NAB did some research on financial literacy last year and found that while many people were confident of their money know-how, one-quarter of Aussies didn’t have enough for an emergency.
The conclusion to the report was that rising interest rates and an increased cost of living was testing most households - knowledgeable or not.
Being confident about how to handle your money can be a good thing. But planning ahead, knowing how to set realistic goals and understanding how to save are very real skills that can actually help you improve your money management.
Below are 6 pointers to help you think more clearly about everyday money matters and how to sensibly stash some cash away.
1. Start a money plan
Saving money is the first step. Many experts say this is important, but how? Where do you start?
One common piece of advice is to do just that - start! Plan to take a small portion of your income to start your savings routine — no matter how small the amount is.
A tactic that’s often given to would-be savers to consider is the ‘50-30-20 rule’, which means most of your income goes to needs like expenses (50%), a good amount goes to wants (30%) and the rest is for your savings account.
But this might be difficult for first-timers, so why not set your ratio at a more realistic level - say, 10 to 15% for your savings. Saving money is a habit and it needs to be practised. Start small and build from there.
2. Open a savings account
Your pay might be going into a regular bank account, but earning solid interest on your money happens with a savings account.
And many savings accounts offer a bonus interest rate if you meet certain conditions. For example, you can be rewarded if you make regular deposits each month and don’t take money out of your account. This isn’t difficult but you do need to be wary of how your saver of choice works.
Currently, the average bonus savings rate in the Mozo database is at 3.53% p.a. And yet, some shopping around shows that the highest rate savings accounts are still above 5%.
3. Sharpen your money instincts
Getting into a savings mindset can help you get a better read on the rest of your budget. For example, when there’s any potential change to your 50-30-20 ratio, it might be time to adjust your expectations.
Write down your monthly expenses again and tally them up. Include your typical social or entertainment costs, such as your streaming services, mobile bill and even how often you eat lunch out. What’s changed? What can be improved?
From this, you can better understand if you have any spare money to stash away and can re-set your budget.
4. Get on top of debt
Rather than wait for debt to pile up, get on it early. Clearing expenses isn’t just practical, it’s confidence boosting.
Keep in mind, some services allow you to pay bills in smaller amounts instead of paying the whole amount in one go. So you can avoid bill shock by planning and scheduling bills earlier. Ask your various service providers if you can pay fortnightly or monthly, for example.
The other basic rule of debt is, don’t add to it! For instance, avoid taking on the burden of another credit card or buy now pay later service.
All this planning helps and makes the tricky times a bit simpler to manage.
5. Make your personal finances easier
You don’t have to rely on a notepad and pen to track your money - though that can be a very useful exercise for remembering!
For those less inclined to scribble things down, there are so many great apps and online tools, including ones from Up and Frollo. Among their many advantages are auto payments, so you never miss a bill.
Good banking apps can also give you a view of ‘out-goings’, track your recurring expenses and never let your bank account drop below that amount.
So, it’s a lot easier to avoid debt or to overdraw your account with today’s many tools. Late payment penalties should really be a thing of the past if you’re using your apps.
6. Compare bank and savings accounts
Finally, managing your money means having banking products that make sense. There’s no need to complicate things and that’s where we can help.
At Mozo we focus on comparing personal finance products to make your decisions easier. Our experts trawl through them and handpick some of the best to offer you a more sensible starting point.
The right bank or savings account starts with some basic comparison and you can easily start this below.
Compare top savings accounts - last updated 16 March 2024
Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
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Mozo experts choice awards won:
- No Strings Savings - 2023
For more information about these awards go here.
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.
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Savings 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 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.
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High 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 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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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.
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Reward Saver Account
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.
- Maximum rate
- 5.25% p.a. (for $0 to $1,000,000)
- standard interest rate
- 0% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- 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.
- Access
- ATM, EFTPOS, Visa Debit, Cheque book, BPay, Branch access, Phone banking, Internet banking, Bank@Post
- Minimum balance
- $0.00
- Other restrictions
- -
Read our Mozo Review to learn more about the IMB Bank Reward Saver Account
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Mozo experts choice awards won:
- Kick Start Savings - 2023
- No Strings Savings - 2023
For more information about these awards go here.
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.
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High 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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Hero Saver
4.60% p.a. (for $0 to $250,001)
1.00% p.a.(for $0 to $5,000,001)
Yes up to $250,000
Minimum deposit of $200 and no withdrawals in the month.
Earn a generous variable rate on balances up to $250,001 each month you deposit at least $200 (excluding interest) on or before the last business day each month and make no withdrawals during the month. $0 account maintenance fees. Create a goal, set up regular deposits and track your progress on the Bankwest app.
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Hero Saver
Earn a generous variable rate on balances up to $250,001 each month you deposit at least $200 (excluding interest) on or before the last business day each month and make no withdrawals during the month. $0 account maintenance fees. Create a goal, set up regular deposits and track your progress on the Bankwest app.
- Maximum rate
- 4.60% p.a. (for $0 to $250,001)
- standard interest rate
- 1.00% p.a.(for $0 to $5,000,001)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Minimum deposit of $200 and no withdrawals in the month.
- Access
- Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- -
Read our Mozo Review to learn more about the Bankwest Hero Saver
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