Data released by illion and Alphabeta on Monday showed many Australians who had withdrawn their super had used the money to increase their spending, not just maintain it.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

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

Saver Account (<$250k)

  • No account fees
  • Total ongoing variable rate of up to 5.20% pa by depositing $1,000 in the previous month
  • Easy access to your money
4000$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
  • A great base interest rate of 4.75%

Savings Account (Amounts < $250k)

  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
  • A great base interest rate of 4.75%
020001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Never miss out on your bonus interest with a little help from the Bonus Interest Tracker
  • $0 monthly account fee
  • Dip into your savings without losing your bonus interest

Home Saver

  • Never miss out on your bonus interest with a little help from the Bonus Interest Tracker
  • $0 monthly account fee
  • Dip into your savings without losing your bonus interest
02000$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 $200 per month to activate bonus interest
020000$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

      Target Saver

        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
          • $0 monthly account fee
          • Earn bonus interest

          Goal Saver

          • Maximum Age - 24
          • $0 monthly account fee
          • Earn bonus interest
          010000$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

                            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 December 10, 2023. View disclaimer.

                            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."