"Should I put my savings, currently in a reward saver account with the bank, into my super to boost it?"
Marie in Brisbane, QLD
Top answer provided by:
Hi Marie, this is a question we hear often. Congratulations on exploring your options before you act…A wise choice.
Before I answer I need to split the Question into three questions;
- What is the money you are investing (either in your super or to invest it in a bank account)?
The time frame of your goal, and therefore when you need to access the money, may dictate the answer for you. Superannuation has restrictions around when & how you can access it, whereas a bank account is a lot more accessible
- What is your risk tolerance?
Depending on how your super is invested, your decision to put the money into your super account may require you to do a full review of your existing super. For example, by contributing your money into your super fund rather than your bank account, you may be choosing to invest it in things like Aussie & international shares (which carry intrinsically higher 'ups & downs')
- Is there tax consequences of your decision?
There are different tax outcomes for investing your money in a bank account versus your superannuation. This may impact your decision.
In short, there is no simple answer. You need to work out the pro's & con's of your decisions, and it's often a bit like following the White Rabbit if you don't start with those three questions I have listed above.
I hope that helps!
Cheers - MH
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