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Business news and updates: Australians moving money out of savings

Dynamic Business brings you a daily rundown of the most recent business news and developments from Australia and around the world. Here’s the roundup for September 28:

Australians moving money out of savings

Australians are transferring their assets out of savings accounts and into other types of investing. According to a national poll done by comparison site Finder, 29% of people with a nest egg in the bank have shifted at least a portion of it due to historically low-interest rates. 

One in every ten of the 1015 respondents polled in July, or the equivalent of 2.1 million Australians, said they had transferred some of their funds to what they called an investing account.

Some have chosen to diversify with shares, with 7% putting money into micro-investing applications like Raiz and 7% utilising some of their savings to top up their super. A further 5% have invested some of their savings in cryptocurrency. 

According to Reserve Bank data, one-year term deposit rates fell to 0.25 percent in May, the lowest level since 1982. Three-year term deposits decreased to 0.3%, the lowest level in nearly 40 years.

‘Effective unemployment’ is as high as a year ago

According to ACOSS, the “effective unemployment rate” is the same as it was in October of last year. However, only 11% of the labour force received government assistance, compared to 26% a year ago. 

According to ACOSS, just 16% of working-age welfare users in restricted areas receive additional COVID-19 payments.

Nike and Costco warn of product shortages and delays

Nike, the world’s largest athletic company, and Costco, the world’s largest retailer, have both reported product shortages and delays as a result of global supply chain issues. 

Nike announced that production and delivery of their shoes would be disrupted until next spring due to shipping challenges and a manpower shortage in Asia. Meanwhile, Costco has re-imposed restrictions on commodities such as toilet paper. 

Customers are stockpiling again, according to the company, but it is also having difficulty shipping supplies to its stores. Nike announced that it had reduced its sales forecast for the year owing to the continuous disruption.

Google to slash amount it keeps from sales on its cloud marketplace

According to CNBC, Google will take a lesser cut when users purchase software from other suppliers on its cloud marketplace.

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Yajush Gupta

Yajush Gupta

Yajush is a journalist at Dynamic Business. He previously worked with Reuters as a business correspondent and holds a postgrad degree in print journalism.

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