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 26 May 2024

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  • 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.

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  • 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.

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  • 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.

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  • 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.

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  • 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.

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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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