Has 2020 made Australians better savers?
As it turns out, bus seats and public phone boxes aren’t the only things we’re looking at differently in 2020. With less places to go and less stuff to spend money on, it would seem that a lot of Aussies have really started to up their savings game since March.
In January, the average Pocketbook app user put away around $1,200. In July that figure rose to $2,600 - more than twice as much! Not to mention the fact that household net saving went up from $42 billion to $59.5 billion in the June quarter, according to the Australian Bureau of Statistics (ABS).
Research from the bureau shows that the average household savings ratio rose from 6% in March to an astounding 20% in June.
Changing attitudes
While these figures could be put down to temporary business closures and increased government support, they could also be attributed to changing attitudes towards saving.
Deloitte’s ongoing ‘State of the Consumer’ report shows that Australians have been spending less on things like dining out, shoes and clothing and electronics since March. Perhaps this willingness to save more and spend less on material goods shows a shift away from consumerism.
Staying ahead of the savings curve
We spoke with small business owner Xara about how her and her family have managed to save during the pandemic.
Xara says her and her husband’s attitude towards saving has definitely changed since March.
“Apps like Pocketbook have been really useful in helping me keep track of my expenses, which has been necessary given the future of my business is a little uncertain,” she says.
She adds that while her and her family don’t have a strict budget, they do try to put aside 30% of their income for a rainy day. “We have a loose “float” in our daily spending account that we try to stay above, so we don’t run into any trouble.”
Money motivations
In terms of motivation, “At the moment, my primary concern is next March when the government subsidies will stop - so my main motivation is saving as much money as possible while I have the support,” says Xara.
She adds that doing stuff like preparing lunches at home, rather than eating out has really helped to reduce the family’s outgoings.
Mindful spending, not stingy savings
Speaking of tracking outgoings, Xara says her family has learnt that you don’t have to overhaul your whole lifestyle to save more and that prioritising really helps.
“A smart attitude and useful tools like Pocketbook can really help you get there without the headache of spreadsheets,” she says. “We’re spending less on fast food and coffees and putting money away for a nice night out or investing in sports activities for our daughter.
“When things return to a more normal state, we’re keen to continue the good habits we’ve developed as a result of the pandemic.”
So, as you can see saving doesn’t have to be about going without or being stingy. It can simply be about choosing not to spend money on something you don’t need, or trying to be more thoughtful about your shopping overall.
Ready to start spending more mindfully? Head to Mozo’s compare savings accounts page to see what features come with different accounts to help you stash more cash for a rainy day.
Compare savings accounts - last updated January 23, 2021
Bonus Saver Account
Maximum rate
standard interest rate
Govt Deposit Guarantee
1.20% p.a. (for $0 to $250,000)0.10% p.a.(for $0 and over)Yes up to $250,000Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Everyday or Glide transaction accounts.
CompareCompareBonus Saver Account
Winner of a Mozo Experts Choice Award 2020 in the Regular Saver category.^ No monthly account fees and no minimum balance requirements.
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Everyday or Glide transaction accounts.
- Access
- BPay, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read our Mozo Review to learn more about the Bonus Saver Account
Serious Saver
Maximum rate
standard interest rate
Govt Deposit Guarantee
0.90% p.a. (for $0 to $1,000,000)0.05% p.a.(for $0 and over)Yes up to $250,000No withdrawals in the month. Bonus rate for first 4 months, reverting to 0.05% rate after*
CompareCompareSerious Saver
$0 monthly account fee. Link to any Australian bank account.
- account fee per month
- $0.00
- Maximum rate conditions
- No withdrawals in the month. Bonus rate for first 4 months, reverting to 0.05% rate after*
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- -
Read our Mozo Review to learn more about the Serious Saver
Saver Account
Maximum rate
standard interest rate
Govt Deposit Guarantee
1.10% p.a. (for $0 to $1,000,000)0% p.a.(for $0 and over)Yes up to $250,000Make 5 or more successful card purchases per calendar month using your Up debit card and digital wallets (ATM transactions excluded).
CompareCompareSaver Account
No monthly fees and earn up to 1.10% interest when you make 5 card purchases per calendar month. Automatically receive a $5 bonus into your new Up account when you use the special code MOZO5SAVE at sign up.
- account fee per month
- $0.00
- Maximum rate conditions
- Make 5 or more successful card purchases per calendar month using your Up debit card and digital wallets (ATM transactions excluded).
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Bank and saving account only accessible through iOS or Android app.
Read our Mozo Review to learn more about the Saver Account
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 $250,000Bonus rate for the first 4 months from account opening
CompareCompareOnline Saver
No account keeping fees. No minimum balance required. Unlimited phone and internet transactions.
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate for the first 4 months from account opening
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account.
Read our Mozo Review to learn more about the Online Saver
Flexi Saver
Maximum rate
standard interest rate
Govt Deposit Guarantee
0.85% p.a. (for $0 to $5,000,000)0.05% p.a.(for $0 to $5,000,000)Yes up to $250,000Increase balance by at least $300 in the month
CompareCompareFlexi Saver
No upfront or ongoing fees. Unlimited free transactions. Great for regular contributions.
- account fee per month
- $0.00
- Maximum rate conditions
- Increase balance by at least $300 in the month (excluding interest)
- Access
- BPay, Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
Read our Mozo Review to learn more about the Flexi Saver
^See information about the Mozo Experts Choice Savings Accounts Awards
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