Government stimulus measures such as JobKeeper, JobSeeker and early super access has pushed Australian's household financial comfort to near record highs, according to ME Bank's Household Financial Comfort Report.

The report, which surveyed 1,500 households in June, found that Australian household financial comfort increased 3% to 5.76 (out of 10) in the last six months to June 2020 - just shy of its historical high of 5.78 recorded in December 2014.

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
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

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
  • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace
000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
*Rate varies on savings amount
  • Deposit $500 per month to get bonus interest
  • 5.50% p.a. available on total savings up to $100k.
  • 5.00% p.a. applies to savings between $100k-250K.
  • Tiered bonus rates apply. (TMDs at ubank.com.au)
*Rate varies on savings amount

Save Account (<$100,000)

  • Deposit $500 per month to get bonus interest
  • 5.50% p.a. available on total savings up to $100k.
  • 5.00% p.a. applies to savings between $100k-250K.
  • Tiered bonus rates apply. (TMDs at ubank.com.au)
4000$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 $1,000+ each month from an external source
  • Make 5 or more eligible transactions
  • Grow your savings balance each month
05001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

Goal Saver

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

    Young Saver Account

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

      Smart Saver Account (Under 25)

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

        Reward Saver Account($0-$100k)

          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)

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

              ANZ Save

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

                Bonus Saver Account (Amounts < $100k)

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

                  NetBank Saver

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

                    Life (< 30 years) (Monthly deposit)

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

                      Boost Saver

                        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)

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

                              Reward Saver Kick Start (Amounts ≤ $1m)

                                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 August 21, 2024. View disclaimer.

                                Important Information and Comparison Rate Warning

                                Financial comfort increased the most among typically struggling cohorts, such as casual workers, the unemployed, low income households and single parent households.

                                ME Bank’s Consulting Economist, Jeff Oughton said government support measures have allowed many who would typically be under financial stress to increase savings and pay off debts.

                                “Fear of COVID-19 and a very weak labour market triggered many households to increase precautionary savings, reduce spending, draw on long-term savings, such as superannuation, and delay bills or loan repayments,” he said.

                                “In June, 57% of households ‘spent less than they earned each month’ – up 8 percentage points to the highest level of households saving since the survey began nine years ago."

                                But the report also found that 21% of households have less than $1,000 in savings, on average about $300 which is significantly lower than the current JobSeeker fortnightly payment. Of those households, just 3% reported they could maintain their current lifestyle for more than six months if they lost their incomes.

                                More than half (59%) said it would be ‘difficult to find a new job in two months if they become unemployed’, while 30% said it would be 'very difficult'.

                                Mr Oughton warned that many households will struggle to get by once stimulus measures are wound back.

                                “Financial comfort levels are up for now, but many households are on the cliff’s edge. They’ve lost income, their jobs and entire livelihoods, their wafer-thin savings buffer is dwindling, and government support is the main action stopping them from falling over,” Mr Oughton said.

                                “Government stimulus has bought some time and helped boost the financial resilience of Australian households for now. But a household savings cliff remains as government support tapers. Unless the economy gains momentum, tapering government support too soon could have disastrous consequences on the financial comfort of households.

                                “This survey shows that the financial consequences for households of this pandemic remain critical. Many eyes will be on what governments do in the final months of 2020 and into next year."

                                40% of households have benefitted from support measures

                                The report also found that 40% of households have benefitted from Federal Government support schemes such as JobKeeper and JobSeeker, or accessed their superannuation early.

                                In the six months to June 2020, one in five Australian households had accessed one or both Federal government payment supports − specifically, JobKeeper (12%) and JobSeeker (9%).

                                • Gen Z was the largest recipient of JobSeeker (20%) and the second biggest beneficiary of JobKeeper (14%) just behind Gen X (18%).
                                • 12% dipped into their existing savings - rising to 27% among Gen Z
                                • 8% accessed up to $10,000 of their superannuation - rising to 30% among Gen Z (three times more than Gen Y and Gen X)
                                • 27% of Gen Z's dipped into their existing savings to make ends meet
                                • 15% of Gen Z requested rent reductions
                                • 26% of Gen Z delayed or deferred bills and 11% deferred loan repayments

                                Mr Oughton said while the impact of the pandemic has been felt strongly by some in this generation, overall the financial comfort of Gen Z increased 4% during the past six months to June, and for young adults living at home this jumped by 13%.

                                “Gen Z actively took up a variety of support measures to bolster their financial resilience and in turn financial comfort during the first wave of the pandemic," Mr Oughton said.

                                "This is likely due to many being employed on a casual or part time basis across COVID-19 affected industries such as retail, hospitality and tourism."

                                Single parents reported the largest gain in financial comfort (up 13% to 5.04), boosted by the introduction of free childcare as well as the increased income payments from government.

                                However, the overall level of financial comfort of single parents, the unemployed, and households with low comfort and low savings remains well below the average Australian household.