The COVID-19 pandemic has changed spending behaviour, with nearly half (48%) of millennials spending less on their credit card compared with 36% of cardholders above the age of 40.

The research from global analytics firm J.D. Power found that nearly one-fifth (18%) of millennial cardholders say the overall value of their card has decreased since the start of COVID-19, compared with 11% of cardholders aged 40 and over.

As a result, 37% of millennial cardholders have already opened or plan to switch to a card with a better rewards program.

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
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 $1,000 in the previous month
  • No account fees
  • Easy access to your money
4000$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
4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • For deposit amounts $0 - $49,999
  • New ING personal savings customers receive an introductory bonus 0.50% p.a. variable kick starter rate for the first 4 months on balances up to $500,000.
  • Reverts to variable ongoing rate. T&Cs apply.

Savings Accelerator (Amounts < $50000)

  • For deposit amounts $0 - $49,999
  • New ING personal savings customers receive an introductory bonus 0.50% p.a. variable kick starter rate for the first 4 months on balances up to $500,000.
  • Reverts to variable ongoing rate. T&Cs apply.
010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Deposit at least $1,000+ each month from an external source
  • Make 5 or more eligible transactions
  • Grow your savings balance each month

Savings Maximiser (<$100k)

  • Deposit at least $1,000+ each month from an external source
  • Make 5 or more eligible transactions
  • Grow your savings balance each month
02000$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 $200 per month to activate bonus interest
020000$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

                      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

                          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 June 16, 2024. View disclaimer.

                            Head of banking and payments intelligence at J.D. Power Australia Bronwyn Gill said credit card providers need to continue offering competitive rewards programs or risk losing millennials as customers.

                            “Millennials are savvy and are shopping around for a card that offers a better rewards program that suits their changed spending habits," she said.

                            "Card issuers must offer reward programs that are relevant to millennials, or risk losing longer-term relationships with this important age group."

                            The research also found that millennials have a higher intention to switch cards than any other age group.

                            More than one-fifth (22%) of millennial cardholders say they intend to switch from their current primary credit card to another one in the next 12 months, double that of cardholders over the age of 40.

                            The main reasons millennials want to replace their credit card are for a better rewards program (29%) and for better benefits (29%).

                            Cash-related rewards are the most favoured reward type, with 27% of millennial cardholders preferring cash rewards/cashback, 23% gift certificates/gift cards/vouchers and 17% prefer airline miles.

                            “Rewards programs are key for millennials," Ms Gill said.

                            "After convenience, earning rewards is the second most important reason as to why millennials use their credit card, however new spending habits are directly influencing the ability to accumulate and redeem rewards."

                            Credit card debt tumbles during COVID

                            Australians wiped off record levels of credit card debt in May, according to Reserve Bank (RBA) data.

                            According to the latest RBA credit and debit card data, Australians wiped $1.64 billion off their credit card debts in May, marking the biggest monthly decrease on record and bringing the national total credit card debt to its lowest level since 2007.

                            But earlier data suggests that many Australians paid down their credit card debt by withdrawing money from their superannuation.

                            Data compiled by credit bureau illion and AlphaBeta shows that 14% of money withdrawn from super early was used to repay personal debts, including credit cardsbuy now pay later bills and other bills.

                            On average, those who used the scheme spent $2,855 in the first fortnight after withdrawing their super, and $393 of that was spent on debt repayments.

                            The RBA data showed that Australians spent $5.82 billion less on their credit cards in May 2020 compared with the same time last year. 

                            Data from specialist retail banking and payments consultancy McLean Roche shows that spend on credit cards was down 26% in May following a 33% decline in April.