How to Start Saving Money in Australia
A beginner’s guide to going from nothing saved to a steady habit. Last updated: 18 June 2026
Rates can change without notice. Last verified: 18 June 2026 (AEST). Please confirm details on the bank’s official page.
Starting to save can feel harder than it is. You don’t need a big income or a complicated budget — you need a goal, the right account, and a habit that runs on autopilot. Here’s how to set all three up in an afternoon, and which kind of account suits someone just starting out.
1. Set one small, specific goal
Saving sticks when it has a purpose. Start with a starter emergency fund — even a few hundred dollars — so an unexpected bill doesn't go on a credit card. A clear target ("$1,000 buffer by Christmas") beats a vague intention to "save more".
2. Open a separate high-interest savings account
Keep your savings apart from your everyday spending account so the money isn't there to dip into. A high-interest savings account pays far more than a transaction account, and the best ones have no monthly fees and no minimum balance — so there's no cost to starting small.
3. Automate a transfer on payday
Pay yourself first. Set up an automatic transfer into your savings account for the day after you're paid, so saving happens before you can spend it. Start with an amount you won't miss and nudge it up over time — consistency matters far more than the size.
4. Pick an account whose conditions you'll actually meet
Many accounts only pay their top rate if you jump through monthly hoops — a set deposit, a number of card purchases, or a growing balance. As a beginner, an account with no conditions (or a single easy one) is often the smarter choice, because missing the condition drops you to a tiny base rate. Better a slightly lower rate you always earn than a headline rate you keep missing.
5. Make it a habit, then grow it
Check in monthly, watch the balance climb, and increase your automatic transfer whenever your income does. Once your emergency fund is in place, point the same habit at your next goal — a holiday, a car, or a home deposit.
Ready to pick an account?
We’ve rounded up the accounts that suit beginners best — no minimum balance, no fees, and conditions you can actually meet — with the current rates pulled straight from our live comparison data.
Frequently Asked Questions
How much should I save each month when starting out?
There's no magic number — what matters is starting and being consistent. A common rule of thumb is to aim for around 20% of your take-home pay across saving and extra debt repayments, but if that's not realistic, start with whatever you won't miss and increase it over time. An automatic transfer on payday makes it effortless.
Where should a beginner keep their savings?
In a dedicated high-interest savings account, kept separate from your everyday spending account. It earns far more than a transaction account, your deposits are protected up to $250,000 per institution under the government's Financial Claims Scheme, and the money is still available if you genuinely need it.
Should I pay off debt or save first?
Usually build a small starter emergency fund first (so a surprise bill doesn't create new debt), then focus on clearing high-interest debt like credit cards, since that 'costs' more than savings earn. Once high-interest debt is gone, redirect those repayments into your savings.
Are there savings accounts aimed at young people?
Yes. Some banks offer youth or young-adult savers with a higher rate or easier conditions for under-35s — for example a dedicated under-35 account, or a lower monthly deposit hurdle for 18–24s. If you're in that age range it's worth checking these alongside the standard accounts.
Related guides
Information is general in nature and may change without notice. Not financial advice — consider your own circumstances and confirm current rates and conditions with each provider before applying.