The Westpac-Melbourne Institute consumer confidence index rose 18% from 79.5 in August to 93.8 in September.

While Westpac chief economist Bill Evans called August's results an "over-reaction", he called September's bounce back a "pleasant surprise".

At 93.8, this is just 1.6% below the six-month average prior to the pandemic locking down the economy in March.

The category with the biggest bounce-back was 'Economic conditions next 12 months', which soared 41% over August's levels.

'Time to buy a dwelling' also rose 3% for an index of 110.5, with CommBank revising its house price fall forecast to 6%.

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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 TagsFeaturesLinkComparePromoted ProductDisclosure
5.00% p.a.
5.50% p.a.
Intro rate for 4 months
then 5.00% p.a.
$1,046
4 months
$0
$249,999
$0
$0
  • 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
4.70% p.a.
5.40% p.a.
Intro rate for 4 months
then 4.70% p.a.
$998
4 months
$250,000
$99,999,999
$0
$0
  • 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
0.00% p.a.
Bonus rate of 5.50%
Rate varies on savings amount.
5.50% p.a.
$1,128
–
$0
$99,999
$0
$0
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  • No monthly or international fees on any of your transactions.
 Disclosure
1.00% p.a.
Bonus rate of 4.20%
Rate varies on savings amount.
5.20% p.a.
$1,065
–
$0
$99,999,999
$1,000
$0
  • Earn up to 5.20% pa by depositing $1,000 in the previous month
  • No account fees
  • Easy access to your money
0.55% p.a.
Bonus rate of 4.95%
Rate varies on savings amount.
5.50% p.a.
$1,128
–
$0
$99,999
$1,000
$0
  • Deposit at least $1,000+ each month from an external source
  • Make 5 or more eligible transactions
  • Grow your savings balance each month
 Disclosure
  • Increase your balance by $200 each month to earn the maximum interest
  • No account keeping fees
  • No minimum balance
  • Interest paid monthly

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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.

Important Information and Comparison Rate Warning

Westpac's consumer confidence report coincides with the CEO of the Australian Retailers Association Paul Zahra saying at a National Press Club address that spending is key to economic recovery.

"Everything is interlinked. Confidence and certainty are intrinsically linked to spending. Spending is intrinsically linked to jobs," he said.

Mr Zahra also cited a Reserve Bank report that found household spending accounts for 56% of all national spending.

He said any retail spending trickle has been "underpinned" by support measures such as JobKeeper and increased JobSeeker.

"It is very concerning to imagine what will happen when the effect of these support measures wears off," he said.

"Recent research projected that the scheduled end of the JobSeeker payment after December will take the equivalent of $8.5 billion per year from the retail sector.

"When retail fails, it doesn’t just hit the national bottom line – it knocks our confidence; our consumer confidence and our mental health."

Mr Zahra in his address also cited research from the Office of Linda Burney MP (Federal, Labor), that revealed social security recipients spend approximately 58% of their payments on retail goods or services.

In Westpac's consumer confidence report, 'Time to buy a major household item' rebounded 16.3% to 105.1, but this is still 12.1% below the index a year ago.

Earlier in the month, AMP found average incomes were better off by $5,000 following federal government stimulus measures, while the household savings rate skyrocketed to nearly 20% - the highest level since 1974.

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Source: Tenor



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