Latest Research Shows Men Are Better Savers Than Women
A research study by Celsius Research of online savers, commissioned by RaboPlus, the online banking division of AAA rated Rabobank Australia Limited, shows men are more disciplined about their savings than women, and are saving more each month.
Sydney, NSW, Australia (PRWEB) May 8, 2009 -- Despite a dash for cash, Australians are still saving erratically and thinking about the good things in life, but the majority of savers don't know what savings product they have and are getting lower rates, according to new research. The research study by Celsius Research of online savers, commissioned by RaboPlus, the online banking division of AAA rated Rabobank Australia Limited, shows men are more disciplined about their savings than women, and are saving more each month.
The research also found that 83% of respondents claim that a better ongoing interest rate from another institution would prompt them to shop around for a better savings product and males (21 %) were more likely than women (9%) to be lured by cash incentives, and promotional rates (39% compared to 27%).
Greg McAweeney, RaboPlus General Manager, said the top savings goal - to have a cash buffer in case of disaster (55%) - was consistent with the economic times, although the second ranking goal - to take a holiday (46%) - was surprising.
Property acquisition ranks as the next priority for savers with 28.7% nominating a deposit for a home as important, closely followed by investment property deposits (27.2%).
Luxury goods remain high on the list with almost one in four (24.3%) respondents nominating that as a goal. Children's education savings ranked as the tenth goal, in stark contrast to another study several years ago.
Mr McAweeney said the study also clearly shows that customers are less trusting of advertising with 67% of savers using comparison sites to research the best product with cash incentives representing a big drawcard for 35%.
"Customers are getting frustrated with some banks about the level of upfront disclosure in advertising. We can see the advertised rate only worked for one third of customers, while the price comparison sites are the preferred way of research."
"We have met with a number of operators of these price comparison sites to suggest ways of introducing greater transparency in product ratings. There have been some improvements but there is more that can be done to protect the consumer."
Mr McAweeney said a staggering 92% of banking customers believe that financial institutions needed to provide a true picture of their advertised savings accounts with the conditions clearly outlined.
"Not only is the real rate often less than the headlined rate; the advertised rate and conditions may also change over time, confusing customers even more. Customers are rejecting savings accounts with promotional rates and onerous restrictions in favour of products that combine real transparency with an ongoing competitive rate all year round."
Over 40% said they were receiving an interest rate of less than 4.0%. In fact 60% of people didn't know the name of their savings product.
According to Mr McAweeney, "Too many consumers are likely to be receiving a very uncompetitive interest rate, victims of their own inertia. Clearly, a large number of people believe they are receiving more interest than they actually are. In fact, there are a number of savings products with base rates of just 0.01% and complicated bonus structures."
Recent research from InfoChoice estimated that $144 billion in savings is not earning the best possible interest rate.
Poor customer service isn't necessarily the major driver behind switching banks with only 29% of respondents giving it as a reason for change.
Earlier research by RaboPlus found that nearly 40% of respondents had opened a savings account, purely because of the honeymoon promotional rate.
"Consumers are being encouraged to open accounts by promotional offers that don't deliver over the long term," he said.
"The banking industry needs clear standards for advertising savings products which give consumers the real of rate of return over time; upfront conditions; and a completely transparent offer in bold type," Mr McAweeney added.
The study is important because it shows that not only are customers saving irregularly, but almost one in two savers are saving less than $1,000 per month in accounts, which are perceived to offer interest rates higher than the actual amount
Other findings of note included:
| | - Most people prefer to have their money in at-call deposits (60.9%) rather than a term deposit (39.1%).
- Six-month term deposits are the most popular length of term (31.6%), suggesting savers believe that rates may well increase over a longer period.
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*Source: RaboPlus and Celsius Research
Media Contact: Tony Rasman, 0418 208770.
RaboPlus is a division of Rabobank Australia Limited, part of the international Rabobank Group, the world's leading specialist in food and agribusiness banking. Rabobank has more than 100 years' experience providing customised banking and finance solutions to businesses involved in all aspects of food and agribusiness.
Rabobank operates in 43 countries, servicing the needs of more than nine million clients worldwide through a network of more than 1600 offices and branches. Rabobank is among the 20 largest banks in the world based on tier one capital.
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