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 - last updated 2 May 2024

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • 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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  • 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
  • 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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  • Mozo Expert Choice Badge
    AMP Saver Account

    5.40% p.a. (for $0 to $250,000)

    1.20% p.a.(for $0 to $5,000,000)

    Yes up to $250,000

    Enjoy a bonus rate when you deposit at least $1000 per month with the AMP Saver Account.

    No account fees. Unlimited transactions when linked to an AMP Bank transaction account. Easy online access to your money. Option to link your savings account to an everyday transaction account. 2024 Mozo Experts Choice Award winner.

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^See information about the Mozo Experts Choice Savings Account Awards

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