Intense cost of living pressures cause rising distress among Aussies ahead of RBA decision

Collage of a two-faced woman.

New data reveals that nearly half (46%) of Australians are experiencing ‘elevated distress’ due to cost of living pressure, particularly those who are “middle-age, middle-wage”. A further 23% report growing distress over housing affordability, up 2% from the December quarter. 

As the Reserve Bank deliberates its next cash rate decision today, calls for the central bank to consider “human, not just economic, wellbeing” have renewed.

Despite determination to save money, rate hikes leave many Aussies behind

Collage of a distressed woman.

RBA governor Philip Lowe has maintained that unchecked inflation’s ‘corrosive’ effect hurts vulnerable Australians more than rate hikes. 

In this, he argues, the central bank’s aggressive monetary policy may hurt but will ultimately safeguard the long-term welfare of Australians, since it theoretically ensures the smoothest dip in the business cycle while avoiding a recession

However, Suicide Prevention Australia – who supplied the data in its latest quarterly Community Tracker report – urged the RBA to consider the “human face” behind today’s interest rate decision. 

“We’re deeply concerned about the impact that [the] cost of living is having on Australians,” states CEO Nieves Murray.

“When we are talking about suicide, it’s important to remember that every number represents a human life and a cascade of grief and healing across the impacted communities.”

Suicide Prevention Australia’s data matches similar findings from the new NAB Australian Wellbeing Survey, which found that half of Aussies (51%) are concerned by the cost of living. 

“Australians are more engaged with their finances than they have been for a long time, in part due to their concerns around increased living costs,” says NAB personal banking executive Mark Baylis.

But despite the increased attention and effort to build up their savings, 20% of Aussies told NAB they have fewer savings now than they did in December. 

Both data sets serve as a timely reminder that mental health and money can be closely correlated. 

Lifeline 13 11 14. Mental health resources.

Compare high interest savings accounts - last updated 28 May 2024

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    High Interest Savings Account

    5.75% p.a. (for $0 to $250,001)

    4.40% p.a.(for $0 to $250,001)

    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account. No Account keeping fees. No minimum balance. Support Aussie farmers with every dollar you save.

    Compare
    Details
  • Savings Account

    5.35% p.a. (for $0 to $250,000)

    4.75% p.a.(for $0 to $1,000,000)

    Yes up to $250,000

    Bonus variable rate is available for the first four months.

    Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.

    Compare
    Details
  • Mozo Expert Choice Badge
    AMP Saver Account

    5.40% p.a. (for $0 to $250,000)

    1.20% p.a.(for $0 to $5,000,000)

    Yes up to $250,000

    Enjoy a bonus rate when you deposit at least $1000 per month with the AMP Saver Account.

    No account fees. Unlimited transactions when linked to an AMP Bank transaction account. Easy online access to your money. Option to link your savings account to an everyday transaction account. 2024 Mozo Experts Choice Award winner.

    Compare
    Details
  • High Interest Save Account

    5.10% p.a. (for $0 to $250,000)

    0.10% p.a.(for $0 and over)

    Yes up to $250,000

    Deposit at least $200 to either Spend, Bills or Save account from an external source each month.

    No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.

    Compare
    Details
  • Reward Saver Account

    5.25% p.a. (for $0 to $1,000,000)

    0% p.a.(for $0 and over)

    Yes up to $250,000

    Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.

    Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.

    Compare
    Details

^See information about the Mozo Experts Choice Savings Account Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.