Australians plan to splurge on travel in the next year despite restrictions

Three people walking on the edge of an ocean pool, discussion spending on travel in 2021.

A third of Australians are planning to dedicate a portion of their savings to travel over the next 12 months, according to July Australian Bureau of Statistics (ABS) figures.

The survey, conducted in June, found 54% of households expect to be able to save money over the coming year, while 26% are unsure of their savings status and 20% do not expect to make headway on savings goals.

Alongside travel plans, the most recent ABS Household Impacts of COVID-19 Survey found housing was another major spending area. 

Home renovations (16%) mortgage repayments (15%) and buying or building a new home (11%) were also at the top of the list of cash splashing plans.

In terms of income, the same report found 63% of respondents expect their income to remain the same in the year to come, while 11% anticipate a decrease. These numbers are relatively consistent with results from the previous quarter, and could help explain the recent reduction in retail spending.

A separate ABS dataset shows retail turnover fell 1.8% in June, with COVID-19 lockdowns unsurprisingly being tipped as the main driver of the drop-off in spending. 

The figure still stands as an increase on the same period for 2020, but is a significant reduction on the 2021 March quarter results which only saw a 0.1% drop.

Where to stash your savings in 2021

Each month Mozo takes a broad look at the savings landscape. Unfortunately, things haven’t been looking too shiny. 

As we saw in our August savings snapshot, the last year has been coloured by cuts to savings rates. Interestingly though, our latest term deposit snapshot noted the number of cuts to these less-accessible longer-term accounts has slowly begun dropping over the last few months, with rate increases on the rise.  

Despite overarching trends, there are options in both camps that will be more suitable for different kinds of savers, such as younger customers taking advantage of higher rates or those looking to lock away savings for longer periods and be rewarded. 

So, be sure to read up on the pros and cons of savings accounts versus term deposits and check out competitive rates across the board before deciding where to stash your cash.

Compare savings accounts - last updated 25 September 2021

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    Bonus Saver Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.10% p.a. (for $0 to $250,000)
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    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

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

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  • 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.

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    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.

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  • 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.

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