Most of us keep our cash in banks. There may still be the odd few that stuff it under a mattress and then there are the savvy few who actively invest. If you're part of the former, you should know what the upside or downside is to having cash in your bank.

What does your annual return on your bank account look like? You don't know? Then it's time to find out whether or not your savings are actually earning interest at a rate worth maintaining.

You can't handle the (mediocre) truth

The lowest returning place to store your money is often a bank deposit or a cash account with a bank. Banks generally pay interest at the lowest rate possible so as to maximise their profits. Right now, that means you're probably not getting much of a return at all on your bundle of bucks.

A better place to store your cents

There are a couple of higher returning alternatives than the standard old bank deposit. If you're the sort of saver who will happily pop your money away and leave it be then you can lock in a fixed rate. This way you could earn a bit more interest. Alternatively, you might look at solutions that invest your money more energetically. Perhaps an active cash or higher income solution that takes more risk and holds a range of interest-bearing investments.

Research the rate

Alternate funds, like term deposits, active cash or higher income solutions, can deliver returns that are distinctly better than conventional bank deposit accounts and each has a different risk profile. In fact there are some targets returns that are 1-3%* above the RBA cash rate. On the share market side of things, a protected equities fund aims for strong long-term returns that are around 5%* above the RBA cash rate. These are the sorts of rates worth looking into..