of 2.1 million Australians, transferred some of their savings to what they described as an investment account.

Some have opted to diversify with shares, with seven per cent shifting money into micro-investing apps like Raiz and seven per cent using some of their savings to top up super.

A further five per cent have moved some of their savings into cryptocurrency.

Fewer Australians are opting to keep their money is regular savings accounts. Credit: AAP

Reserve Bank data shows one-year term deposit rates dropped to just 0.25 per cent in May, their lowest since 1982. Three-year term deposits fell to 0.3 per cent, their lowest in nearly 40 years.

Record low rates have made it tough for people to earn interest on money sitting in traditional accounts, according to investing expert Kylie Purcell.

“Instead, moving a portion of savings into shares gives people the opportunity to earn a higher return,” she said.

“Certain shares and funds also pay out dividends, which can give you an extra boost of cash.”


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