Nearly four million Aussies say they have no savings to fall back on. The worrying new research comes amid rising interest rates and cost of living pressures.
According to the research from Finder, one in five Australians (19 per cent) have no savings in case of an emergency, while 41 per cent have between $2 and $5,000 in cash savings.
Nearly a third (31 per cent) of people say they are saving less than $50 on a monthly basis, the survey of 3,112 Australians found.
“Most people know that saving money is important, but with the cost of living hitting hard, not everyone has an easy time doing it,” Finder credit card expert Amy Bradney-George said.
“With three quarters of Australians stressed about their current financial situation, it’s never been more important to prioritise saving money so that you know you have a buffer.”
Many savers miss out on rate rise
The big four banks have been quick to pass on yesterday’s rate rise to home loan borrowers, but many savers have missed out.
Commonwealth Bank was among the ‘top of the class’, hiking all of its key savings accounts and in many cases by more than the official 0.25 percentage point rise.
Westpac increased its bonus saver rates for adults and young adults, and the introductory rate on its eSaver (meaning only new customers will benefit).
ANZ only increased its ANZ Plus Save account, hiking it to a competitive 3 per cent.
NAB neglected savers altogether and is yet to announce any savings hikes.
Savers are becoming a ‘sought-after commodity’ for banks as they look to bring in new business, RateCity.com.au research director Sally Tindall said.
“That’s because deposits are becoming an increasingly attractive source of funding for home loans – great news for savers who could see further rises in the months to come,” Tindall said.
“We expect a competitive ongoing savings rate will be over 3.5 per cent after these hikes filter through.”