Why 1.6 million Aussies have secret savings accounts
There are good reasons — and bad — why Australians are keeping quiet about hidden money
2 min
Millions of Australians admit to squirrelling money away in a secret savings account that their partners or family members don’t know about, new research shows. A Finder survey of 1,012 Australians found eight percent – the equivalent of 1.6 million people – have a secret bank account. A further four percent, or 900,000 people, admit to having one in the past.
The survey found women are more likely to set up a secret savings account than men. It is also a more prevalent trend among younger generations, with 26 percent of Gen Z respondents admitting to having a secret account either now or in the past, compared to 14 percent of Millennials and 10 percent of Gen Xers.
Finder’s money expert, Rebecca Pike, said secret saving is a widespread practice.
“Australians are stashing money away without their partner or family member’s knowledge. Individuals go to extraordinary lengths to hide income and savings from their partner or relatives,” she said.
Ms Pike said the reasons for setting up a secret stash of cash can vary. Some people may not trust their partners to spend joint finances wisely. Others want financial back-up ready and accessible if their relationship ends.
“When it comes to hiding savings from your partner, there are harmless reasons like being able to buy them presents without their knowledge, to more sinister ones like a gambling addiction or adultery,” Ms Pike said.
Regardless of the reasons, Ms Pike urged Australians to take advantage of the highest savings interest rates in decades and park their spare cash – whether secret or not – in a high interest–bearing account. The highest interest rate among 189 savings accounts profiled on Finder is 5.5 percent.
Separate Finder research shows 45 percent of Australians have less than $1,000 in their bank account and 70 percent do not have an emergency fund. Emergency funds are savings accounts where money is held over the long term to cover unexpected expenses, such as major medical bills. At a time when economic growth is weak and unemployment is expected to rise, four in 10 Australians say they only have enough savings to get by for a month if they lose their jobs tomorrow.
Finder recommends aiming to generate enough savings to cover three to six months of living expenses. This would allow enough time to find a new job or deal with a personal situation that required time off work. Finder’s head of consumer research, Graham Cooke, said if people put $100 per month into a savings account paying 5.5percent compounded monthly, they would generate $2,642 in savings within two years.
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For self-employed Australians, navigating the mortgage market can be complex—especially when income documentation doesn’t fit the standard mould. In this guide, Stephen Andrianakos, Director of Red Door Financial Group, outlines eight flexible loan structures designed to support business owners, freelancers, and entrepreneurs.
1. Full-Doc Loan
A full-doc loan is the most straightforward and competitive option for self-employed borrowers with up-to-date tax returns and financials. Lenders assess two years of tax returns, assessment notices, and business financials. This type of loan offers high borrowing capacity, access to features like offset accounts and redraw facilities, and fixed and variable rate choices.
2. Low-Doc Loan
Low-doc loans are designed for borrowers who can’t provide the usual financial documentation, such as those in start-up mode or recently expanded businesses. Instead of full tax returns, lenders accept alternatives like profit and loss statements or accountant’s declarations. While rates may be slightly higher, these loans make finance accessible where banks might otherwise decline.
3. Standard Variable Rate Loan
A standard variable loan moves with the market and offers flexibility in repayments, extra contributions, and redraw options. It’s ideal for borrowers who want to manage repayments actively or pay off their loans faster when income permits. With access to over 40 lenders, brokers can help match borrowers with a variable product suited to their financial strategy.
4. Fixed Rate Loan
A fixed-rate loan offers repayment certainty over a set term—typically one to five years. It’s popular with borrowers seeking predictability, especially in volatile rate environments. While fixed loans offer fewer flexible features, their stability can be valuable for budgeting and cash flow planning.
5. Split Loan
A split loan combines fixed and variable portions, giving borrowers the security of a fixed rate on part of the loan and the flexibility of a variable rate on the other. This structure benefits self-employed clients with irregular income, allowing them to lock in part of their repayment while keeping some funds accessible.
6. Construction Loan
Construction loans release funds in stages aligned with the building process, from the initial slab to completion. These loans suit clients building a new home or undertaking major renovations. Most lenders offer interest-only repayments during construction, switching to principal-and-interest after the build. Managing timelines and approvals is key to a smooth experience.
7. Interest-Only Loan
Interest-only loans allow borrowers to pay just the interest portion of the loan for a set period, preserving cash flow. This structure is often used during growth phases in business or for investment purposes. After the interest-only period, the loan typically converts to principal-and-interest repayments.
8. Offset Home Loan
An offset home loan links your savings account to your mortgage, reducing the interest charged on the loan. For self-employed borrowers with fluctuating income, it’s a valuable tool for managing cash flow while still reducing interest and accelerating loan repayment. The funds remain accessible, offering both flexibility and efficiency.
Red Door Financial Group is a Melbourne-based brokerage firm that offers personalised financial solutions for residential, commercial, and business lending.
For self-employed Australians, navigating the mortgage market can be complex—especially when income documentation doesn’t fit the standard mould. In this guide, Stephen Andrianakos, Director of Red Door Financial Group, outlines eight flexible loan structures designed to support business owners, freelancers, and entrepreneurs. 1. Full-Doc LoanA full-doc loan is the most straightforward and competitive option for …
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