Could a savings account help to pull Gen Z out of debt?

Two Gen Z people are looking their computer as they open up a savings account

Gen Z are more financially challenged than other generations amidst the cost-of-living crisis, data from Moneysmart shows.

These findings highlight Gen Z’s average personal debt as $8,188, which is a total of $1,458 more than other generations (on average).

In fact, 28% of them are using Buy Now Pay Later (BNPL) products to pay for things in instalments rather than all at once, which suggests that younger people are facing obstacles when it comes to affordability.

Nevertheless, Gen Z has been deemed twice as likely as other generations to want to better manage their finances, according to research by ASIC’s Moneysmart program. 

A good savings account is always the first step. 

Improve your finances with a savings account

If you’re looking for ways to better your bank balance, a savings account may be something to consider. 

A good savings account typically has a high interest rate, allowing you to benefit from greater savings in the long run.

Take UniBank’s Target Saver, which currently offers a high interest rate of 5.50% p.a. if you satisfy conditions, including making no withdrawals from the account every month. Likewise, MOVE Bank’s Growth Saver option allows you to earn interest at 5.50% p.a. on balances up to $25,000 if you meet certain conditions such as depositing at least $200 each calendar month.

When picking out a savings account, doing your research and comparing your options is a smart way to get the best outcome for your needs. Just remember to watch for any fees that may come with your account, and whether the conditions you’ll need to meet are do-able based on your circumstances. 

Compare savings accounts

On the lookout for a savings account? Why not check out some of the best savings accounts that our experts at Mozo have tracked this month, or simply compare your top picks 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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  • 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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^See information about the Mozo Experts Choice Savings Account Awards

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