the mozo blog

After all those years slogging it out as a frugal student, you’re finally cashed up after landing your first job. Now is the time to take care of your new found wealth, with our ultimate mix of tips for financially surviving your first job:

1. All work and no play makes you a dull kid!!
It’s your first job, so of course you’re going to want to spend that first pay packet. For the first month give yourself some freedom, just don’t get into debt! Go enjoy yourself. Shop around for some funky new clothes (chuck in some professional work attire), buy that cool iPad and hit up your trendy local bars and clubs. But have an end date in mind for when the spending stops and the savings begin (no more than one month).

2. Good habits, mean a great time on the weekend
Forget the idea that budgeting is all about what you can’t have. It’s actually about planning for what you can have! Put aside money for those ‘meh’ daily expenses like food, drinks and transport and for those living out of home, rent, groceries and utilities. Of course you’re still a young 20 something-year-old and need to have fun, so set aside some cash for the big things AKA Saturday nights out. Use Mozo’s budget calculator to get a personalised summary of your spending!

3. Avoid the big bite of ugly debt
But you’ve always wanted that super fast car. Well, before you go out and get that car loan, consider the amount of interest you’ll be paying on that hot ride. Car loan interest rates can reach up to 15%! A car only decreases in value, and the interest on top of this will mean you’re paying big bucks over the life of the car loan. One of the golden rules, according to Colin Williams from Humble Savers, is avoiding getting into debt for purchases that fall in value. He suggests saving for your big purchases, to give yourself time to really consider what you’re buying.

4. Build up your savings for something big
Set up a regular savings plan and you’ll be closer to that dream holiday with your BFF’s. Using Mozo’s Savings Goal Calculator we found that if you deposit as little as $25 a week into a savings account with an ongoing interest rate of 5%, you’ll end up with a balance of $1,337 after one year. Hello Koh Samui!

Establishing a regular savings habit will especially come in handy later on down the track when you decide to move out of home or buy your first pad. Most home loan lenders and landlords now require ‘proof of savings’ as part of the application process.

5. Put money into an emergency fund
While your savings is important to give you that much deserved pleasure time (mojitos at sunset), it’s wise to start a rainy day fund in case of an emergency. Make sure you choose a savings account that you can gain access to quickly because you never know when your car will need repairs or when you might need to move out quickly (escape that annoying housemate!). Most financial experts recommend putting aside around $1000.

6. Use credit cards with caution, seriously!
You may be able to buy those sexy Jimmy Choo shoes online from Bloomingdales but it doesn’t  mean you should! Credit cards could get you in real trouble before you even receive your first pay check. If you really need a credit card get one with a low standard interest rate and a low credit limit so you’re not tempted to spend big. To avoid the slap of credit card interest rates and fees, you can opt for using your own savings on a MasterCard debit card or Visa debit card.

7. Check when you need to start paying HECS
It’s so easy to finish uni and forget that you actually have a $20,000 debt. If you’re earning over 45K you’ll have to start making regular repayments. So make sure you inform your work, so you won’t have to pay anything back at tax time! Even if you don’t earn over this amount you can still reduce your HECS debt. If you make a voluntary repayment of $500 or more, you will receive a bonus 5% off the payment towards your debt.

Money is an essential part of enjoying life, so don’t expect to save every penny in your first job after uni. But get into some good financial habits and you’ll have the best of both worlds. Money for play time and money for the future!

I was given a challenge last week by the Mozo team to see how much I could save by using the Rounding Up savings method. And I can tell you this was the easiest challenge I’ve ever taken on because all I had to do was spend money.

The Rounding Up method is pretty simple and is an effortless savings solution for ‘someone’ who finds it difficult to save and I’m definitely that ‘someone.’ How it works is every time you make a purchase, you round up your transaction to the next dollar and deposit the excess into a savings jar (or a piggy bank!).

For example, today I strolled down to my local cafe and ordered a tuna sandwich and a skim latte totalling $10.50. I rounded up my purchase to $11.00, with $10.50 going to the friendly barista and $0.50 going into my savings jar.

Looking over my weekly spending from last week, I was pleasantly surprised to see that I spend way less than I thought and I’m a Gen Y! From Monday to Thursday my spending was pretty limited. Usually consisting of my daily return train ticket and takeaway lunch because I’m too lazy to bring my own. As would be expected, my spending increased over the weekend, thanks to a few friendly beverages.

Some lessons I learnt over my Rounding Up experiment week were that I eat far too much junk food and the little things count. My overall weekly spend was $384.40 and my total weekly rounding up savings was $30.60. This might not sound like a lot but over a year this will amount to $1621.80. That’s more than enough for my end of year holiday!

Of course, not everyone can be bothered to diligently round up and put money into a savings jar. Luckily a few financial providers now offer Rounding Up as an automatic feature, such as the St.George SENSE and the Bank of Melbourne SENSE. If this doesn’t tickle your fancy, try the Rounding Up experiment for just one week (like me!) then set up automatic weekly deposits to any high interest savings account, to the equivalent of the Rounding Up amount – easy!

The ultimate reason for using the Rounding Up method is to help you save with little effort. If you make a conscious effort to round up to the next dollar every time you make a purchase and put the excess into your savings jar (savings account) whenever/wherever possible, the rounding up feature will help you (yes you!) become a saver.

Here’s a closer look at my spending over the week and the daily Rounding Up. Keep in mind that I’m a recent uni graduate, living at home, otherwise known as a Kidult, so my spending won’t be as high as some of you out there!

Monday: Train ticket ($4.20), Thai stir fry ($8.50), gum ($1.95), bottle of water ($2.20)
Total spend: $16.85 Total Rounding Up: $2.15

Wednesday: Train ticket ($4.20), pork roll ($4.20), green tea (3.50)
Total spend: $11.90 Total Rounding Up: $2.30

Thursday: Train ticket ($4.20), chicken sandwich ($7.40), milkshake ($5.60), magazine ($4.95), bottle of water ($2.20)
Total spend: $24.35 Total Rounding Up: $2.65

Friday: Train ticket ($3.40), Thai food ($23.70), club/bar entry ($8.50), pretzels ($7.30), 2x vodka lemon, lime & bitters ($6.40 each), 2x vodka lemonade ($6.10 each)
Total spend: $67.90 Total Rounding Up: $5.10

Saturday: Can of coke ($2.50), hot chips ($5.60), sunscreen ($11.45), shampoo ($9.10), conditioner ($9.10), pedicure ($35.20), skirt ($34.50), thongs (29.05), movies ($21.50), popcorn ($9.10), large coke ($6.50), x3 Beer ($6.20)
Total spend: $192.20 Total Rounding Up: $9.80

Sunday: Coffee ($3.20), bacon and egg roll ($6.10), 2x DVDs ($6.50), salt and vinegar chips ($3.20), Maltesers ($3.20), can of coke ($2.50), petrol ($25.10), bottle of water ($2.20)
Total spend: $58.50 Total Rounding Up: $6.50

TOTAL WEEK SPEND: $384.40
TOTAL WEEKLY ROUNDING UP: $30.60

Every one has their own savings secret (cash under the mattress). What are some of your unique ways of savvy saving?

How many times have you been out and about and thought, “Ah, I don’t have any cash to pay for my train ticket or oh-no this Chinese restaurant doesn’t accept EFTPOS!” We’ve all been there and the only solution is to find the nearest ATM ASAP.

Unfortunately, we’re paying a big price for this ‘convenience’. ATM fees are on the rise and this year Aussies will pay a whopping $600 million in ATM fees! Here at Mozo we call it the ATM trap because people are stuck in an annoying situation where they need cash fast but their own financial provider’s ATM is nowhere to be found, or at least a good ten minute walk away.

The problem is the ATM market is not competitive because customers don’t have time or understandably can’t be bothered, to venture around town to find a fee-free ATM. On top of this there is no regulatory control of ATM fees and the Reserve Bank’s ATM reforms of 2009 have simply not worked.

The banks charge us $2.00 just to access our own cash if we’re not a customer, even though the cost of processing an ATM transaction is probably under $0.10. And if you think $2.00 is a hefty ATM fee, Customers ATM and Cashcard (the two main independent ATM operators) have just hiked up their ATM withdrawal fee from $2.00 to $2.50. Never heard of these guys? Well you’ve probably used one, as they own roughly 30% of all ATMs in Oz!

You’ll find independent ATMs in places like your local convenience store, where you buy the milk, often under the disguise of bank-branded ATM machines. Some of the culprits that allow independent providers to use their brand logo on ATMs with a $2.50 withdrawal fee are the Bank of Queensland, Suncorp, Bendigo and Citibank.

Another nasty sting, that you’ll find when using many ATMs is a balance inquiry fee. RediATM (the credit union ATM network) has just increased their fee from $1.00 to $2.00. So if you use another bank’s ATM to check your balance and then make a withdrawal, you could pay up to $4.50 for the privilege! To avoid the bite of balance inquiry fees, we advise using the internet, your smart phone or phone banking to access your bank balance.

At the end of the day, the best option for avoiding ATM fees is researching and using your own bank’s ATM network. For example, Westpac customers don’t get charged for withdrawing from St.George, BankSA and the Bank of Melbourne ATMs. CBA customers can also make fee-free withdrawals at Bankwest ATMs. And NAB customers can do the same at RediATMs.

While the two biggest ATM operators have jacked up fees, the Mozo rate chasers will be on the case, watching the banks closely to see if they follow suit and make $2.50 the new standard ATM fee for withdrawals.

Here’s 5 tips for avoiding nasty ATM fees!

1. Use your own bank’s fee-free ATM network
2. Withdraw cash with an EFTPOS transaction
3. Use NAB ATMs which charge $1.50 per withdrawal and $0.50 per balance inquiry
4. Check your balance online, on your mobile or over the phone
5. Get a bank account that gives you fee-free withdrawals everywhere, like the ING Direct Orange Everyday Account (for withdrawals of $200 or more).

Want to learn more about the ATM fee trap? Take a look at our awesome ATM infographic!

Who doesn’t have a high interest savings account? I’m guessing most of you do. The fact is, many high interest savings accounts offer awesome bonus intro rates up around 6%.

But what you might not be aware of is the stand-out 6% intro rate you have signed up for could change over the course of the 4-6 month intro period depending on your savings account. What you’re signing up for with many of the high interest savings accounts isn’t actually the advertised intro rate fixed for the entire intro rate period but a fixed “bonus interest” rate that gets added to the savings account’s ongoing variable interest rate.

It’s all in the wording used by the financial providers clever, or shall we say stealthy marketing team. The words “variable” or “up to” that are placed in tiny writing next to the large font of the advertised intro rate will generally mean, “yes, you could earn up to this amazing rate but it could change!”

For example, NAB markets its iSaver intro rate as a high 5.50% special variable rate for the first four months. But the fine print reveals, the 5.50% special intro rate is actually the 4.15% standard variable rate plus a bonus 4 month fixed interest rate of 1.35%.

So if the RBA decides to cut the official cash rate by 25 basis points, your financial provider could follow suit and drop the ongoing variable interest rate of your savings account. In the case of the iSaver account, this will mean that instead of receiving that amazing 5.50% intro rate for the first four months, you’ll now only receive a 5.25% bonus intro rate.

We should also point out that variable intro rates will work in your favour if rates go up but this hasn’t been the recent trend with savings accounts.

While bonus intro rates can be a great incentive to switch accounts, what you should really pay attention to is the ongoing standard variable rate because a savings account with a higher ongoing rate will pay more interest in the long term. For example, with a $5000 balance over one year, you will earn 20% more interest on the UBank USaver, which has a high ongoing standard variable rate of 5.41%, than the NAB iSaver which has a high intro rate of 5.50% but a much lower standard variable rate of 4.15%.

Here are 3 savings accounts with top-notch high ongoing interest rates, with some conditions to keep in mind:

Not happy with your High Interest Savings Account? Compare the market on Mozo and find the ultimate savings account for you.

The Mozo Answers forum has been buzzing recently with questions about credit card cash advance rates. Such as “what is a credit card cash advance rate?” and “are cash advances a good idea?”

Trying to decipher all the mumbo jumbo that credit card providers use can give anyone a headache. So lets keep things simple, with a quick rundown on credit card cash advances:

What is a cash advance? A cash advance is a feature on a credit card which allows you to withdraw cash from an ATM or over the counter at a bank. It’s designed to help you make ends meet for a short period of time. We emphasise short!

Why would I need to use a cash advance? A credit card cash advance may be necessary in certain situations. You may need to pay for something in cash and your paycheck may be late or there has been an emergency while you’re overseas and you need cash fast. The reasons are endless…but make sure you can pay it all back – fast!

Why-oh-why is the interest rate so high? Ever heard the saying “there’s no such thing as a free lunch?” Well this is certainly the case with cash advance rates, as the convenience of instant cash comes with the whiplash of a high cash advance rate. Using our credit card comparison tool we found that of the 181 credit cards in our database only 20 offer cash advance rates under 15%. The lowest cash advance rate is offered by Community First McGrath Pink Visa at 9.99%, while the highest is GE Money GO MasterCard with a jaw droppingly high cash advance rate at 29.49%.

Is it a good idea to use cash advances? In most cases it is definitely NOT a good idea. As easy as it is to simply go to the ATM and withdraw cash from your credit card, the high interest rate is just not worth it. Only use the credit card cash advance feature if you know you have the option to pay your balance in full.

5 cash advance catches to watch out for:

1. There’s cash, then there’s cash! You may be surprised to learn that credit card cash advance rates don’t just apply to instant cash withdrawals from an ATM or branch. Other ‘cash’ payments like money orders, lottery tickets, any gambling money withdrawals and traveller’s checks may be considered a form of cash advance by your credit card provider. Be careful or you could be slapped with the high interest rate without knowing it.

2. Hidden fees: Most credit cards will have fees attached to cash advances on top of the high interest rate. This may be a percentage of the amount you are withdrawing of around 2% or a flat fee ranging from $1.25-$5 per advance.

3. No interest free days: You might be thinking, “but my credit card has 44 interest free days.” Unfortunately this usually doesn’t include credit card cash advances, which means you’ll be accumulating the high cash advance interest rate straight away. And that will hurt when your bill comes.

4. Cash advances are paid last: To make matters worse, most credit card providers require you to pay off the full balance amount due on the credit card before you pay off the cash advance interest. So you’ll be stuck accumulating that high interest until you’ve paid off everything else.

5. Low interest credit cards with high cash advance rates: Low interest credit cards are great for your everyday purchases, however don’t get the standard interest rate confused with the cash advance rate. While the standard interest rate may be as low as 10%, cash advance rates will usually be much higher, some can be as high as 22% on a low interest credit card.

It’s not all bad…Using our credit card comparison tool we’ve picked out a few low interest credit cards that also have low cash advance rates. And here are the stand-outs:

NAB is leading the way with this reform, as all NAB credit cards already pay off the highest interest first.

On Mozo Answers we’ve had a lot of questions about Visa payWave and MasterCard PayPass credit cards. As more and more providers are making “tap and go” a mandatory feature of credit cards, it’s important to know what it’s all about.

A common query that has popped up on our forum is around security and cover, such as “am I protected against theft” and “am I covered for fraud?” These are valid concerns and we’ve decided that it’s about time those lingering questions about “tap and go” credit cards are answered. Below are some of the most popular queries in regards to payWave and PayPass credit cards:

What is payWave and PayPass?
Almost all new credit cards come with either the Visa payWave or MasterCard PayPass feature. It’s a simple way of purchasing items under $100. You can either tap or hover your credit card up to 4cm away from the terminal and your transaction is processed without a pin or signature.

A lot of retailers are taking on this new payment method, to reduce waiting queues and cash handling. At the moment many of the large outlets have the “tap and go” option, such as Bunnings, JB Hi-Fi, Caltex, 7-11 and McDonald’s (and many more).

How it works: Visa payWave and MasterCard PayPass credit cards allow you to “tap and go” due to the embedded near-field communication (NFC) chip, which transmits your information to the POS terminal. There is also a radio antenna embedded into the credit card that sends radio frequencies, allowing contactless payments.

Is it secure?
It won’t be long until you have your first experience using a “tap and go” credit card. You’ll enter your local 7-11, go up to the counter and tap your credit card against the POS terminal, without a pin or signature. And you might ponder is this really safe?

There are several precautions credit card providers have put in place to protect you from any theft or fraud:

• It has to be up to 4cm away from the reader, to ensure you don’t accidentally pay for another person’s transaction
• The same transaction cannot be put through twice due to a unique authentication code for each sale
• All Visa payWave and MasterCard PayPass credit cards use secure encryption (cryptographic key) technology, which gives you data protection and transaction security
• It is always in your hand as the transaction is processed
• “Tap and go” credit cards use the same network as swipe credit cards

It’s unlikely that any crim can do considerable damage using the “tap and go” option of payments under $100. However it’s important to be aware of your spending, by checking your transactions regularly and informing your bank of anything out of the ordinary. Most thieves will act in the first 48 hours, so the quicker you catch them out, the better.

Am I covered?
All the credit cards we looked at with Visa payWave and MasterCard PayPass are covered by a zero liability policy, which means you are protected against unauthorised transactions or fraud, with 100% reimbursement.

Most of the credit cards provide protection for in-store transactions, online transactions, phone transactions, and overseas and domestic transactions. It’s important to check your monthly statement for any fraudulent activity because some providers state that it has to be reported within a reasonable period of time (and this can vary with providers).

Watch out for exclusions of cover! Some zero liability policies don’t provide cover for ATM and Eftpos transactions.

Can I disable the paywave/pass feature?
Unfortunately, the short answer is no. You can’t disable the payWave or PayPass feature on your credit card and most replacement credit cards come with the feature.

It is a reality that the “tap and go” credit card option is going to be used in most retail outlets in the future. Did you know there’s even going to be a credit card released that you can use to “tap and go”? As technology changes the Mozo team is here to give you the facts. If you still have any queries about payWave and PayPass credit cards check out the Mozo credit card payWave and PayPass guide.

Mozonians are always looking out for great deals or ways to save money! And we all know that travelling isn’t exactly cheap. So it’s important for any savvy traveller to be aware that many credit cards include free international travel insurance. And yes, there are usually annual fees and interest rates but the benefits can be worth it!

Team Mozo has poured over five different gold credit card insurance terms and conditions (not an easy task), to give you all the info you need to know about gold credit card travel insurance.

Below are the gold credit cards we looked at:

St George Gold Low Rate credit card
NAB Gold credit card
Commonwealth Gold Low Rate credit card
Bankwest Breeze Gold credit card
AMEX Gold credit card

Who’s covered

Bring your family! In all five gold credit cards the card holder, spouse and dependent children are covered. However, there are certain eligibility requirements to keep in mind.

Eligibility

All the gold credit cards we took a look at require some of the travel expenses (travel ticket, accommodation or itinerary items) to be paid on the gold credit card. Keep in mind there is also a minimum amount to be paid on the credit card per person travelling to ensure they’re covered.

The AMEX Gold credit card and the St George Low Rate credit card both require you to purchase each persons return overseas travel tickets on your gold credit card prior to leaving Australia.

Not all credit card travel insurance is linked to airfares! The NAB Gold credit card allows you to pay a minimum of $500 per person in general prepaid travel expenses, accommodation cost or land tour costs to be eligible for coverage.

You can also pay for accommodation on the Commonwealth Bank Gold to meet the eligibility requirements. It’s a bit pricey though! A minimum of $950 has to be spent on each return travel ticket or other expenses (accommodation, itinerary items). If you choose to go with the airfare only option they do have an alternative clause, where you can pay 90% of each persons return overseas ticket to be covered.

Stand-out:

The lowest eligibility requirement is the Bankwest Breeze Gold credit card, as only 75% of your return travel ticket has to be paid on the credit card for insurance.

Excess
Paying excess usually can’t be avoided if you need to make a claim! St George Gold Low Rate, NAB Gold and Bankwest Breeze Gold all have a general excess of $200. However, with each gold credit card there are some items that are exempt.

The St George Gold Low Rate and the Bankwest Breeze Gold credit cards both have no excess for loss or damage to personal property (travel documents, credit cards, emergency replacement of clothes and toiletries).

NAB has quite a few items that are excluded from excesses: travel delays, resumption of overseas journey, return of rental vehicle if you are unwell, baggage and personal items, fragile items, and wear and tear from atmosphere or climatic conditions. Phew!

On the other hand, the Commonwealth Gold Low Rate has a general excess of $250 for things like medical and like the other gold credit cards there is no excess for damage to personal items. There are smaller excesses of $150 for unexpected cancellation of travel arrangements and other unexpected expenses, resumption of journey and special events.

AMEX Gold has specific excesses according to what is to be covered. Medical cover has an excess of $500, baggage and personal $100 and your laptop $250.

Expiry Date
St George Gold Low Rate, Commonwealth Gold Low Rate, Bankwest Breeze Gold and AMEX Gold all have a 3 month expiry date. This means that if you’re planning to travel for more than three months consequently you may have to purchase stand-alone travel insurance because the majority of gold credit card travel insurances cannot be extended.

Stand-out:

The only gold credit card out of the five to have more than 3 months cover is NAB Gold, with an expiry date of 6 months. That can make quite a difference if you’re going on a world cruise!

Medical
Medical insurance is one of the most important covers, especially in countries like the US where medical insurance is a must. Thankfully, there is unlimited medical cover on the St George, Commonwealth and Bankwest Breeze gold credit cards and NAB Gold covers actual incurred costs.

All the gold credit cards state that they will not cover pre-existing medical conditions, such as asthma or diabetes. And remember the devil’s in the detail! There are several terms and conditions to watch out for in regards to medical insurance. Many credit cards will not provide medical coverage for special sports or extreme sports, so if you’re thinking of going skiing and conquering the black slopes, be sure to check your coverage!

The Amex Gold has a $2.5 million limit on medical cover. We know this might sound like a huge amount, but if other gold credit cards are offering unlimited cover, it doesn’t quite stack up. Especially if you have a freak accident, that requires expensive medical procedures. You might be a bit huffed if the $2.5 million doesn’t cover the costs!

Baggage and Property
St George Gold Low Rate and Bankwest Breeze have the same cover for baggage and property, such as $10,000 per person and $15,000 for the family. The Commonwealth Gold Low Rate has slightly higher cover for a family with $20,000 but still capped at $10,000 per person. The NAB Gold has the highest cover for an individual with $15,000 per person and $20,000 for a family.

Stand-out:

AMEX Gold has the same cap of $10,000 in total overall per person. But the great thing is that there isn’t a family limit. So if you’re travelling with your partner and two children as a family you’ll be covered for $40,000.

While travel insurance differs between gold credit cards, all in all most coverage stacks up well and if you find the right one for you and your trip, there’s certainly some gold to be found! Stay tuned for our next blog when we put platinum credit card travel insurance to the test!

As 2012 is fast approaching and we are getting ready to sing in the New Year, we thought it was a great time to give you our picks of the best (and worst) banking products of 2011. The Mozo team has scoured the market with a fine-tooth comb, patiently reading product disclosure statements and comparing interest rates to bring you the results.

Some top stand-out products have been released throughout the year, with many bank accounts, home loans and credit cards receiving a big thumbs up. However, with every great product, a not so great product slips its way into the market. And for those that don’t make the grade, the Mozo team has our wooden spoon ready!

Best Bank Account
We love anything fee-free! Launched this year, the Citibank Plus Transaction Account ticks all the boxes for a great everyday banking account. The account has no monthly account fees, and fee free ATM withdrawals within the Citibank network in Australia which includes Citibank, Westpac and St George ATMs. But the real game changer is that this bank account has no overseas ATM or purchase fees (these can be as high as $5 per transaction with some accounts) which makes this a great bank account for jetsetters and homebodies alike!

Some banking providers missed the fee-free memo this year! The Wooden Spoon Award goes to HSBC for its Savings Cheque Account. Not only are customers charged a $7.50 account fee (waived if the balance is always over $1000), the account only has six free ATM and Eftpos transactions a month, after which you are charged $2 for every other transaction. Ouch!

Best High Interest Savings Account
And the best savings account goes to… RaboDirect! Unlike other banks who only offer high interest rates for the first few months to new customers, RaboDirect’s High Interest Savings Account rewards savers with a competitive ongoing interest rate of 5.75% (with balances of up to $200,000). The savings account has other great features such as no minimum balances and no account fees.

The normally fantastic Bankwest has landed itself a Wooden Spoon Award for its Regular Saver Account. The savings account has a high interest rate of 6.50%, but the fine print reveals that you can only get this rate by depositing between $50 and $500 each month. What’s more, after a year the entire balance is swept to a nominated account so you have to start building your balance again!

Best Rewards Credit Card
This year our vote goes to the Qantas Amex Discovery Card for the best rewards credit card. It is one of the few cards that will earn you 1 Qantas Frequent Flyer point for every $1 you spend on the card and it has no limit on the number of points you can earn in a year.  But best of all the Qantas Amex Discovery Card has no annual fee. When you consider most rewards cards have annual fees of around $150 this is a great saving which you can put towards your holiday spending.

Best Credit Card
Aussies love to travel and with the increased popularity of online shopping, finding the best credit card for you can make a huge difference to your finances. The 28 Degrees MasterCard has some great features for savvy travelers and shoppers which puts it at the top of our list:

- 100% free to use in Australia and overseas
- No overseas transaction or foreign currency conversion fees
-You can put credit in it before you start your trip.

Not to its usual great standard, Macquarie Bank increased its RateSaver and Gold credit cards by 0.25% after the RBA cut in November earning it our Wooden Spoon Award.

Best Mortgages
Loans.com.au and State Custodians are small players offering big savings in the home loan market! By not using brokers they’re able to offer competitive rates direct to borrowers – up to 0.75% below the average standard variable rate . You’ll have to spend time filling out the paperwork but the savings you’ll make will be worth it.  For example, if your current home loan is with Westpac on the Rocket Repay Home Loan at 7.61% ($300,000 over 25 years), you can save over 70K by switching to these low rate providers.

The ‘fixed rate revert rort’ is a sneaky tactic by banks. They provide low fixed rates for the first few years and then revert to high variable rates once the fixed period is over. Citibank gets our wooden spoon for its fixed rate loans. For instance its 3 year fixed rate of 5.94% reverts to 7.77% for the rest of the loan.

Finding the right product in 2012
With so many products in the market, the search for the right credit card, bank account or home loan may seem daunting but Mozo has all the tools you need to tease out the “gotcha’s” and find the best deal! Head to Mozo now >>>