Although there is a lot of talk about interest rates rising in the not so distant future, I still feel it will be at least another 12 months or so before this happens.
Which means that the paltry interest rates on offer from savings accounts may well be here to stay for some time to come.
In light of this, if I had $10,000 in a savings account I would consider investing it in the local share market instead.
After all, according to Fidelity, the Australian share market has provided an average annual return of 9.1% over the last 30 years. That's far greater than anything you're ever likely to see from a savings account.
Here are three shares I would consider investing this money in:
Mantra Group Ltd (ASX: MTR)
With the tourism boom showing no sign of slowing thanks to a weaker Australian dollar and the rise of China's middle class, I believe this leading accommodation provider is positioned perfectly to deliver above-average earnings growth in the long-term. This should also allow the company to continue to grow its generous dividend, which currently provides a trailing fully franked 3.4% yield.
Webjet Limited (ASX: WEB)
With more and more consumers opting to make travel bookings online rather than at traditional bricks-and-mortar travel agents, it will come as little surprise to learn that this online travel agent reported a stunning 96% jump in half-year net profit after tax. Furthermore, all of the company's key segments experienced bookings growth and market share gains. I expect more of the same moving forward.
XERO FPO NZX (ASX: XRO)
This cloud-based accounting software provider for small to medium enterprises recently announced that it had broken through the 1 million subscribers mark. Whilst this is undoubtedly a significant milestone, I still believe there is a significant opportunity for the company to grow these numbers internationally. The US market in particular is one which I believe could provide it with a long runway for growth.
