Channel 7 news looked into how savers can do better in a low-rate environment
Channel 7 told its audience that the big downside to the Reserve Bank’s historic interest rate cuts is that earnings on our savings are now rock bottom as well. They also highlighted “There are new options about, some paying more than 4 times what you will get from a bank.”
That’s us! Channel 7 interviewed our CEO Daniel Foggo, finance guru Peter Switzer and Plenti^ investor Michael Hill about investing at a time of record-low cash rates.
Low rates have supported record numbers of new investor registrations over recent months, with significant growth over the same month in 2018:
- A 65 per cent increase in June 2019
- An 85 per cent increase in July 2019
- An 89 per cent increase in August 2019
Plenti CEO Daniel Foggo said, “Everyday Australians are watching the returns from traditional offerings reduce to a trickle. Our record signups show savvy investors, new and seasoned, are increasingly attracted to the stable and attractive returns our platform offers.”
“Cash accounts are for saving, not for investing. Consumers should be questioning whether banks are a viable option to generate wealth, as keeping money in bank accounts and term deposits when interest rates are low can be a guaranteed way to lose money in real terms,” Foggo commented.
Supporting this recent investor inflow, recent research of Plenti investors shows more than 79 per cent of Plenti investors cite low bank interest rates as contributing to their motivation in switching to Plenti. The June Reserve Bank of Australia (RBA) rate cut had influenced 19 per cent of respondents’ 2019 investment strategy.
Plenti seeks to offer an attractive middle-ground for cautious investors, who want more out of their money than offered by their bank account but don’t want to expose all their hard-earned wealth to volatile stock market investments.
^Plenti was known as RateSetter prior to July 2020.