Australian households collectively miss out on around $30 billion of interest a year by keeping their money in lower-interest savings accounts. That equates to an average of $1474 per person each year, with a compounded loss per person over five years of $8228, according to a study by fintech company Upworth.

The interest that banks will pay for savings is higher than it has been in years, but it’s not destined to stay that way. With falling inflation indicating that the Reserve Bank of Australia (RBA) will start cutting the cash rate later in 2024 or early in 2025, savers should act now to lock in high deposit rates.