September 29, 2010
Much like the TV series Keeping Up with the Kardashians, life is pretty busy. Between work, catching up with friends and family and trying to stay fit and healthy, it’s hard to not lose track of time – not to mention the affect your lifestyle can have on your savings. But the good news is that more Australians have been keeping up with their savings.
Increase in household savings
According to data from the Australian Prudential Regulation Authority (APRA), Australian households have deposited an extra $8.3 billion to their savings in July this year compared to the previous month.
Household deposits also showed growth of almost 9 percent in July compared to July 2010, and were up by $37.1 billion.
RateCity estimates that approximately 3.5 percent of this growth would be from interest earned on existing deposits, which means that around $23 billion is additional money that Australian households have deposited into their banks such as online savings accounts.
Aussies take it online
More Australians are turning away from traditional methods of applying for their savings accounts. RateCity found an increase of 6 percent in the number in people applying for savings accounts online in August compared to July, and almost double the number of applications in August compared to August 2009.
RateCity CEO Damian Smith said that more households are catching onto the benefits when they compare savings accounts online.
"These results show," Smith said, "that when there’s healthy competition in the market and when it’s easy to compare products, more Australians will shop around and open new accounts and as a result deposit their money.
"Whereas when it is difficult to compare deals and institutions are not transparent enough – such as with car insurance – then Australians won’t compare and switch deals."
It’s proven that shopping around for an online savings account is worth the savings you can make. And in no time you might just be able to keep up with the Kardashians of your neighbourhood by saving up for the things you really want.