Christmas spending expected to take a dip, says IBISWorld
From smaller crowds to limited hugs, there's no doubt Christmas will look anything but traditional this year. And according to new research from market researcher, IBISWorld, Aussies aren’t looking to spend big either this festive season.
IBISWorld found that Christmas retail spending is expected to decline across certain areas, such as electronic goods (-2.7%), pharmaceutical and cosmetic goods (-1.5) and department stores (-1%).
“Although many households are likely to receive a cash injection from the recent Federal Budget, there is a high likelihood that these funds will be saved rather than spent, providing little help to the ailing retail sector”, said IBISWorld senior industry analyst, Yin Yeoh.
“Consumer electronics retailing is expected to be 2.7% lower this December, relative to last Christmas. Department store turnover is expected to be 1.0% lower, at $2.8 billion.”
But while we might not be splurging on flashy gifts for our friends and family, grocery and liquor spending is expected to increase by 2.8% and 3.6%, respectively.
“Families are expected to go all-out on their Christmas feasts this year, with many Australians celebrating their ability to reunite with family after states reopen borders and ease social distancing regulations,” said Yeoh.
Unsurprisingly, online spending will also grow by 6.4% in the 2020/21 financial year, as more households make the effort to shop around to get a better deal and reap the benefits of home delivery.
Buy Now, Pay Later (BNPL) will also be a popular payment method among households, as more Aussies are expected to ditch their plastic to avoid holiday debt.
“Mozo research shows that Aussies are taking steps to eradicate their debt during the pandemic, so it’s not surprising to see that Buy Now, Pay Later usage will surge during the holiday season,” said Mozo Director, Kirsty Lamont.
This research correlates with recent research by BNPL platform, OpenPay, which found that almost a quarter of Aussies in Sydney and Melbourne are using BNPL to manage their spending during the pandemic.
Mozo’s top three tips for budget-friendly Christmas spending
If you are thinking about getting a head start on your Christmas shopping, you might be wondering about the best way to score some awesome goodies for your loved ones without breaking the bank. So before you start adding things to your virtual cart, here are our top three tips:
- Set a spend limit - While it’s important to set a budget for your overall Christmas spending, it's also a good idea to set a spend limit for every person you’re buying a gift for. This is a great way to prevent overspending, as you aren’t allowed to exceed your set limit.
- Source some extra cash - According to Gumtree’s 2019 Second Hand Economy report, the average Aussie household has over $5,000 worth of unwanted items that could be sold online. So if you’re looking for a way to make some extra cash, this might be a great way to top up your Christmas fund.
- Organise a Secret Santa - Over the last few months, we’ve seen many Aussies rethinking their spending habits due to COVID-19. If money is tight for your household this year, try organising a Secret Santa amongst your family and friends to save on Christmas shopping.
Need a top place to stash your Christmas fund? Our savings account comparison tool can help you compare some of the latest savings accounts from more than 60 banks.
Compare high interest savings accounts - last updated 24 April 2024
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Mozo experts choice awards won:
- Kick Start Savings - 2024
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.
CompareCompareHigh Interest Savings Account
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.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read our Mozo Review to learn more about the Rabobank High Interest Savings Account
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Mozo experts choice awards won:
- High Interest Savings - 2024
Reward Saver
5.25% p.a. (for $0 to $100,000)
0.30% p.a.(for $0 and over)
Yes up to $250,000
Simply grow your balance each month and earn a high interest bonus rate (T&Cs apply). Only requires $1 to open. Free e-banking transactions and no monthly service fees to pay. Access your account via e-banking or the Bendigo Bank app. Must hold an eligible Bendigo Bank transaction account
CompareCompareReward Saver
Simply grow your balance each month and earn a high interest bonus rate (T&Cs apply). Only requires $1 to open. Free e-banking transactions and no monthly service fees to pay. Access your account via e-banking or the Bendigo Bank app. Must hold an eligible Bendigo Bank transaction account
- Maximum rate
- 5.25% p.a. (for $0 to $100,000)
- standard interest rate
- 0.30% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Grow your balance (in addition to interest paid by Bendigo Bank) each month and must have linked Bendigo Everyday or Student Account to be eligible.
- Access
- BPay, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Branch access available for deposits only.
Read our Mozo Review to learn more about the Bendigo Bank Reward Saver
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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.
CompareCompareSavings Account
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.
- Maximum rate
- 5.35% p.a. (for $0 to $250,000)
- standard interest rate
- 4.75% p.a.(for $0 to $1,000,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus variable rate is available for the first four months.
- Access
- BPay, Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must have a Macquarie Transaction Account to link with.
Read our Mozo Review to learn more about the Macquarie Savings Account
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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.
CompareCompareHigh Interest Save Account
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.
- Maximum rate
- 5.10% p.a. (for $0 to $250,000)
- standard interest rate
- 0.10% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Deposit at least $200 to either Spend, Bills or Save account from an external source each month.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Account can only be opened through iOS or Android app, but may be accessed through internet banking.
Read our Mozo Review to learn more about the ubank High Interest Save Account
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