Australians are turning to robo-advisers to boost their returns

Investors hunting for decent returns on their hard-earned cash are looking at other options outside of parking their money in the bank.

Interest rates on term deposits and online savings accounts remain around 1 to 2 per cent while the value of Australian sharemarket has climbed by 9 per cent over the past 12 months.

Shares have also paid dividends averaging a healthy 4 per cent.

Accountant Guy Bane, 29, said he was always looking to diversify his investments and he had steered clear of keeping cash in the bank.

Instead he used robo-adviser Stockspot to do the hard work for him.

“I’m trying to build a bit more wealth so if the property market does go down a bit more I can possibly buy,” Mr Bane said.

“I try to invest parcels of $5000 to $10,000 each time and it’s easy to have the money invested for me.”

Mr Bane said he had enjoyed returns of about 8 per cent annually over the past two years.

Stockspot is one of many robo-advisers — advice given by a computer instead of a human using a person’s details — helping Australians fatten their money by investing it in exchange-traded funds.

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Source: Getting rich: Australians use robo-advisers like Stockspot