As retail spending rises, should you double down on your savings?

A red image of a ball on top of a model block staircase as Aussies focus on growing their savings

Australian shoppers across the country spent a total of more than $35.4 billion in August, data from the Australian Bureau of Statistics (ABS) shows. 

Interestingly enough, cafes, restaurants, and takeaway spending have gone up by 8%. 

At the same time, the sale of household goods in retail was lower in August compared to the previous month with a drop of $24.6 million in spending. 

This may be a sign that consumer confidence is up, with Aussies being more relaxed when it comes to discretionary spending. 

However, it’s possible the Reserve Bank of Australia (RBA) will initiate a rate hike next month, which suggests spending power may become a little tighter for some. 

Earn interest on your savings

Man walks through a door of introspection and thinks about the interest rates on his savings account

To get ahead of a potential rate hike, perhaps it’s a good idea to look at your savings account to find out whether you’re still getting the best interest rate for your circumstances. 

Currently, Mozo’s database shows some savings providers offering competitive interest rates as high as 5.50%. There are some conditions you’ll have to meet though, like making a minimum deposit each month, or keeping your balance higher than the previous month.

Take this scenario, for instance:

If you start off with $1,000 in your savings account and deposit $300 on a weekly basis for 3 years at an interest rate of 5.5% p.a., you could end up with a ballpark figure of $52,201. Of that amount, $4,239 is money earned in interest - not bad for some passive income. 

When picking out a savings account, it’s worth shopping around to find one that offers a good rate of interest and has features that work well for you. 

Compare savings accounts

Not sure how to choose a savings account? Have a look at some of the best savings accounts that our experts at Mozo have tracked this month, or compare options below. 

Savings accounts comparison table

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 274 savings accounts.
Last updated 25 July 2024 Important disclosures
  • 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.

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    Details
  • Mozo Expert Choice Badge
    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.^

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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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    Details
  • 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.

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    Details

^See information about the Mozo Experts Choice Savings Account Awards

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