Are we spending or saving more money? APRA data tells some of the story
![Australian $20 bills on a field of navy blue with a variable market graph line behind them](https://cdn.mozo.com.au/images/atwood/13413/GettyImages-1215276765%202.jpg)
The Australian Prudential Regulation Authority (APRA) has released new market insights this week that show changing Australian financial habits over January-February. While the global economy is understandably reeling from recent events, it's important to take stock of what’s going on at home, too, and what this means for the rest of 2022.
Home-ownership on the rise in a quietly changing property market
![An existential piggy bank caught between a cartoon white house lock and rising coins.](https://cdn.mozo.com.au/images/atwood/13413/rising%20housing%20costs%20prices.jpg)
Australian residential loans increased by $15.5 billion (0.5%) in January 2022, helped enormously by a $9.1 billion (0.7%) spike in home-ownership. Home investment loans also jumped by a further $2.4 billion (0.4%). Altogether, these numbers suggest that more and more Australians are taking out home loans and purchasing property.
Westpac cautions that the outlook seems mixed at best for first-time buyers hoping to break into the market, however, since many buyers are assuming house prices will continue to rise well into 2023. With sales rates still going strong, consumers are increasingly pessimistic about whether they can afford a house.
However, more houses than ever appear to be going on the market. If the number of prospective buyers dwindles or holds, we may see an important shift that could drive property prices down in the long-term.
Impact of omicron on Australian businesses
Despite being dogged by staffing shortages and supply-chain issues, Australian businesses have reasons for optimism. APRA reports that non-financial business lending increased by $4.6 billion (0.5%) over the course of January, which combined with the imminent easing of public health restrictions may result in better business confidence and spur growth down the track.
Credit card and loan debt going down
APRA has reported that credit card lending was down significantly - $1.2 million (or 4.2%) in January. This complements Corelogic’s earlier announcement that credit scores have increased across the board in 2021, indicating that Australians are tightening their belts and paying off their debts.
Consumer trends suggest credit cards have been falling out of favour during the pandemic, especially compared with other popular lending services like Buy Now Pay Later. Given this, it’s no surprise that debt has plunged as much as it has. (But, it’s important to keep in mind that most BNPL services require a card or some form of account, so there hasn’t been a departure from the concept of credit cards).
Other forms of household lending, such as fixed-term personal loans, declined by $0.3 billion (or 0.4%), which further supports the idea that Australians are conserving their expenses to boost their savings.
Households savings go up as Australians weather the storm
![A seesaw with a light piggy bank and heavy coin stacks.](https://cdn.mozo.com.au/images/atwood/13413/weighing%20up%20costs%20seesaw%20piggy%20bank.jpg)
Elevated financial pressures related to omicron, unemployment, and the rising cost of living have Australian consumers more than a little skittish.
According to Westpac, the Consumer Price Index (CPI) has undergone several bumps since mid-2021, worsened by surging demand and unreliable supply-chains. A higher CPI hits vulnerable groups like young people, renters, and retirees the hardest, since low-incomes tend to be the most sensitive to changes in the cost of living.
Given that many consumers also expect the Reserve Bank to hike variable interest rates on their mortgages, there’s understandably little incentive to splurge.
Instead, Australians are choosing to protect their finances by padding out their nest eggs. Household deposits increased by $6.5 billion (or 0.5%) over the course of January, further highlighting the desire to put money away for safekeeping in times of high uncertainty.
If you’re interested in boosting your savings, check out our top-rated saving accounts and tips on how to budget your money – even when you’re working from home. You can also compare savings accounts below.
Compare savings accounts
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Mozo experts choice awards won:
- High Interest Savings - 2024
Savings Maximiser
5.50% p.a. (for $0 to $100,000)
0.55% p.a.(for $0 and over)
Yes up to $250,000
For customers who have an Orange Everyday account, deposit $1000 into a personal ING account, make 5 eligible transactions and grow their nominated Savings Maximiser account each month.
Great variable rate every month when you grow your balance each month in addition to other eligibility criteria. No ING fees to pay. Save even more with ING Everyday Round Up. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
CompareCompareSavings Maximiser
Great variable rate every month when you grow your balance each month in addition to other eligibility criteria. No ING fees to pay. Save even more with ING Everyday Round Up. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
- Maximum rate
- 5.50% p.a. (for $0 to $100,000)
- standard interest rate
- 0.55% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- For customers who deposit $1000 from an external source into a personal ING account (excluding Orange One and Living Super), make 5 eligible transactions and grow their nominated Savings Maximiser account each month so there is more in the account at the end of the month than there was at the start of each month (excluding interest). The total bonus interest rate is available on balances up to $100,000 on one Savings Maximiser the next month after meeting eligibility.
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must be linked to an Orange Everyday transaction account to receive the bonus rate. Where multiple Savings Maximiser Accounts are held, the bonus rate is only applied to one nominated account.
Read our Mozo Review to learn more about the ING Savings Maximiser
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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.
CompareCompareReward Saver Account
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.
- Maximum rate
- 5.25% p.a. (for $0 to $1,000,000)
- standard interest rate
- 0% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- 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.
- Access
- ATM, EFTPOS, Visa Debit, Cheque book, BPay, Branch access, Phone banking, Internet banking, Bank@Post
- Minimum balance
- $0.00
- Other restrictions
- -
Read our Mozo Review to learn more about the IMB Bank Reward Saver Account
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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 4 months.
Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2024 Mozo Experts Choice Award winner.
CompareCompareSavings Account
Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2024 Mozo Experts Choice Award winner.
- Maximum rate
- 5.35% p.a. (for $0 to $250,000)
- standard interest rate
- 4.75% p.a.(for $0 to $1,000,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus variable rate is available for the first 4 months.
- Access
- BPay, Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must have a Macquarie Transaction Account to link with.
Read our Mozo Review to learn more about the Macquarie Savings Account
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Mozo experts choice awards won:
- Kick Start Savings - 2024
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.
CompareCompareHigh Interest Savings Account
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.
- Maximum rate
- 5.75% p.a. (for $0 to $250,001)
- standard interest rate
- 4.40% p.a.(for $0 to $250,001)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate for the first 4 months from account opening, reverting to standard variable rate. Rate shown is for Personal customers and is subject to change. Different rates apply to Business/SMSF customers.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read our Mozo Review to learn more about the Rabobank High Interest Savings Account
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Savings+Bonus
5.00% p.a. (for $0 to $250,000)
2.00% p.a.(for $0 to $250,000)
Yes up to $250,000
Minimum $100 monthly deposit and no withdrawals to earn bonus interest each month.
Earn a generous interest rate on your at-call savings (T&Cs apply). Interest is calculated daily and paid to you monthly. A $5 monthly membership fee will not apply if your total account balances with First Option Bank exceed $1,000 or you have a credit card or loan with the bank.
CompareCompareSavings+Bonus
Earn a generous interest rate on your at-call savings (T&Cs apply). Interest is calculated daily and paid to you monthly. A $5 monthly membership fee will not apply if your total account balances with First Option Bank exceed $1,000 or you have a credit card or loan with the bank.
- Maximum rate
- 5.00% p.a. (for $0 to $250,000)
- standard interest rate
- 2.00% p.a.(for $0 to $250,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $5.00
- Maximum rate conditions
- Minimum $100 monthly deposit and no withdrawals to earn bonus interest each month.
- Access
- -
- Minimum balance
- $1.00
- Other restrictions
- Must become a First Option Bank member to open an account.
Read our Mozo Review to learn more about the First Option Bank Savings+Bonus
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