Low rates cause Aussies to save less than 3 years ago

Latest figures from the RBA show Australians are saving 25% less than they were 3 years ago.

Collectively, we’re putting 26 billion in the bank each quarter, but that figure is down from almost 36 billion back in 2012, which equates to $535 less per quarter.

The data also shows the ratio of savings is also down from 11.2% to 8.5%, meaning we’re putting less of our disposable income towards savings.

Mozo Director, Kirsty Lamont says, “Low savings rates are likely to blame but it’s important not to abandon good savings habits altogether, households should aim to save 10% of their income regardless of rates.”

The average ongoing savings rate is now just 2.31%, down from 3.94% three years ago.

“A slow down in savings may also be down to savers pulling money out of interest earning accounts to pay down debt or dabble in the stockmarket.”  

“However, it’s important households have a buffer of savings set aside in case there’s a change in their circumstances, like an increase in interest rates,” said Lamont.

For example, if interest rates were to increase by 0.25% and lenders passed this on, mortgage paying households would need to find an extra $45 per month, based on a $300,000, 30 year mortgage.

Aside from how much we should be saving, Lamont suggests searching the savings account market for the highest paying account possible.

“There are a handful of special offers out there paying over and above the average, so look for an account paying 3% plus for your savings,” said Lamont.

Mozo’s top tips to ramp up savings include:

  • Divert any extra cash, like a tax return, towards savings
  • Build up a buffer of savings, ideally 10% of your income, create a separate account if need be
  • Set yourself a savings goal and timeline e.g. saving enough to cover the cost of Christmas
  • Look for a savings account paying an intro or bonus rate of interest

Savings account comparisons on Mozo - last updated 9 October 2021

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • Boost Saver with Go Account
    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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  • 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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  • Grow Saver
    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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  • High Interest Savings Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.35% p.a. (for $0 to $250,001)
    0.25% p.a.(for $0 to $250,001)
    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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  • Fast Track Starter Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    2.50% p.a. (for $1 to $10,000)
    0.05% p.a.(for $1 and over)
    Yes up to $250,000

    Ongoing bonus rate applied and 5 eligible transactions are made by the linked accountif in the previous month $200 or more is credited to the linked Day2Day Plus account.

    3.00 %P.A. Bonus Interest on balances up to $10,000 when the Bonus Criteria is met. Free withdrawals to your linked Day2Day Account while still earning Bonus Interest. Only available between the ages of 14 - 24 years.

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^See information about the Mozo Experts Choice Savings Account Awards

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