ME: 34% of income-affected Aussies saving more than before COVID-19
Over a third of Australians are putting more money into savings than they did before the Coronavirus pandemic, despite having had their incomes reduced.
That’s according to research released as part of ME’s new COVID-19 Financial Sentiment Snapshot, which included a survey of 1,000 Australians completed last week.
34% of respondents to the survey whose incomes have been affected by Coronavirus reported to have increased the amount they were saving compared to before the pandemic, while the figure rose to 48% among those whose incomes have either been unaffected or increased.
“Many households tend to put money aside as soon as they feel financially uncertain,” said ME Money Expert, Mathew Read. Having a financial buffer is a good idea as it provides peace of mind when it comes to paying bills, essentials, rent or a home loan.”
“One saving grace of staying at home is that we’re spending less on activities such as going out to dinner or taking holidays. For some, the lockdown is forcing us to save.”
While the majority of respondents to the COVID-19 Financial Sentiment Snapshot survey reported that their incomes have either stayed the same (56%) or increased (11%) since the COVID-19 pandemic began, a considerable 33% have seen their income decrease.
Even more Australians felt that they were likely to feel the effects of the outbreak in months to come, with 44% bracing for a future whack to their household incomes.
Compare savings accounts - last updated 27 April 2024
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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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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.
- Maximum rate
- 5.75% p.a. (for $0 to $250,001)
- standard interest rate
- 4.40% p.a.(for $0 to $250,001)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate for the first 4 months from account opening, reverting to standard variable rate. Rate shown is for Personal customers and is subject to change. Different rates apply to Business/SMSF customers.
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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.
CompareCompareReward Saver Account
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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- 5.25% p.a. (for $0 to $1,000,000)
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- 0% p.a.(for $0 and over)
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- Yes up to $250,000
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Read our Mozo Review to learn more about the IMB Bank Reward Saver Account
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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.
CompareCompareAMP 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.
- Maximum rate
- 5.40% p.a. (for $0 to $250,000)
- standard interest rate
- 1.20% p.a.(for $0 to $5,000,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Ongoing total variable bonus rate of up to 5.40% per annum applies if customers deposit $1,000 in the previous month. Available only on balances up to $250,000.
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- Phone banking, Internet banking
- Minimum balance
- $0.00
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- Ongoing total variable bonus rate up to 5.40% p.a. is earned on the balance the month after you deposit $1,000 and is paid the following month, on balances up to $250k. Max balance per customer name is $5 million.
Read our Mozo Review to learn more about the AMP Bank AMP Saver Account
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How are financially-hit households saving money?
As part of the survey, ME also asked respondents who have experienced a fall in income to share the steps they have taken to save money.
By far and away the most popular method among respondents has been to cut out any unnecessary expenses (72%), followed by seeking some form of government assistance (29%) such as individual support payments or small business assistance.
A quarter (24%) of affected households reported to drafting up a new personal budget, 19% said they had put more money aside to create an emergency fund and a further 19% had either switched or shopped around for new service providers (e.g. energy and internet) or financial products (e.g. savings accounts and home loans).
“If you have a little extra time on your hands at home, take advantage of it and review your finances and personal budget. It pays to focus on what you can control and taking stock of where your money is going now may really help your financial wellbeing in the future,” said Read.
RELATED: How to take financial action during self-isolation and maximise your savings
Is it time to make the switch yourself to a more rewarding savings account? Check out some of the hot offers in the table further up the page, or look through an even greater range of offers with the latest rates over on the Mozo savings account comparison hub.
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