Over the past four years, term deposits have been the largest category of savings held by Australian consumers in Banks, Building Societies or Credit Unions. Almost a third (31.2%) of all savings dollars of Australians aged 14+, are now held in term deposit accounts.
Over the past four years, term deposits have been the largest category of savings held by Australian consumers in Banks, Building Societies or Credit Unions. Almost a third (31.2%) of all savings dollars of Australians aged 14+, are now held in term deposit accounts. The next largest savings categories are transaction accounts (17.5%) followed by high interest on-line accounts (15.6%). These figures are based on the latest findings from the Roy Morgan Consumer Finance Single Source.
Over the 12 months to January 2013, 41.6% of term deposit balances were held by Pre Boomers (those born before 1946) and 38.7% by Baby Boomers (born 1946 – 1960). Since January 2009, the total amount of money held in term deposits has grown by 44.0%, well above the 13.5% growth in other types of deposits.
Source:Roy Morgan Single Source (Australia), 12 months to January 2013, sample size = 6,262.
Norman Morris, Industry Communications Director Roy Morgan Research says:
“Over the past few years there have been changes in the Australian savings market place. While term deposits overall are the favourite home for Australian’s savings there are differences exhibited by generations.
“For both Pre Boomers and Baby Boomers term deposits are their favourite place to save their money while; for Gen X, Gen Y and Gen Z, transaction accounts take top place. A link with their debit card to those accounts and the ability to access their money at any time may be some of the key triggers, combined with the fact that these younger generations have less money to put aside for the longer term.
“As part of the Basel III reforms, which are set to be enforced by 2015, financial institutions must adhere to higher capital requirements and will need to attract longer-term deposits. The competition to attract customers for these types of products will continue in 2013, so understanding customers' needs will be a key differentiator.”
Roy Morgan Research
Roy Morgan Research is Australia’s best known and longest established market research and public opinion survey company. Roy Morgan Single Source is thorough, accurate, and provides comprehensive, directly applicable information about current and future customers. It is unique in that it directs all the questions to each individual from a base survey sample of around 55,000 interviews in Australia and 15,000 interviews in New Zealand annually - the largest Single Source databases in the world. The questions asked relate to lifestyle and attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. This lead product is supported by a nationally networked, consultancy-orientated market research capability.
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