The COVID-19 pandemic has changed spending behaviour, with nearly half (48%) of millennials spending less on their credit card compared with 36% of cardholders above the age of 40.

The research from global analytics firm J.D. Power found that nearly one-fifth (18%) of millennial cardholders say the overall value of their card has decreased since the start of COVID-19, compared with 11% of cardholders aged 40 and over.

As a result, 37% of millennial cardholders have already opened or plan to switch to a card with a better rewards program.

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

4001$product[$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
Disclosure

High Interest Savings Account (<$250k)

  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance
Disclosure
000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
Use code EASY30 to score $30*
  • Use code EASY30 to score $30 after 5 card purchases in your first 30 days. See terms link on the app store*
  • Retrace your spending steps into categories with Spending Footprint.
  • No monthly or international fees on any of your transactions.
Disclosure
Use code EASY30 to score $30*

Save Account

  • Use code EASY30 to score $30 after 5 card purchases in your first 30 days. See terms link on the app store*
  • Retrace your spending steps into categories with Spending Footprint.
  • No monthly or international fees on any of your transactions.
Disclosure
400$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Special offer: Savings Accelerator (Kick Starter offer).
  • For a limited time, new ING customers can get a bonus 0.70% p.a. on their savings rate on balances of $150,000 up to $500,000 for the first 4 months. T&Cs apply.
  • If your balance is over $500,000 (but less than $5 million) you will earn the ongoing variable rate of 4.7%
Disclosure

Savings Accelerator

  • Special offer: Savings Accelerator (Kick Starter offer).
  • For a limited time, new ING customers can get a bonus 0.70% p.a. on their savings rate on balances of $150,000 up to $500,000 for the first 4 months. T&Cs apply.
  • If your balance is over $500,000 (but less than $5 million) you will earn the ongoing variable rate of 4.7%
Disclosure
4000$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
Disclosure

Savings Account

  • 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
Disclosure
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
Disclosure

Savings Maximiser

  • Deposit at least $1,000+ each month from an external source
  • Make 5 or more eligible transactions. Grow your savings balance each month
Disclosure
02000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
Disclosure

Online Savings - Premium Saver

    Disclosure
    020000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

    HomeME Savings Account (<$100k)

      02001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

      Growth Saver

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

        Virgin Money Boost Saver

          01001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

          Bonus Saver Account

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

            Bonus Saver

              0100$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

              mySaver

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

                Simple Saver

                  4001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                  Netsave Account

                    3000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                    Online Savings Account

                      3000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                      HSBC Everyday Savings Account

                        0501$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                        Incentive Saver Account

                          4000.01$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                          Bankwest Easy Saver

                            0500$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                            Incentive Saver Account

                              02000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                              Growth Saver Account

                                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 January 10, 2025. View disclaimer.

                                Important Information and Comparison Rate Warning

                                Head of banking and payments intelligence at J.D. Power Australia Bronwyn Gill said credit card providers need to continue offering competitive rewards programs or risk losing millennials as customers.

                                “Millennials are savvy and are shopping around for a card that offers a better rewards program that suits their changed spending habits," she said.

                                "Card issuers must offer reward programs that are relevant to millennials, or risk losing longer-term relationships with this important age group."

                                The research also found that millennials have a higher intention to switch cards than any other age group.

                                More than one-fifth (22%) of millennial cardholders say they intend to switch from their current primary credit card to another one in the next 12 months, double that of cardholders over the age of 40.

                                The main reasons millennials want to replace their credit card are for a better rewards program (29%) and for better benefits (29%).

                                Cash-related rewards are the most favoured reward type, with 27% of millennial cardholders preferring cash rewards/cashback, 23% gift certificates/gift cards/vouchers and 17% prefer airline miles.

                                “Rewards programs are key for millennials," Ms Gill said.

                                "After convenience, earning rewards is the second most important reason as to why millennials use their credit card, however new spending habits are directly influencing the ability to accumulate and redeem rewards."

                                Credit card debt tumbles during COVID

                                Australians wiped off record levels of credit card debt in May, according to Reserve Bank (RBA) data.

                                According to the latest RBA credit and debit card data, Australians wiped $1.64 billion off their credit card debts in May, marking the biggest monthly decrease on record and bringing the national total credit card debt to its lowest level since 2007.

                                But earlier data suggests that many Australians paid down their credit card debt by withdrawing money from their superannuation.

                                Data compiled by credit bureau illion and AlphaBeta shows that 14% of money withdrawn from super early was used to repay personal debts, including credit cardsbuy now pay later bills and other bills.

                                On average, those who used the scheme spent $2,855 in the first fortnight after withdrawing their super, and $393 of that was spent on debt repayments.

                                The RBA data showed that Australians spent $5.82 billion less on their credit cards in May 2020 compared with the same time last year. 

                                Data from specialist retail banking and payments consultancy McLean Roche shows that spend on credit cards was down 26% in May following a 33% decline in April.