Surprising Aussies leading the cash stash

More than half of Aussies are stashing their cash in high-interest savings accounts, with one generation leading the charge.

NAB research found Gen Zs had been looking to make their money work harder for them, with nearly two-thirds of younger Australians aged 18-29 having placed their savings in a high-interest account, compared to just half of Australians aged over 30.

NAB personal banking executive Kylie Young said younger Australians overwhelmingly wanted to buy and invest in property but those priced out of the market or trying to save larger deposits were seeking more rewarding places to put their hard-earned money.

“Younger Australians are stepping up to the challenge and taking the opportunity to stash their cash in high-interest savings accounts and grow their money,” Young said.

“Gen Z want to secure their future, ensure their own financial well-being, and contend with rising living costs. High-interest savings accounts can be a safe, smart and stable way to manage your money, providing ready access to funds if they’re needed, as well as a rewarding interest rate.”

Over the past 11 months, interest rates on several high-interest savings and term-deposit accounts have increased by around 4 per cent, which Young said was providing Australians with more rewarding returns.

“It’s a very competitive market for savers, so now is a great time to shop around and find the best rate and product features that work for you,” she said.

“Another option for those with a home loan is to put your savings into an offset account, giving you easy access to those funds while saving on interest and helping to pay off your mortgage sooner.”

 

The best savings rates

According to RateCity, there are 24 savings accounts with rates of 4.5 per cent or above.

Bank Ongoing savings rate Conditions Balance cap for max rate
Australian Mutual – Young Saver Account – kids 5.50% Ages 0-18yrs. $50,000
Bank of Queensland – Future Saver – young adults 5.15% Ages 14-35yrs. Deposit $1,000+ into linked bank account and make 5+ purchases mth (waived for under-18s) $50,000
Great Southern Bank – Youth Esaver – kids 5.10% Ages 0-18yrs. $50,000
ING – Savings Maximiser 5.00% Deposit $1,000+ into a linked bank account, make 5+ purchases/mth, grow savings balance each mth $100,000
MOVE Bank – Growth Saver 5.00% Deposit $200+ and make no withdrawals $25,000
Virgin Money – Boost Saver 4.85% Deposit $2000+ into a linked bank account (less for under-25s) and make 5+ purchases/mth. Provide 32 days’ notice to withdraw. $250,000
Great Southern Bank – Goal Saver – young adults 4.85% Ages 18-24 yrs. Deposit $500+ into a linked bank account, make 5+ purchases/mth $50,000
Great Southern Bank – Home Saver 4.75% Deposit $2,000+ into linked bank account and make 5+ purchases/mth $100,000
Westpac – Spend and Save – young adults 4.70% Ages 18-29 yrs. Grow balance and make 5+ purchases/mth $30,000
Bank of Queensland – Smart Saver 4.60% Ages over 35. Deposit $1,000+ into linked account and make 5+ purchases/mth $250,000
ubank – Save 4.60% Deposit $200+ every month into any linked account $250,000
Great Southern Bank – Advantage Saver 4.60% Grow the balance by $250 each month $100,000 – $750,000
Peoples Choice – Young Saver Account – kids 4.55% Ages 0–17. Deposit $5+ each month and no withdrawals $30,000
St.George – Incentive Saver 4.50% Deposit $50+/mth (less for under-21s) . Extra 0.10% for 3 mths if opening online N/A
Bank of Melbourne – Incentive Saver 4.50% Deposit $50+/mth (less for under-21s) . Extra 0.10% for 3 mths if opening online N/A
BankSA – Incentive Saver 4.50% Deposit $50+/mth (less for under-21s) . Extra 0.10% for 3 mths if opening online N/A
MyState Bank – Bonus Saver 4.50% Deposit $20+/mth into savings account and 5+ purchases on linked bank account $250,000
First Option Bank – Savings+Bonus 4.50% Deposit $100+/mth and no withdrawals $250,000
G&C Mutual Bank – Bonus Saver 4.50% Deposit $100+/mth and no withdrawals N/A
RACQ Bank – Bonus Saver 4.50% Deposit $100+/mth and no withdrawals $99,999
People’s Choice – Dream Fund 4.50% Grow balance each month N/A
Police Bank – U30 Super Charge – young adults 4.50% Ages 18-29 yrs. Deposit salary into a Police Bank account $10,000
Bank of Heritage Isle – U30 Super Charge – young adults 4.50% Ages 18-29 yrs. Deposit salary into a Police Bank account $10,000
IMB – Reward Saver Kick Start – kids 4.50% Under-18s and students up to 30: Deposit $20+ each month and make no withdrawals $10,000

 

article from: au.finance.yahoo.com