One in three Australians are ditching the savings. Image – Canva
  • Record low interest rates are pushing Aussies away from savings accounts
  • One in ten are investing in shares instead
  • Micro-investing apps, super accounts and even cryptocurrency are some common alternative investments

With interest rates at record lows and not expected to rise any time soon there is little incentive to leave money dormant in a savings account.

This is why close to a third of Australians (29%) have decided to relocate part of their savings, according to a new survey conducted by Finder.

Finder-savings-survey
One in three Australians moved money out of savings due to low interest rates.

Kylie Purcell, the investment specialist at Finder, believes Australians are searching for the best ways outside of savings accounts to maximise their returns.

“The low cash rate has made it pretty tough for Australians to earn interest on the money sitting in their bank accounts.

Moving some of their savings into an investment account has been the answer for one in ten (11%) Australians.

Finder-investment-savings
One in ten respondents moved some of their savings to an investment account

“Moving a portion of savings into shares gives people the opportunity to earn a higher return.

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

An average Australian has $23,394 invested in shares, according to research from finder. This is equivalent to about half of their savings sum.

People have also redirected savings towards micro-investing apps (7%), topping up their super (7%) and even into cryptocurrency (5%).

Ms Purcell considers investment a smart way to increase net wealth but encourages anyone new to investing to do their research.

“Putting all your eggs in one basket is never a smart move – diversifying your investments between different funds and different asset classes helps to reduce risk.

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