The Reserve Bank of Australia (RBA) is keeping interest rates low – in fact, they’ve never been lower. The RBA is doing this in an effort to stimulate the economy – they’re hoping banks will follow suit by keeping interest rates on loans low too. That’s great if you’re borrowing money, but not so good if you’ve got money to save. With no sign of rates increasing by any meaningful amount in the short-term, how can you put your savings to work? There are a few options available, so take time to research the ins and outs of each before deciding on the best strategy to meet your circumstances… Term Deposits One way is to invest your savings in a term deposit – while the interest rates won’t be exceptional, they will be higher than an everyday transaction account. Important to know is that a term deposit may require you to lock your money away for a fixed period of time, so be aware of the required period and make sure you won’t be needing access to your savings. Introductory term deposits also offer better rates than transaction accounts but after a fixed time, the rate tends to drop. At that point you may might want to shift your money. Savings Accounts You can also put your money in an ongoing savings account. This will usually require you to drop money into the account each month. Shares and Bonds If you’re prepared to look outside the banks, you can always invest in shares or bonds. These have the potential to give you a higher return than relying on interest rates from the bank, however there are no guarantees. While bonds tend to be less risky than shares, both can lose you money, so do your homework and take advice. Pay down your loans If you own a property that has a mortgage on it, or you have personal debt, one of the most sensible ways to use your savings while interest rates are low is to pay your borrowings down. Making extra repayments can carve months – or even years – off your mortgage and save you thousands of dollars in interest. Paying a personal loan will do the same – just be sure to check the details surrounding early paybacks to ensure you won’t be penalised. The Ayers Group Can Help Grow Your Wealth At the Ayers Group, we’re here to help you manage your contracting administration and help grow your wealth with systems and services to streamline your paperwork and ensure compliance with your obligations. Give us a call today to find out more about how our expert advice can free your time so you can focus on making the most of your savings.