Savings stress is up but Aussie savers forge on, NAB data shows

NAB Economics Research reports that while some Australians are practising more thoughtful spending, others are bolstering their savings accounts.

In the past year, the average balance of NAB’s high interest savings account grew by 25 per cent, according to the research.

NAB Personal Everyday Banking executive, Paul Riley says that despite the pressure from the higher cost of living, it’s interesting to see Australians are still determined to prioritise their savings.

“More than half of Australians are switching to less expensive products, doing their research before making a purchase or looking for a deal,” he added.

Why comparing savings rates matters

Mozo focuses on this part of the personal finance process, highlighting savings options in the Mozo database (below), so that you can begin to compare products. 

For example, Rabobank’s High Interest Savings Account is a Mozo Award winner, offering a 5.75% p.a. introductory interest rate for the first 4 months. (This rate reverts to 4.40% p.a. on balances below $250,000). 

The average intro rate in the Mozo database is 5.01% p.a.

In a similar way, ME Bank is a Mozo Award winner with its 5.55% p.a. bonus rate on its HomeME Savings Account on balances of up to $100,000. Savers need to deposit at least $2,000 into the linked SpendME Transaction Account every month and grow their savings balance regularly. If not, the rate drops to 0.55%.

The average bonus interest rate in the Mozo database is 4.61% p.a.

So as you can see, some simple comparison can really get you off on the right foot.

Will your savings balance grow in 2024-25?

The latest NAB economics data shows that while three-quarters of Australians are trying to save, they are also more pessimistic about their savings in the next 12 months.

Overall, a higher number now expect their savings to decrease than increase (-6%), reversing results from the previous quarter which showed the number of people who expected their savings to rise exceeded those expecting their savings to fall. 

Also, the net number of people in the higher income group expecting their savings to rise in the next 12 months fell sharply in the last quarter, while additionally, slightly more in the lower income group expect it to fall. 

Savings stress - or worrying about savings - also remained higher than income stress, in the most recent data. 

Notably, savings stress in the June quarter touched new survey highs for men and women in both the 18-29 and over 65 age groups. However, it’s women who tend to feel this stress more than men, according to the data, or perhaps it’s just that they’re more willing to admit it.

All savers need good info at hand. If you’re looking to save more money in 2024, better saving starts with a solid savings account. Get started with your savings comparison below.