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 - last updated 4 March 2024

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • 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
  • 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 . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.

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  • Hero Saver

    4.60% p.a. (for $0 to $250,001)

    1.00% p.a.(for $0 to $5,000,001)

    Yes up to $250,000

    Minimum deposit of $200 and no withdrawals in the month.

    Earn a generous variable rate on balances up to $250,001 each month you deposit at least $200 (excluding interest) on or before the last business day each month and make no withdrawals during the month. $0 account maintenance fees. Create a goal, set up regular deposits and track your progress on the Bankwest app.

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  • Mozo Expert Choice Badge
    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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    Details

^See information about the Mozo Experts Choice Savings Account Awards

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