80% of Aussies fear economic impacts of coronavirus, finds Mozo research
New research from Mozo has revealed that 80% of Australians are worried about the economic impacts of the Coronavirus and that 1 in 5 have no savings and cannot afford to stop working.
The spread of the Coronavirus (COVID-19) has been making big news around the world since early January, but it wasn’t until the last few weeks that the effects of the global pandemic really hit home in Australia.
Now a Mozo survey has shown that 47% of workers in Australia would be unable to work remotely, should their place of business shut down, with a further 30% not eligible for paid sick leave. That’s a huge 7.6 million workers who could be left high and dry with no income for the foreseeable future.
Mozo Director, Kirsty Lamont said, “Mozo research has found that Coronavirus is driving a lot of economic worry right now, more so than rate cuts, the bushfires, a depressed retail sector and dropping unemployment. There are portions of Australians who are very vulnerable financially - those who have casual contracts, are unable to work remotely, aren’t eligible for sick leave, have dependents, or don’t have a savings fund.”
In fact, the survey showed that for more than 50% of Aussies, Coronavirus is viewed as the biggest threat to the economy, above all other concerns. The research also revealed that more women than men cannot work remotely and therefore could be more affected by a nationwide shutdown of businesses.
5 ways to protect your finances during COVID-19 shutdown
If ever there was a time to use a rainy day fund or think about starting one, it’s now. Here are five top tips from Mozo to protect your finances:
1. Think about refinancing your home loan
If you have a home loan and you’ve never refinanced or you haven’t for a while, then you might want to think about comparing refinance home loans to find a more competitive interest rate than the one you have right now.
Lamont commented, “Mozo research found that only one in four property owners have refinanced, so now is the perfect time to make the move with savings of up to $100k possible by opting for a competitive online lender compared to the big four banks. From the moment you pick up the phone to signing on the dotted line the average amount of time it takes to refinance is five days, meaning that you could pocket $21k a day in savings.”
Plus with the Reserve Bank of Australia looking to make an emergency cut to the cash rate, further home loan rate cuts could be on the horizon.
2. Get a high interest savings account
Contrary to popular belief, accumulating interest isn’t just for billionaire investors. With a more competitive savings rate you could earn yourself a tidy sum of interest to stash away for a rainy day. An extra $10 or $20 may not seem like much right now, but it could make all the difference if you find yourself stuck at home, running low on groceries.
2.00% p.a. is the highest ongoing savings rate available in the Mozo database right now, in comparison to a much lower 0.90% p.a. market average*.
3. Pay yourself first
You may have heard this one before, but sometimes the oldest tricks in the book are the most helpful. Set up a direct debit to transfer money from your everyday transaction account to your savings account on payday.
Just make sure that however much you transfer is realistic, you don’t want to have to dip into your savings later on because you find yourself short on cash. It might even be a good idea to create a budget for yourself, then you can figure out how much you have left over to shift into your savings after you’ve made any regular rent, mortgage, energy bills or grocery payments.
4. Keep track of your spending
Speaking of budgets, try to keep track of what you’re spending. With more and more banking apps offering ways to track your spending these days, keeping on top of what you’re using your money for is easier than it has ever been.
You could even download one of these seven budget and savings apps, to give you more of an idea of what unnecessary items you might be spending money on and where you could be cutting back.
5. Set yourself a goal
Set yourself a tangible goal and a timeframe to reach it in. For instance, you might want to save $5,000 over 6 months. Having a set amount to save over a set period of time will give you an idea of how much you need to put away either each week, fortnight or month.
Plus reaching the halfway or even quarter way point might spur you on to the finish line! You might even wind up saving more. Of course before you get ahead of yourself, start by setting up a savings plan.
Other resources to help deal with the financial impacts of Coronavirus:
- Guide to Australian banks’ emergency Coronavirus relief packages
- What the coronavirus stimulus package will mean for Aussie small businesses
- Are you covered for Coronavirus under your credit card travel insurance?
- Keeping up with the Coronavirus
Feeling inspired to rethink your savings account? Why not check out Mozo’s savings account comparison page to have a look at what is on offer in Australia right now, or scroll down to see what high interest savings account you could be stashing your cash in.
Compare high interest savings accounts - last updated February 27, 2021
Bonus Saver Account
Maximum rate
standard interest rate
Govt Deposit Guarantee
1.20% p.a. (for $0 to $250,000)0.10% p.a.(for $0 and over)Yes up to $250,000Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Everyday or Glide transaction accounts.
Winner of a Mozo Experts Choice Award 2021 in the Regular Saver category.^ No monthly account fees and no minimum balance requirements.
CompareCompareBonus Saver Account
Winner of a Mozo Experts Choice Award 2021 in the Regular Saver category.^ No monthly account fees and no minimum balance requirements.
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Everyday or Glide transaction accounts.
- Access
- BPay, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read our Mozo Review to learn more about the Bonus Saver Account
Serious Saver
Maximum rate
standard interest rate
Govt Deposit Guarantee
0.30% p.a. (for $0 to $1,000,000)0.15% p.a.(for $0 and over)Yes up to $250,000No withdrawals in the month. Bonus rate for first 4 months, reverting to 0.15% rate after*
$0 monthly account fee. Link to any Australian bank account.
CompareCompareSerious Saver
$0 monthly account fee. Link to any Australian bank account.
- account fee per month
- $0.00
- Maximum rate conditions
- No withdrawals in the month. Bonus rate for first 4 months, reverting to 0.15% rate after*
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- -
Read our Mozo Review to learn more about the Serious Saver
Flexi Saver
Maximum rate
standard interest rate
Govt Deposit Guarantee
0.25% p.a. (for $0 to $5,000,000)0.05% p.a.(for $0 to $5,000,000)Yes up to $250,000Increase balance by at least $300 in the month
No upfront or ongoing fees. Unlimited free transactions. Great for regular contributions.
CompareCompareFlexi Saver
No upfront or ongoing fees. Unlimited free transactions. Great for regular contributions.
- account fee per month
- $0.00
- Maximum rate conditions
- Increase balance by at least $300 in the month (excluding interest)
- Access
- BPay, Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
Read our Mozo Review to learn more about the Flexi Saver
Online Saver
Maximum rate
standard interest rate
Govt Deposit Guarantee
1.10% p.a. (for $0 to $500,000)0.35% p.a.(for $0 and over)Yes up to $250,000Bonus rate for the first 4 months from account opening
No account keeping fees. No minimum balance required. Unlimited phone and internet transactions.
CompareCompareOnline Saver
No account keeping fees. No minimum balance required. Unlimited phone and internet transactions.
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate for the first 4 months from account opening
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account.
Read our Mozo Review to learn more about the Online Saver
Fast Track Saver Account
Maximum rate
standard interest rate
Govt Deposit Guarantee
1.05% p.a. (for $1 to $250,000)0.05% p.a.(for $1 and over)Yes up to $250,000Ongoing bonus rate applied if in the previous month $1,000 or more is credited to the linked Day2Day Plus account and 5 eligible transactions are made by the linked account.
Earn 1.05% p.a. Bonus Interest in the following month on your Fast Track Saver Account balance. Earn Bonus Interest on your savings, with no minimum balance required.
CompareCompareFast Track Saver Account
Earn 1.05% p.a. Bonus Interest in the following month on your Fast Track Saver Account balance. Earn Bonus Interest on your savings, with no minimum balance required.
- account fee per month
- $0.00
- Maximum rate conditions
- Ongoing bonus rate applied if in the previous month $1,000 or more is credited to the linked Day2Day Plus account and 5 eligible transactions are made by the linked account.
- Access
- BPay, Branch access, Internet banking
- Minimum balance
- $1.00
- Other restrictions
- Bonus interest rate criteria is effective from 1 February 2020.
Read our Mozo Review to learn more about the Fast Track Saver Account
^See information about the Mozo Experts Choice Savings Accounts Awards
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