Mozo guides

How much does the average Australian save?

Most of us have had to tighten our belts over the past couple of years, and keeping a healthy stash of savings is one of the ways you can keep your head above choppy financial waters. 

As a result, the average Australian saver has burnt through their cash quickly. In fact, our recent savings report found that 1 in 6 (16%) Aussies are putting their savings goals on hold. 

So what are savings balances looking like in Australia and what can we do to improve our situations?

The current state of savings in Australia

Recent reports and studies shed light on the savings habits of Australians. For example, the Australian Bureau of Statistics (ABS) September release of its Australian National Accounts stats gives us an idea of how much cash Aussies are putting away in comparison to previous years. 

The latest household savings-to-income ratio was recorded at 1.1% in September of last year, a far cry from its 24% high in June 2020 and the lowest it has been since 2007. And it’s unlikely this number has improved much of late, considering there was one more rate hike recorded after this figure in November. 

Mozo data on Aussie savings 

Our recent SOS Savings Report for 2024 found some interesting stats amongst savers. For instance, NSW residents had a higher average amount of savings than any other state or territory, largely driven by Sydneysiders who had saved on average a whopping $31,167. 

But location is only one side of the story. Savers of different age ranges have differing levels of success when it comes to reaching savings goals. 

As we can see, gen z and millennials struggle the most to meet their savings goals while Gen X and boomers are more successful than the Australian average. However, despite Gen Z struggling to achieve their goals, they are also the leading cohort that actually meets their goals, followed by Gen X and then millennials.    

What affects different savings rates

Beyond demographics, there are a couple of macro factors that affect how much people save. Some of these include: 

  • Economic conditions: These include inflation rates, interest rates, and economic growth which significantly impact how much people can save. For instance, higher interest rates often encourage saving, whereas economic downturns might necessitate dipping into savings.
  • Income levels: As highlighted by the NAB findings, your income level plays a role in how much savings you’re likely to have. Higher-income individuals can usually save more from more disposable income and a wider option of non-essential purchases they can cut. Meanwhile, lower incomes tend to result in lower levels of saving money.
  • Cost of living: The cost of living in Australia, particularly in major cities like Sydney and Melbourne, can greatly affect the ability to save. Rising housing costs, utility bills, and general expenses can take a substantial portion out of one's income.
  • Lifestyle choices: Personal priorities and lifestyle choices also dictate savings habits. For example, a trend towards more sustainable living might see individuals saving more by reducing consumption.

How do you get the most out of your savings?

Getting the most out of your savings doesn’t have to be entirely dependent on the cohort you belong to. There are some strategies to consider:

Savings patterns and goals

As noted in our savings report, younger Australians (particularly those in their 20s and early 30s) might have different savings patterns compared to older age groups. For instance, younger savers are usually focused on education or initial career stages and older individuals tend to save for retirement. So, make sure you have a clear idea what your financial goals are and that they meet your stage of life. 

Savings account type

Bonus rate savings accounts may see lower rates of withdrawal. This is because they generally require that you grow your account balance from the previous month. This means that if you withdraw, you could revert to a lower base rate which could motivate more frugal habits.

Finding a good savings interest rate, generally

Savings rates are varied, with many of the leading savings account providers competing to win your favour. It’s worth paying attention to this because even if you have a relatively small stash of cash to put away, an annual interest rate that’s above the average will help you grow your money. Consider that among some of the leading rates in the Mozo database right now are Macquarie Savings Account at 5.35% p.a, Rabobank High Interest Saving Account at 5.75% p.a. and ING Savings Maximiser at 5.50% p.a. 

Personal finance tools

Effective personal finance management is key to improving savings. Budgeting, round-ups (a handy savings app feature), and spending trackers can all be helpful tools that improve your financial situation.

How switching savings accounts can help you save more

Our savings report found that 69% of Australians have never switched their account and this means a significant portion of the population could be missing out on some great rates that providers  have on offer. 

Generally, the 1 in 6 Aussie savers that never switched said so because “it was too much effort” and only earned an average rate of 3.12% p.a. Meanwhile, Aussies who switched to get a higher interest rate had an average savings account rate of 4.56% p.a.4.56% p.a.

Getting your money to work for you is an important part of the savings journey. If you’re reliably getting a good savings interest rate, you’re growing your cash reserves and building a financial buffer. 

So how do you find the best savings account providers to switch to? This is where we come in. Mozo’s database has 199 savings accounts you can compare on our main hub pages. Alternatively, you can also check out some providers in the tables below… 

Savings account comparisons on Mozo - last updated 18 May 2024

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    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.

  • Savings Account

    5.35% p.a. (for $0 to $250,000)

    4.75% p.a.(for $0 to $1,000,000)

    Yes up to $250,000

    Bonus variable rate is available for the first four months.

    Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.

  • Mozo Expert Choice Badge
    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.

  • High Interest Save Account

    5.10% p.a. (for $0 to $250,000)

    0.10% p.a.(for $0 and over)

    Yes up to $250,000

    Deposit at least $200 to either Spend, Bills or Save account from an external source each month.

    No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.

  • 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.

  • Savings+Bonus

    5.00% p.a. (for $0 to $250,000)

    2.00% p.a.(for $0 to $250,000)

    Yes up to $250,000

    Minimum $100 monthly deposit and no withdrawals to earn bonus interest each month.

    Earn a generous interest rate on your at-call savings (T&Cs apply). Interest is calculated daily and paid to you monthly. A $5 monthly membership fee will not apply if your total account balances with First Option Bank exceed $1,000 or you have a credit card or loan with the bank.

  • Bonus Saver Account

    5.00% p.a. (for $0 to $250,000)

    0.05% p.a.(for $0 and over)

    Yes up to $250,000

    Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Glide transaction account.

    Start saving and earn interest with just a $20 deposit and make 5 eligible transactions each month. No fees or penalties for withdrawing money.


^See information about the Mozo Experts Choice Savings Account Awards

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Cameron Thomson
Cameron Thomson
Money writer

Cameron has a Bachelor of Creative Writing and History, and a background in broadcast media from his time at 2SER Radio. This diverse set of skills has informed his analytical yet creative approach to dissecting financial data and uncovering long-term trends in consumer finance. Cameron is RG146 certified for Generic Knowledge and keeps a keen eye on current and historical deposit and savings rates on the Mozo database. Cameron is also interested in tracking the investment space, particularly share trading platforms, to help Aussie consumers save and invest their money more wisely.