With households saving nearly a fifth of their income in the June quarter, this is up from 6% in the March quarter, and up from just 2.5% in 2019's June quarter.

The Australian Bureau of Statistics (ABS) is putting increased savings down to a fall in consumption expenditure, down 12.1% in the June quarter, and boosted social assistance benefits, such as the JobSeeker Coronavirus Supplement, which in cash increased by 41.6%. 

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

Update resultsUpdate
BankSavings AccountBase Interest Rate Max Interest Rate Total Interest Earned Introductory Term Minimum Amount Maximum Amount Minimum Monthly Deposit Minimum Opening Deposit ATM Access Joint Application TagsFeaturesLinkCompare
0.10% p.a.
Bonus rate of 5.00%
Conditions apply.
5.10% p.a.
  • Download the App to open your account
  • No monthly fees on any of your Save accounts
  • Deposit $200 per month to activate bonus interest
0.55% p.a.
Bonus rate of 4.95%
Conditions apply.
5.50% p.a.
  • Deposit at least $1,000+ each month from an external source
  • Make 5 or more eligible transactions
  • Grow your savings balance each month
0.05% p.a.
Bonus rate of 5.30%
Conditions apply.
5.35% p.a.
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 . View disclaimer.

Hours worked also fell 9.8% in the June quarter, which outpaced the 2.5% decline in wages, buoyed by JobKeeper payments.

Gross Domestic Product also fell by 7.0%, the largest ever quarterly fall on record in Australia - the series began in 1959.

Without JobKeeper, increased JobSeeker, and the 'Boosting Cashflow for Employers' policies, household income would have fallen to $283.5 billion - $48 billion lower than ABS' figures.

In total, household income rose $7.1 billion driven by gross income and social assistance benefits.

The ABS also cited loan deferralsearly access to superannuation and rent deferrals as boosts, despite them not being tallied as household income.

Early super access added $18.1 billion to total gross income, while loan and rent deferrals amounted to $1.5 billion. 

Westpac senior economist Andrew Hanlan said the increased savings rate provides households with a "considerable buffer to draw upon in coming quarters".

"Wage incomes fell by only -2.5%, while gross disposable income jumped by 2.2%, or up by a massive 2.9% in real terms," he said.

"This is because of the wage subsidy scheme and other income transfers from the government sector."

The news comes after AMP last week released research into how benefits payments have affected incomes, with incomes up by a net amount of $5,000 since mid-March.

However, the Australian Council of Social Service (ACOSS), in conjunction with the University of NSW, found that without such assistance, Australians living in poverty would have almost doubled.

Instead, there has been a 13% drop of the number of people in poverty.

Ready, Set, Buy!

Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

With bonus Q&A sheet and Crossword!

By subscribing you agree to our privacy policy