New research from MyState Bank involving more than 1,000 Australians discovered our new thrifty intentions for FY21, as the nation prepares to enter its first recession in almost three decades

MyState's research found that more than four in 10 Australians (44%) are resolving to curb spending on discretionary items over the next six months. 

Australians also plan to cut spending in areas such as:

  • Public transport: 43%
  • Home furnishings: 38%
  • Food takeout and delivery: 38%
  • Clothing and footwear: 36%

Meanwhile, more than half of Australians have shelved travel plans for the next six months, in spite of most domestic borders being open. 

Despite gyms being back, surprisingly 40% said they're planning to cut back on exercise costs, while 44% and 35% said they're cutting back on gambling and cigarette spending respectively. 

Read: Early superannuation withdrawals spent on gambling, alcohol and clothes.

Need somewhere to store cash and earn interest? The table below features introductory savings accounts with some of the highest interest rates on the market.

Provider

4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance

High Interest Savings Account (< $250k)

  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance
020001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • $0 monthly account fee
  • Dip into your savings without losing your bonus interest

Home Saver

  • $0 monthly account fee
  • Dip into your savings without losing your bonus interest
02000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
No monthly fees
  • Download the App to open your account
  • Get better visibility of your spending within App!
  • Deposit $200 per month to activate bonus interest
No monthly fees

Save Account

  • Download the App to open your account
  • Get better visibility of your spending within App!
  • Deposit $200 per month to activate bonus interest
4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
  • No withdrawal notice periods or interest rate penalties

Savings Account (Amounts < $250k)

  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
  • No withdrawal notice periods or interest rate penalties
020000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

HomeME Savings Account ($0 - $100,000)

    02001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

    Growth Saver ($1 - $25k)

      010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
      For customers aged 14-35 years
      For customers aged 14-35 years

      Future Saver Account ( < $50k)

        05001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
        • Maximum Age - 24

        Goal Saver

        • Maximum Age - 24
        010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

        Boost Saver

          00.011$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

          Reward Saver Account (31 years +) ($0-$100k)

            01000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

            Bonus Saver Account (Amounts < $100k)

              0201$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

              Reward Saver Kick Start (Amounts ≤ $1m)

                00.010$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                Life (< 30 years) (Monthly deposit)

                  5000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                  NetBank Saver

                    000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                    ANZ Save

                      010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                      Savings Maximiser (<$100k)

                        050$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                        Young Saver Account

                          0501$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                          Save up

                            010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
                            • Earn up to 5.40% pa by depositing $1,000 in the previous month
                            • No account fees
                            • Easy access to your money

                            Saver Account (<$250k)

                            • Earn up to 5.40% pa by depositing $1,000 in the previous month
                            • No account fees
                            • Easy access to your money
                            02000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                            Bonus Saver (<$1 Million)

                              Important Information and Comparison Rate Warning

                              All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of April 17, 2024. View disclaimer.

                              MyState Bank General Manager for Customer Experience Heather McGovern said for many Australians, the introduction of social distancing measures has been an opportunity to save more than ever before. 

                              “Being isolated has also compelled more Australians to consider new and more innovative and cost-efficient ways of doing things, like swapping out memberships at physical gyms for fitness apps," Ms McGovern said. 

                              "Our research indicates that Australians are likely to prolong their savvier spending habits even after social distancing measures have lifted.

                              “At this time of economic uncertainty, we are pleased to see Australians cutting back wherever they can to find a greater sense of financial balance.”

                              According to MyState, groceries and household utilities are the only two categories which are likely to see major increases in spending over the next six months, as around 25% of respondents said they would spend more on these essentials. 

                              Looking further forward, maintaining a balanced budget heading into 2021 is a goal for over a third of Australians, while one in five will be more focused on building an emergency savings fund, which should have around three to six months of living expenses in it in case of an emergency, such as losing your job. 

                              Read: Aussies return to shops in record numbers in June

                              Tips for finding your financial balance 

                              Australians cutting back on discretionary spending could be associated with general economic concern.

                              MyState's research found that overwhelmingly, the nation’s economic outlook continues to be the major concern for 67% of Australians heading into the new financial year.

                              More than four in 10 Australians reported concern with not having enough savings while 26% of Australians are equally concerned with the employment outlook and slow wage growth.

                              “While recovery is well underway, the majority of Australians expect long-lasting effects on the economy from COVID-19,” Ms McGovern said.

                              “With economic growth likely to be in the red over the coming quarter, there are a few steps Australians can take to give them confidence to navigate the future economic uncertainty.”

                              MyState has shared five tips on how Australians can find a greater sense of financial balance in the aftermath of COVID-19.

                              1. Pay down high-interest debts. Paying down any high-interest accruing outstanding debt such as your credit card balance is crucial to create some breathing room in your monthly budget. 
                              2. Change your savings priorities. While a vacation to Europe seemed likely at the start of the year, the new financial year may cause a re-prioritisation of savings goals. Perhaps that money might be better placed towards a longer-term goal such as an emergency savings fund.
                              3. Find a financial buddy instead of a gym buddy. Start by having a frank conversation with a close and trusted friend who will motivate you and keep you on track while you work towards hitting your financial benchmark – and, of course, you do the same for them.
                              4. Keep the good financial habits. many Australians have been able to reduce their spending during lockdown – for example, having more dinners at home rather than eating out or being active by going for a walk or bike ride rather than going to the shops.
                              5. Being in a recession means living within your means. Do a financial audit to separate your wants from your needs and work out where to cut back. Review all your expenses from your electricity bill to your video streaming subscription – there are often real savings to be made with little impact to your ‘lived life’.

                              You can also compare high-interest savings accounts here for help finding a place to stash your cash.