Mozo Money Moves: Unlocking higher savings, smarter investing strategies, super gains and generational spending trends

Gen Z in Sydney, Australia

Welcome to Mozo Money Moves, your essential guide to navigating the dynamic world of personal finance. In this edition, we unpack some of the most significant trends and opportunities shaping how Australians save, invest, and spend their money. From competitive savings rates designed to boost your cash to a timeless investing strategy making a comeback, we've got you covered.

We'll delve into the latest offerings for high-interest savings accounts, including a new welcome rate that's catching the eye of savers. For investors, we explore why more Australians are rediscovering the power of dollar-cost averaging amidst market volatility. Superannuation holders will be pleased to hear about another year of strong returns, highlighting the benefits of a long-term approach.

Furthermore, we examine how understanding your Loan-to-Value Ratio (LVR) could give you a significant edge when refinancing your home loan. We also provide insights into the best places to stash your home deposit, depending on your buying timeline and risk appetite.

Finally, we take a closer look at the evolving spending habits of Gen Z, revealing their preference for value-driven purchases and debit card usage over credit. Read on to get the full rundown on these crucial money moves.

ubank entices high-interest seeking savers

ubank has launched a new welcome savings rate of 5.00% p.a. for new customers – one of the highest introductory rates currently available in Mozo’s database. The variable rate applies to balances up to $250,000 and is available for the first four months after opening a Save account.

This adds to a growing list of short-term offers designed to attract savers. The current highest rate in Mozo’s database sits at 5.15% p.a., also available on a limited-time introductory basis from a competing bank.

After the introductory period ends, ubank’s Save account reverts to an ongoing bonus rate of 4.60% p.a. for balances up to $1 million. However, there are certain conditions that must be met to achieve this rate or you’ll receive no interest at all. 

To earn the highest rate you must: 

  • Have a ubank Spend account linked
  • Deposit at least $500 from an external (non-ubank) source into any Spend, Bills or Save account by 11:30pm (Sydney time) on the last day of the month

With many savings accounts seeing downward rate revisions in recent months, short-term offers like these may suit Australians who are actively managing their cash for maximum return.

The timeless investing rule Aussies are rediscovering

More Australians are embracing dollar-cost averaging – a simple but effective strategy that involves investing a fixed amount regularly, regardless of market conditions.

In simple terms, this involves investing a fixed sum of money into shares at regular intervals, regardless of the price. The idea is that by sticking to a strict investment schedule, you can reduce your average cost per share over time.

According to HSBC’s latest global investor survey, more than half of Australian investors said they’re leaning more heavily on this approach. The main draw? Reducing the stress and risk of trying to time the market.

This analysis highlights why dollar cost averaging is gaining traction: it encourages discipline, removes emotion from the equation, and can lower the average cost per unit over time. As share markets experience short-term volatility, Aussies are opting for consistency over speculation.

The trend reflects a broader shift toward long-term thinking, particularly among younger investors – many of whom are balancing volatile returns with rising living costs.

Super delivers another year of strong returns

Australians with money in superannuation are enjoying back-to-back years of solid gains, with median balanced options delivering an estimated return of 10.1% for the financial year ending 30 June 2025, according to SuperRatings.

This reflects strong performance across domestic and global equities. SuperRatings notes that despite persistent inflation and interest rate uncertainty, most funds delivered positive results through the year.

As you can see in the chart below, there were some notable ups and downs in the ASX, mirroring what’s going on globally. Even so, super funds came through these fluctuations successfully. This was thanks to strong performances in share markets, especially in tech and financials, which helped deliver strong positive returns for the full year.

“We saw exceptional volatility in returns over the year, particularly following the announcement of US tariffs in early 2025, however the benefit of staying the course was once again proven as a quick rebound has resulted in the third double digit return year over the past decade,” SuperRatings executive director Kirby Rappell said.

The result is a timely reminder that staying invested over the long haul – even during uncertain times – can pay off when markets recover.

Why your LVR could boost your negotiating power

Homeowners looking to refinance could gain the upper hand by understanding their loan-to-value ratio (LVR). According to Mozo research, borrowers with lower LVRs generally have more negotiating power and are often offered more competitive interest rates.

The average variable rate for a 90% LVR is 6.41% p.a., according to Mozo’s database. While the average for an LVR of 70% is 6.12% p.a. – that’s 29 basis points lower.

Depending on the size of your loan and how many years you’ve got to pay it off, a rate cut of 0.29% could reduce your monthly repayments and help you pay less interest if you were to refinance.

Use our mortgage repayments calculator to work out how much you’d pay each month depending on your interest rate. See below for examples of monthly repayment amounts, based on average variable interest rates at different LVR levels.

LVR Average variable rate (p.a.) Monthly repayments
60%
6.08%
$3,246
70%
6.12%
$3,258
80%
6.16%
$3,271
90%
6.41%
$3,348

Source: Mozo database. Average variable rates for owner occupier, principal and interest home loans, paid over a 25-year loan term. $500,000 loan amount. Accurate as at 17 July, 2025.

These figures show a clear price gradient: the higher your equity, the more attractive you may be to lenders. It’s particularly important for refinancers with growing property equity to reassess their LVR and see if they now qualify for sharper rates – especially with the refinancing market slowing and lenders hungry for quality business.

Parking your home deposit? Here’s where to stash it

With savings rates edging down and property prices still on the move, home buyers sitting on a deposit may want to make their cash work harder.

Mozo’s latest breakdown highlights three key options for where to stash a home deposit:

  1. High interest savings accounts – Great for short-term access and flexibility. Some banks are still offering rates above 5% p.a., though you’ll likely need to meet monthly conditions to earn the full rate. These accounts are ideal if you're planning to buy soon and need your funds readily available.
  2. Term deposits – If your property purchase is still a few months away and you’re looking for a guaranteed return, term deposits can offer stability. While rates are often lower than the highest savings accounts, they can be a useful place to lock away funds for 3–12 months if you don’t need immediate access. A laddering strategy may also be a sensible option to provide greater access to your deposit.
  3. Longer-term or strategic options – For buyers with a longer horizon or more complex goals, there are a few other avenues to consider:
    • Offset accounts: If you've already secured pre-approval or a home loan, parking your deposit in an offset account can reduce the interest charged on your mortgage while keeping funds accessible.
    • ETFs: For those not in a rush to buy, investing in diversified exchange-traded funds might offer stronger returns – though it comes with the risk of market volatility.
    • Government schemes: First-home buyers may also be eligible for the First Home Super Saver Scheme (FHSSS), which allows voluntary contributions to be withdrawn from super for a future property purchase. This strategy could offer tax benefits and potentially stronger returns than standard savings accounts, depending on how it's managed.

Each of these options serves a different type of buyer, so understanding your timeline, risk tolerance, and goals is key to choosing the right home for your deposit.

Gen Z ditches credit for value-driven spending

Gen Z Aussies are proving to be savvy online shoppers, favouring debit cards over credit and leaning into features that deliver real value. According to the 2025 ANZ Online Shopping Report by BigCommerce, more than half of 18-24 year olds prefer to pay with debit when shopping online – making them the most credit-averse generation. 

Visa credit card usage has fallen 8% over the past two years, while Buy Now Pay Later services remain popular among millennials.

The report also revealed that shipping fees are a major dealbreaker, with 97% of shoppers saying they’ve abandoned carts due to high delivery costs. While free shipping is still the top loyalty incentive, more Aussies are willing to pay for faster delivery on small items – though the average acceptable fee for large items has plunged to $73.98, down from $119.49 in 2023.

When it comes to online shopping features, flashy tech like virtual try-ons and chatbots are falling out of favour. Instead, shoppers – especially younger ones – are gravitating towards practical tools like price tracking and personalised recommendations to help stretch their budgets further.

Gen Z splurges less often but spends more

While Gen Z may be known for value-driven habits, new data suggests they’re also confident spenders when it counts. Bankwest’s latest Spend Trends report shows that Gen Z customers in WA increased both the volume and value of their transactions year-on-year – with average spend per transaction up 9%, matching their 9% rise in transaction volume.

Interestingly, this came as the overall number of customers spending, across all generations, fell 6.1% year-on-year, signalling broader cost-of-living caution. But Gen Z bucked that trend, not just spending more often, but making larger individual purchases compared to last year.

Where are they shopping? The biggest year-on-year spike in Gen Z customer activity was at travel agencies (+54%), while their average transaction value surged 37% in the auto rental category – more likely reflecting occasional big-ticket spending than everyday use.

This suggests that while young Aussies are mindful of budgeting, they’re still willing to open the wallet for meaningful purchases – whether that’s a holiday, a new gadget, or convenience-led services. It's a sign that Gen Z is balancing caution with lifestyle, and increasingly prioritising experience and efficiency when it comes to spending.

Term deposit rates slashed following RBA hold

At least 28 banks in Mozo's database have reduced their term deposit rates since the Reserve Bank of Australia (RBA) decided to hold the official cash rate steady at 3.85% earlier this month. Big players like NAB, Westpac and ANZ are leading the charge, signalling banks are bracing for rate cuts down the track.

This wave of rate drops – from the majors to the smaller players – looks like a pre-emptive move to manage funding costs ahead of what’s expected to be a continued RBA easing cycle. 

“When you see 17 banks chopping term deposit rates in just one week, it’s no accident – it’s a clear sign,” says Rachel Wastell, Mozo’s personal finance expert, highlighting how the market is already looking ahead.

For savers, this means the days of locking in juicy term deposit returns are getting slimmer, which will sting those relying on interest income.

Here’s a quick look at some recent cuts from the Big Four banks:

Bank Term Old Rate New Rate Change (bps)
NAB
7 months
4.00%
3.80%
-20
Westpac
1 year
3.75%
3.55%
-20
ANZ 8 months 3.90% 3.80% -10

This proactive trimming across the sector shows that even though the RBA has hit pause, banks are already pricing in a looser cash rate environment.


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