Savings account news and advice

It’s no secret that Aussies love a bargain. But with family finances tighter than ever, saving on the fun stuff has never tasted sweeter. Whether it’s a free Whopper burger on your birthday or 60% off a pair of Apple Airpods, there are plenty of places to save. To make life easier, we’ve compiled the ultimate list of savvy ways you can snag discounts and freebies on everyday items, including food, drink, fashion and entertainment.

No matter the size of your savings bundle, you want to stash it in a savings account or term deposit where it can earn interest and grow. Right now, average rates for both types of deposit accounts are looking pretty grim. Mozo’s data shows the average ongoing savings interest rate is 0.82% p.a., with term deposits only just edging ahead at 0.95% p.a. for a one-year term.However, there are outliers with much more appealing numbers, especially in the savings account camp. So, you might want to start searching for a stellar rate. For example, young savers (18-29 year olds) can nab a market-leading 3.00% interest rate with the new Westpac Life account, while savers at any age will earn 1.65% p.a. on top of their savings with the ING Savings Maximiser (if criteria is met in both cases).But there is a catch: bonus interest that can be earned on these accounts caps out at $30,000 and $100,000 respectively. If you’ve got a large savings balance – perhaps you’ve recently earned money on the sale of a property or have received a redundancy payment – you’ll need to find a savings account that provides top features across your full balance. Check out a few potential contenders below which could cater to your higher balance needs. They’re all Mozo Expert Choice Award winners for 2020, so you know they’ve got our seal of approval.*

Nearly 90% of Australians have items that they either don’t want or don’t use in their homes, according to Gumtree’s 2019 Second Hand Economy report. The report shows that the average Aussie household is sitting on over $5,000 worth of unwanted goods that could be sold on.

If you’re an avid saver, then we don’t have to tell you that a year ago neobanks were your best bet for a decent return on your savings. However, recent Mozo analysis has shown that three neobanks have been forced to follow in the footsteps of the big four banks and slash their savings accounts rates. Over the last month, Mozo found that Up made the biggest reduction by shaving 25 basis points off its Saver Account (1.65%), meanwhile Xinja and 86 400 both cut 15 basis points off their savings products, bringing the rates down to 1.65% and 1.70%, respectively. “While the neobanks had managed to offer a glimmer of hope for the nation’s savers, these out of cycle cuts are a worrying sign,” said Mozo Director, Kirsty Lamont. “As they seek to attract new customers, we’ve come to expect the neobanks will buck the downward trend of the banks but with their savings rates also heading south they appear to be rejoining the pack.” According to the Mozo database, Australian Unity and MyState Bank currently offer the leading at-call savings rate of 1.75%, while the big banks severely lag behind with an average on-going savings rate of 0.54%, 121 basis points difference. Though there was some good news for younger Aussies looking to boost their savings balance, as Westpac launched its new Westpac Life account, boasting an impressive 3.00% for balances up to $30,000.

Given it’s one of the big banks, you might be thinking of stashing your hard-earned cash with ANZ. It has a few different savings accounts right now, whether you’re looking to build your nest egg or you’re just after a temporary place to park your money. But also keep in mind that ANZ is currently behind some competitors when it comes to interest rates, according to Mozo data.So how does ANZ compare to the rest of the market? Let’s take a closer look.

The Australian Prudential Regulation Authority (APRA) has estimated that a whopping $30 billion has been taken from superannuation accounts as a result of the Covid-19 pandemic. Whether Aussies are choosing to do this willing or because of little choice, it’s not painting a pretty picture for retirement. New research from Colonial First State has revealed that 23% of Aussies between the age of 30-65 believe they will have to delay retirement and work longer due to the pandemic. Almost half (45%) of respondents also confessed to either feeling scared or not financially confident about retiring. “The Coronavirus pandemic has significantly changed the world, not only socially but financially too. These are extremely challenging times for many people,” said Colonial First State’s general manager, Kelly Power.

86 400 is the latest bank to announce a hit to savers, with the neobank set to cut the maximum  interest rate on its Save Account from 1.70% to 1.60%. 

As headline rates dropped in July, Westpac made a surprise move. The big four bank introduced a new savings account: Westpac Life, which comes with an enticing 3.00% p.a. interest rate.

It’s been another bleak week for at-call deposit rates, as ING becomes the latest bank to take the axe to its high interest savings offer. Coming into effect Thursday, ING’s 15 basis point cut brings the maximum rate available on its Savings Maximiser account down to 1.65%.Still, to earn this new maximum rate, customers must fulfil a couple of monthly conditions: deposit at least $1,000 into their linked ING bank account and make at least five transactions using their ING debit card. This move comes just days after Xinja also reduced the maximum rate on its Stash savings account by 15 basis points to 1.65%.

Despite the recession and Covid-19, financial comfort for Aussie households has actually increased over the past few months. The question is, are these newfound comfort levels longlasting, or a sign of skating on thin ice?