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Australians stash an extra $124 billion in the bank in the year since COVID
New figures out today from APRA show Australians have deposited an extra $124.14 billion in the bank since COVID hit.
APRA’s monthly banking statistics for March show a 12.43 per cent increase year-on-year in the total amount households have in deposits, which includes savings, term deposits, transaction and offset accounts.
Total amount from households in authorised deposit-taking institutions
| Total amount (March 2021) | Month-on-month change (Feb v Mar) | Year-on-year change (Mar 2020 v Mar 2021) |
| $1.123 trillion | $8.58 billion (0.77%) | $124.14 billion (12.43%) |
Source: Household deposit data from APRA’s March monthly banking statistics released April 30, 2021. Includes all authorised deposit-taking institutions
RateCity research director, Sally Tindall, said the sharp boost in cash over the last 12 months came as no surprise as families prioritised their personal finances in the wake of COVID.
“COVID has been a financial wake-up call for many Australians,” she said
“Since the pandemic hit, many families have put their personal finances first, getting themselves into a stronger position so they can tackle future challenges.
“Months of lockdown living combined with rate cuts, tax cuts and initiatives such as the early access to super scheme have helped many families build a buffer
“Ironically, at the same time people have been stashing their cash, the interest rates offered on savings have plummeted.
“Banks are full to the brim with cash from households. As a result, they simply aren’t willing to pay anything more than peanuts in return,” she said.
RateCity data shows the highest ongoing savings rate at the start of COVID in March last year was 2.25 per cent. Today it is just 1.35 per cent – a drop of 0.90 per cent in 14 months.
“Most banks haven’t exactly been campaigning for more savings customers. If anything, they’ve been discouraging deposits by slashing bonus rates and tightening rules around extra interest. A handful of banks have even terminated some of their bonus rates altogether,” she said.
APRA total household deposits: Top 10 ADI’s
| Bank | Market Share | Total deposits from households | Monthly change (%) | Year-on-year change ($) | Year-on-year change (%) |
| CBA | 27.29% | $306.51 B | 1.21% | $37.33 B | 13.87% |
| Westpac Group | 20.79% | $233.46 B | 0.52% | $16.00 B | 7.36% |
| NAB | 13.33% | $149.66 B | 0.39% | $14.96 B | 11.10% |
| ANZ Group | 12.55% | $140.93 B | 0.23% | $15.25 B | 12.13% |
| ING | 3.55% | $39.90 B | 0.35% | $3.53 B | 9.71% |
| Bendigo and Adelaide | 3.13% | $35.10 B | 1.29% | $4.79 B | 15.79% |
| Suncorp | 2.55% | $28.59 B | 1.27% | $4.16 B | 17.02% |
| Macquarie Bank | 2.09% | $23.50 B | 2.22% | $10.14 B | 75.87% |
| Bank of Queensland | 1.53% | $17.13 B | 1.67% | $2.37 B | 16.02% |
| HSBC Bank Australia | 1.16% | $12.98 B | -2.04% | -$21 million | -0.16% |
Source: Household deposit data from APRA’s March monthly banking statistics released April 30, 2021. Includes all authorised deposit-taking institutions.
Highest ongoing savings accounts
| Bank | Account | Max rate |
| ING | Savings Maximiser | 1.35% |
| AMP | Saver Account | 1.25% |
| Virgin Money | Boost Saver | 1.20% |
| 86 400 | Save Account | 1.20% |
Conditions apply for max interest rate
Highest standard savings rates
| Bank | Product | Intro rate (4 mths) | Ongoing rate |
| Rabobank Australia | High Interest Savings Account | 1.50% | 0.25% |
| Macquarie Bank | Macquarie Savings Account | 1.10% | 0.95% |
| Citi | Online Saver | 1.10% | 0.35% |
Big four banks conditional savings rates
| Bank | Account | Max rate (if conditions met) |
| CBA | GoalSaver | 0.35% |
| Westpac | Life | 0.40% |
| NAB | Reward Saver | 0.30% |
| ANZ | Progress Saver | 0.40% |
Big four banks standard savings rates
| Bank | Account | Max intro rate | Ongoing rate |
| CBA | NetBank Saver (5 mths) | 0.40% | 0.05% |
| Westpac | eSaver (5 mths) | 0.40% | 0.05% |
| NAB | iSaver (4 mths) | 0.35% | 0.05% |
| ANZ | Online Saver (3 mths) | 0.35% | 0.05% |
Disclaimer
This article is over two years old, last updated on May 3, 2021. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent bank accounts articles.
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