AMP report finds 1 in 5 Aussies have less than $250 in savings

New research from AMP paints a pretty dire picture of Aussies’ personal finances. According to the study, 1 in 5 Australians have less than $250 in savings. And even more distressing, two thirds of that group have no savings at all. 

AMP CEO, Sally Bruce points to increased costs of living, stagnant wages, and a dismal interest rate environment as key reasons why Australians are having so much difficulty saving their money.

“Our research is reflective of national data, which shows a decline in the savings rate since the GFC. A number of factors have contributed to this including rising housing wealth until recently at a time of weak wages growth and ongoing increases in the cost of living,” she said.

“And with interest rates at record lows it’s little wonder Australians don’t have anything spare to put away, and what they do have saved is only growing slowly.”

Many Aussies in the dark about interest rates

While the report acknowledges the harsh financial realities many face, it underscores the need for Australians to better equip themselves to make informed decisions about their finances

The push to improve financial literacy in children might be underway, but there are still age groups for whom such educational measures arrived too late. 

And the result is that many of us are completely in the dark about our finances. As the report tells us, 26% of Australians don’t have a savings account. And among those who do, 43% don’t know their interest rate. 

Almost half (44%) of Aussies acknowledge that a higher interest savings account would improve the state of their finances. 41% said a salary increase would do the job, while 29% said it came down to smarter financial habits.

As Ms Bruce puts it: “The more we can encourage Australians to take an interest in interest, the more they will be able to grow their wealth and reduce the impact of unexpected costs or afford the extra things in life they want.”

To that end, you might want to check out some of the high interest savings accounts on the market right now. Have a browse of the assortment below, and head over to our high interest savings account comparison page for a more in-depth look.

Savings account comparisons on Mozo - last updated 16 October 2021

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  • Boost Saver with Go Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.50% p.a. (for $0 to $250,000)
    0.10% p.a.(for $0 and over)
    Yes up to $250,000

    Intro bonus rate of 1.50% for first 3 months, reverting to 1.20% after. Deposit $2,000 each month and make 5 eligible payments from your Go Account. If you are between 18 and 25 deposit $1,000.

    Enjoy a savings account bundled with a spending account. No monthly fees. New customers can earn up to 5000 bonus Virgin Money points on purchases (conditions apply). Benefit together with a joint account

    Details
  • High Interest Savings Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.35% p.a. (for $0 to $250,001)
    0.25% p.a.(for $0 to $250,001)
    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    Kick start your savings with the 4 month introductory variable rate. No fees, no minimum balance, no minimum monthly deposit and no minimum term.

    Details
  • Grow Saver
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    0.65% p.a. (for $0 and over)
    0.10% p.a.(for $0 and over)
    Yes up to $250,000

    Make at least 1 deposit and no more than 1 withdrawal, including internal transfers or external payments.

    Earn a maximum interest rate of 0.65% per year. Pay no monthly fees. Set up in-app savings goals. Benefit with joint account options.

    Details
  • 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 $250,000

    Bonus rate for the first 4 months from account opening

    No account keeping fees. No minimum balance required. Unlimited phone and internet transactions.

    Details
  • Fast Track Starter Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    2.50% p.a. (for $1 to $10,000)
    0.05% p.a.(for $1 and over)
    Yes up to $250,000

    Ongoing bonus rate applied and 5 eligible transactions are made by the linked accountif in the previous month $200 or more is credited to the linked Day2Day Plus account.

    3.00 %P.A. Bonus Interest on balances up to $10,000 when the Bonus Criteria is met. Free withdrawals to your linked Day2Day Account while still earning Bonus Interest. Only available between the ages of 14 - 24 years.

    Details
  • 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 $250,000

    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.

    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.

    Details

And if you’re looking for ways to turn your finances around, there’s a lot you can do besides switching to a high interest savings account. Here are just a few to consider:

  • Set up automatic payments into your savings account.
  • Use a budget to keep track of where your money is going.
  • Review your phone, energy, and internet plans. You could save a lot of money by switching to a more affordable provider.
  • Consider giving up a vice. If you can do without that daily $5 coffee, you could save well over $1,000 each year.

^See information about the Mozo Experts Choice Savings Account Awards

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