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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 to help you keep your head above choppy financial waters. As a result, the average Australian saver has burnt through their cash quickly. 

Let’s take a look at some savings trends and factors that can impact our ability better.

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. 

NAB data on Aussie savings 

NAB’s Wellbeing Survey for Q3 of 2023 also shows that household savings declined by 29% (28% previous quarter). However, the number of aspirational savers rose to 77%. This may mean that, while this economic climate is weathering Household savings, the willingness to build them back up during better economic times exists.

In a separate release, NAB also found some average savings numbers for different socio-economic and age groups. The overall average sits at $34,507 for all Australians. Meanwhile, the $100,000+ bracket saw an average level of savings at $58,280 and the $75,000 to $100,000 saw average savings of about $30,046.

Average savings by Age & Gender
Age
Average savings - male
Average savings - female
18-29
$18,712
$11,153
30-49
$27,005
$24,081
50-64
$106,236
$22,759
65+
$98,312
$46,044

Source: NAB

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, significantly impact how much people can and do 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 income bracket you belong to. There are some strategies to consider:

Savings patterns and goals

Younger Australians, particularly those in their 20s and early 30s, might have different savings patterns compared to older age groups. For example, 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 5.50% 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.

Getting your cash 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 reserves which gives you options. One of the best ways of getting a high interest savings account is by comparing providers. 

This is where we come in. Mozo’s database has 205 savings accounts you can compare on our main hub pages. Alternatively, you can check out these handy tools in the table below… 

Savings account comparisons on Mozo - last updated 15 April 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.

    Compare
    Details
  • 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.

    Compare
    Details
  • 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.

    Compare
    Details
  • 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.

    Compare
    Details
  • 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 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.

    Compare
    Details
  • 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

    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.

    Compare
    Details
  • MoneyMAX Account

    No Current Offer

    4.75% p.a.(for $1 and over)

    Yes up to $250,000

    Unlimited access 24/7 via Banking App, Phone & Internet Banking. Interest is calculated daily and paid monthly. No transaction fees or monthly service fees. No minimum balance or withdrawal restrictions. Online access only.

    Compare
    Details

^See information about the Mozo Experts Choice Savings Account Awards

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Cameron Thomson
Cameron Thomson
RG146
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.