UBank reveals: 48% of Aussies admit to one major bad savings habit

Most Aussies have a savings goal they’re working their way toward - whether it’s a bathroom renovation, a new set of wheels or a well-deserved end of year holiday.
But new research from UBank suggests we’re not all that good at it, with almost half of savers admitting to regularly dipping into their savings account for other spending needs.
According to UBank’s research while 62% of Aussies are saving for a big ticket purchase, like a car or holiday, three-quarters of those people are the ones dipping into their savings account on a regular basis.
The good news is that 11% of Aussies have a strict budget in place - but on the other hand, the same number admit to taking money out of their savings account each week.
To gain an insight into just how much of an impact dipping into your savings pile can have on reaching your savings goals, we’ve taken our Savings Goal Calculator for a spin. We found that if you’re starting from scratch, earning 2.80% interest and saving $400 from your paycheck every month, you could save enough to buy a $15,000 car in three years time.
But say you don’t stick to your plan, and instead dip into your savings and spend just $1,000 each year from it - less than $20 a week. All of a sudden, you’re more than $2,000 short of that new set of wheels. Not to mention, one of the conditions to score a bonus interest rate on many accounts is that you don’t make any withdrawals in the month.
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With Christmas approaching and Aussies writing out their gift lists, UBank CEO Lee Hatton has urged Aussies not to throw their long-term savings goal out the window in the silly season rush.
“We are heading into a time of year that sees increased financial pressures for many. From gifts to holidays to hosting Christmas get togethers, Australians are challenged with opening their pockets more than ever. For all those prone to double dipping, we are encouraging people not to lose sight of their long term financial goals,” Hatton said.
If you have a bad habit of spending your savings before you mean to, we’ve got a few tips to make sure your stash will continue to grow.
Sort out your budget. The best way to avoid dipping into your savings is to set out an airtight budget in the first place. If you find yourself regularly withdrawing from your savings account, it might be time to reevaluate your financial plan. This might involve cutting back unnecessary spending, or it might mean parking a smaller amount in your savings and leaving a little more in your everyday account. Just remember that if you do that, it will take longer to reach your big goals.
Get tech savvy. These days, you don’t have to shoulder the hard work of sticking to a savings plan alone! There are heaps of budgeting apps and banking products designed to help you do it. In fact, this week UBank customers will be able to manage their savings with a new and improved iOS app. Check out these seven must-have savings apps for more ideas on how to go digital with your finances.
Find a high interest savings account. Ok, let’s be honest: a great interest rate on your savings account is not going to mean the difference between being able to redo your kitchen and having to settle for a new toaster instead. But sticking $10,000 of savings in an account with a 2.80% return on your savings will net you an extra $279 in a year, compared to one with a measly 0.50%. So it’s well worth putting in the time to find a good account. Check out some of today’s hot options below.
High interest savings accounts - November 2017 - last updated 28 June 2022
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Future Saver Account - 14 to 35 years
Maximum rate
standard interest rate
Govt Deposit Guarantee
3.00% p.a. (for $0 to $50,001)0.05% p.a.(for $0 and over)Yes up to $250,000Transfer a minimum of $1,000 into your linked Everyday Account and make 5 eligible transactions. Bonus interest criteria waived for account holders 14-17 years of age.
Enjoy bonus interest each month when you meet the criteria. No monthly fees. Open an account in minutes. Open up to 9 accounts. Transaction round-up for faster saving. Personalised insights and goal tracking. For customers aged 14-35 years.
CompareCompareFuture Saver Account - 14 to 35 years
Enjoy bonus interest each month when you meet the criteria. No monthly fees. Open an account in minutes. Open up to 9 accounts. Transaction round-up for faster saving. Personalised insights and goal tracking. For customers aged 14-35 years.
- Maximum rate
- 3.00% p.a. (for $0 to $50,001)
- standard interest rate
- 0.05% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Ongoing bonus rate applied if in the previous month $1,000 or more is credited to the linked Everyday Account and 5 eligible transactions are made by the linked account. Bonus interest criteria waived for account holders 14-17 years of age.
- Access
- BPay, Branch access, Internet banking
- Minimum balance
- $1.00
- Other restrictions
Read our Mozo Review to learn more about the Future Saver Account - 14 to 35 years
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Mozo experts choice awards won:
- Regular Saver - 2022
- SMSF Savings Bank of the Year - 2022
AMP Saver Account
Maximum rate
standard interest rate
Govt Deposit Guarantee
1.35% p.a. (for $0 to $250,000)0.10% p.a.(for $0 to $5,000,000)Yes up to $250,000Minimum deposit of at least $250 in the previous month.
An ongoing total variable bonus rate of up to 1.35% per annum will apply each month if you deposit $250 in the previous month. Available only on balances up to $250,000. AMP Bank, winner of the Mozo Experts Choice Awards 2022 in the Savings category.^
CompareCompareAMP Saver Account
An ongoing total variable bonus rate of up to 1.35% per annum will apply each month if you deposit $250 in the previous month. Available only on balances up to $250,000. AMP Bank, winner of the Mozo Experts Choice Awards 2022 in the Savings category.^
- Maximum rate
- 1.35% p.a. (for $0 to $250,000)
- standard interest rate
- 0.10% 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 1.35% per annum applies if customers deposit $250 in the previous month. Available only on balances up to $250,000.
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Ongoing total variable bonus rate of 1.35% p.a. is earned on your account balance the month after you deposit $250 and is paid the following month. Available on balances up to $250,000. Maximum balance per customer name is $5,000,000.
Read our Mozo Review to learn more about the AMP Saver Account
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Mozo experts choice awards won:
- Kick Start Savings - 2022
High Interest Savings Account
Maximum rate
standard interest rate
Govt Deposit Guarantee
2.10% p.a. (for $0 to $250,001)1.00% p.a.(for $0 to $250,001)Yes up to $250,000Bonus 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.
CompareCompareHigh Interest Savings Account
Kick start your savings with the 4 month introductory variable rate. No fees, no minimum balance, no minimum monthly deposit and no minimum term.
- Maximum rate
- 2.10% p.a. (for $0 to $250,001)
- standard interest rate
- 1.00% 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.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read our Mozo Review to learn more about the High Interest Savings Account
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Featured Product
Mozo experts choice awards won:
- Regular Saver - 2022
Bonus Saver Account
Maximum rate
standard interest rate
Govt Deposit Guarantee
1.60% p.a. (for $0 to $250,000)0.05% 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 Glide transaction account.
Winner of a Mozo Experts Choice Award 2022 in the Regular Saver category. No monthly account fees. Available only on balances up to $250,000.
CompareCompareBonus Saver Account
Winner of a Mozo Experts Choice Award 2022 in the Regular Saver category. No monthly account fees. Available only on balances up to $250,000.
- Maximum rate
- 1.60% p.a. (for $0 to $250,000)
- standard interest rate
- 0.05% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- 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 Glide transaction account.
- 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 Bonus Saver Account
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Smart Saver Account
Maximum rate
standard interest rate
Govt Deposit Guarantee
2.00% p.a. (for $0 to $250,001)0.05% p.a.(for $0 and over)Yes up to $250,000Transfer a minimum of $1,000 into your linked Everyday Account and make 5 eligible transactions.
BOQ’s high interest savings account lets you enjoy bonus interest each month when you meet the criteria. No monthly fees. Link up to 9 eligible transaction accounts. Round up your transactions. For customers aged 36 years and over. Apply in minutes.
CompareCompareSmart Saver Account
BOQ’s high interest savings account lets you enjoy bonus interest each month when you meet the criteria. No monthly fees. Link up to 9 eligible transaction accounts. Round up your transactions. For customers aged 36 years and over. Apply in minutes.
- Maximum rate
- 2.00% p.a. (for $0 to $250,001)
- standard interest rate
- 0.05% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Ongoing bonus rate applied if in the previous month $1,000 or more is credited to the linked Everyday Account and 5 eligible transactions are made by the linked account.
- Access
- BPay, Branch access, Internet banking
- Minimum balance
- $1.00
- Other restrictions
Read our Mozo Review to learn more about the Smart Saver Account
^See information about the Mozo Experts Choice Savings Account Awards
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