Earn up to $1,297 by investing some of your savings | Dollar Saver tip #79
Save: up to $1,297
Tip overview
The average Australian has around $37,915 in the bank1. If you leave your cash in a high interest savings account you could earn up to 5.5% p.a.
After 1 year, that would earn you $2,085 in interest.
Not a bad result.
But what if you diversified and put half your savings ($18,957.50) into a low-fee ETF (exchange-traded fund)?
Now, an ETF investment carries some risk, unlike a savings account. But the potential returns are higher.
Did you know?
The NASDAQ-100 has an average annual return of 14.39% over the last 20 years2 (including dividends).
Using that average return, after 1 year you'd earn $2,728. Plus $1,042 from putting the other half in a savings account.
That's potentially an extra $1,685.
