Data released by illion and Alphabeta on Monday showed many Australians who had withdrawn their super had used the money to increase their spending, not just maintain it. 

Additionally, nearly half (40%) of those who accessed their superannuation saw no drop in their income during the COVID pandemic. 

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

4001$product[$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
Disclosure

High Interest Savings Account (<$250k)

  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance
Disclosure
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
  • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace
Disclosure

Macquarie Savings Account (<$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
  • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace
Disclosure
400$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Special offer: Savings Accelerator (Kick Starter offer).
  • For a limited time, new ING customers can get a bonus 0.70% p.a. on their savings rate on balances of $150,000 up to $500,000 for the first 4 months. T&Cs apply.
  • If your balance is over $500,000 (but less than $5 million) you will earn the ongoing variable rate of 4.7%
Disclosure

Savings Accelerator

  • Special offer: Savings Accelerator (Kick Starter offer).
  • For a limited time, new ING customers can get a bonus 0.70% p.a. on their savings rate on balances of $150,000 up to $500,000 for the first 4 months. T&Cs apply.
  • If your balance is over $500,000 (but less than $5 million) you will earn the ongoing variable rate of 4.7%
Disclosure
000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Set up your Pay Cycle and connect your accounts from over 140 financial institutions.
  • Retrace your spending steps into categories with Spending Footprint.
  • Start tapping straightaway with Apple Pay, Google Pay™, Samsung Pay, and Garmin Pay.
  • No monthly or international fees on any of your transactions.
Disclosure

Save Account

  • Set up your Pay Cycle and connect your accounts from over 140 financial institutions.
  • Retrace your spending steps into categories with Spending Footprint.
  • Start tapping straightaway with Apple Pay, Google Pay™, Samsung Pay, and Garmin Pay.
  • No monthly or international fees on any of your transactions.
Disclosure
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
Disclosure

Savings Maximiser

  • Deposit at least $1,000+ each month from an external source
  • Make 5 or more eligible transactions
  • Grow your savings balance each month
Disclosure
010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Earn up to 5.20% pa by depositing $1,000 in the previous month
  • No account fees
  • Easy access to your money
Disclosure

AMP Saver Account

  • Earn up to 5.20% pa by depositing $1,000 in the previous month
  • No account fees
  • Easy access to your money
Disclosure
020000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

HomeME Savings Account (<$100k)

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

    Growth Saver

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

      Virgin Money Boost Saver

        01001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

        Bonus Saver Account

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

          Bonus Saver

            0100$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

            mySaver

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

              Simple Saver

                4001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                Netsave Account

                  3000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                  Online Savings Account

                    3000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                    HSBC Everyday Savings Account

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

                      Incentive Saver Account

                        4000.01$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                        Bankwest Easy Saver

                          0502$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                          Bonus Saver

                            0500$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                            Incentive Saver Account

                              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 October 5, 2024. View disclaimer.

                              Important Information and Comparison Rate Warning

                              AlphaBeta Director Dr Andrew Charlton said people may not understand how much their spending now would cost them in retirement. 

                              "People who accessed their superannuation have made one of the most expensive spending decisions of their lives," Dr Charlton said.

                              "While this policy was aimed as a lifeline, what we see is many people accessing their Super, who really could have kept it working away until their retirement." 

                              Spending nearly tripled in the fortnight after the money was received, compared to an average fortnight before the money was accessed.

                              A third of this money was used up in the first two weeks.

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                              On average, people withdrew around $8,000 and spent an extra $2,855 in two weeks, compared with the same group's average spending in a normal fortnight.

                              Simon Bligh, illion chief executive, said 64% of the additional spending was on discretionary items such as clothing, furniture, restaurants and alcohol.

                              “There’s a group of people out there living very large on pizza and beer courtesy of tax-free super," Mr Bligh said. 

                              "These are the most expensive pizzas they will ever eat. This money is available for anyone with a bit of Super who puts their hand up.

                              "It’s a situation that was entirely avoidable." 

                              The data revealed 14% of the money was used to repay personal debts, including credit cardsbuy now pay later bills and other bills, and 11% was spent on gambling.

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                              “Based on the compounding nature and investment returns of Super, spending this amount of Super on low priority discretionary items such as fashion and gambling will have an impact worth potentially $100,000 when it comes to retirement,” Dr Charlton said. 

                              Mr Bligh said there was a chance to address this and rectify it before the next tranche of Super payments could be accessed.

                              “We’d certainly urge the government to put in some checks and balances at the very least," he said. 

                              “The next round of releasing Super should be more tightly managed, with more due diligence over whether the applicants qualify.

                              "Tools are readily available to do this digitally." 

                              Data from the Australian Tax Office (ATO) revealed 1.35 million early release superannuation applications had been approved, with most withdrawing the maximum of $10,000. 

                              More than one in seven women withdrawing their whole super balance

                              Analysis of early super withdrawal applications showed women were withdrawing a greater proportion of their super balance than men.

                              Despite women withdrawing less than men, on average they were withdrawing 21% of their starting super balances, compared to 17% for men.

                              Additionally, 14% of women were clearing out their entire super balance as a result of these withdrawals, compared to 12% of men.

                              These withdrawals are widening the gender superannuation gap, with men having on average 29% higher superannuation balances than women following the withdrawals, increasing from 25%.

                              According to the Australian Bureau of Statistics, 325,000 women became unemployed in April, representing 55% of all jobs lost in Australia, while female work hours reduced by 11.5% compared to a 7.5% reduction in male hours.

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                              Lara Bourguignon, AMP’s Managing Director, Superannuation, Retirement and Platforms, said AMP’s analysis of early super withdrawals reflects the greater impact COVID-19 was having on female employment.

                              “70% of workers in the health and social sectors are also women," Ms Bourguignon said. 

                              "These are lower income occupations which are at the front of the fight against COVID-19. Cleaners, teachers, child-care and aged care workers are predominantly women.

                              “We also know that more women have lost their jobs or had their work hours reduced as a result of COVID-19.

                              "They are doing it particularly tough at the moment and the early release scheme has been a vitally important initiative to help manage through the crisis."