Later this week the notes from the Reserve Bank's latest meeting will be released. Whilst investors will be looking out for any hints for future interest rate hikes, it seems unlikely that there will be anything positive in that regard in this release.
In fact, the way things stand at the moment, I would be very surprised if the Reserve Bank rose interest rates even once this year.
In light of this, I think savers should consider skipping savings accounts and look to put their money to work in the share market instead.
After all, with an average dividend yield of 4%, the yield on offer from the local market is vastly superior to anything you'll find from savings accounts or term deposits.
Three dividend shares which I think savers ought to consider are listed below. Here's why I like them:
Japara Healthcare Ltd (ASX: JHC)
Australia's population is ageing and demand for aged care services is expected to rise considerably over the next couple of decades. I think this puts aged care providers like Japara in a great position to deliver above-average earnings and dividend growth over the long-term. Right now Japara's shares provide a trailing partially franked 5.7% dividend.
Telstra Corporation Ltd (ASX: TLS)
Last week the telco giant turned in a reasonably positive half-year result that appeared to settle the nerves of a lot of investors. Management also confirmed its plan to pay a 22 cents per share dividend in FY 2018, equating to a fully franked 6.4% dividend at the current share price. I think Telstra would be a great option for income investors.
Westpac Banking Corp (ASX: WBC)
Due to a recent decline in its share price Westpac provides investors with a trailing fully franked 6.2% dividend at present. I think this makes it the best bank share to own thanks to the winning combination of value and yield. Especially when you consider that analysts at Deutsche Bank recently slapped a buy rating and $34.50 price target on its shares. This implies potential upside of over 13% for the bank's shares.
