News Archive for August 2020

In the business world, not everyone has the luxury to wait for extra finance. Luckily if you need that cashflow boost ASAP, whether to purchase stock or pay your suppliers, Commonwealth Bank may have a solution. This week, the big bank launched a new online platform that promises to give its customers access to business loans in near real time. With BizExpress Online, eligible CommBank small business customers can apply for loans of up to $50,000, via their Netbank or the CommBank app. Once an automated lending decision has been made, funds will arrive in their account in as little as 20 minutes. According to CommBank’s business banking group executive, Mike Vacy-Lyle, BizExpress Online builds on an earlier product that was introduced to speed up the lending process.“When we launched ‘BizExpress’, the aim was to provide a simpler and faster lending experience for our small business customers, with same day decisions and funding within a week,” he said. “Our latest investment in the new digital version makes it even easier and quicker for our customers to get the financial support they need.”Right now, BizExpress Online is only available with business lending under the government’s SME Loan Guarantee Scheme. Under the first phase of this scheme, 50% of all new three-year unsecured business loans of up to $250,000 issued by participating lenders until 30 September 2020 will be guaranteed.“Small businesses need quick access to cash flow to keep them going through these tougher times - and BizExpress Online aims to provide them with this,” Vacy-Lyle said. This funding also comes with waived fees over the life of the loan and deferred repayments for the first six months.CommBank expects BizExpress Online will be expanded to other non-scheme loans and products in the coming months.

With Victorians in lockdown to stop the spread of Covid-19, small businesses may once again be left feeling vulnerable. To help, the Essential Services Commission (ESC) has announced it would be introducing a new mandatory guideline that asks retailers to provide assistance to small businesses experiencing financial stress. The guideline is expected to come into effect on 1 October 2020 for six months, however may be extended should it be necessary. “While Victoria already has the most comprehensive safety net for residential customers in the country, we have added additional protections for customers who are behind on payments,” said Commission chair, Kate Symons.“There’s a new requirement for retailers to provide practical, hands on help to customers to apply for utility relief grants as well as expanding a requirement to offer price checks for anyone who has fallen behind on their energy bills.” And while there was no set definition of ‘financial stress’ in the ECS’s guideline document, retailers still have a range of relief assistance options they must extend to small businesses. Some of the assistance retailers must provide small businesses at a minimum include:

Around 80% of Aussies are now concerned about the impacts of climate change, that’s according to a 2019 report from The Australia Research Institute.

All in this week’s best banking news recap: editor’s pick.

Owned by insurance giant Suncorp, online insurer Bingle Go has this week announced that it will be piloting an innovative new app-based insurance, for people who don’t just rely on their car to get around.

At some point, every Australian might find themselves shopping around for a financial product, such as a home loan or a credit card. And while familiar brands like the Big 4 (ANZ, NAB, CommBank, Westpac) may be front of mind, Roy Morgan research shows the happiest customers actually belong to mutual banks or credit unions.For context, mutual banks are credit unions that have gone through an application process with the Australian Prudential Regulation Authority (APRA) to call themselves a ‘bank’. Besides that, there’s not much difference between the two.Right now over 30 mutual banks operate in Australia - a sector made up of more than four million Australian consumers. And for several years now, they’ve maintained the lead on customer satisfaction, according to Roy Morgan data.In May 2020, mutual bank satisfaction levels hit a high 89.2%, a slight increase from a year ago. Meanwhile the four majors lagged behind at 77.2%. So what’s the magic behind mutuals? Mozo’s banking expert, Peter Marshall says it comes down to their personalised service and strong community focus. “Mutuals and credit unions tend to be smaller than a lot of big traditional banks and more focused on a geographic area or a type of customer, so they can be more in touch with their customers’ needs,” he says.“There’s also that feeling of membership that they give you, because you have become a member of a mutual or credit union to use their product. “A lot of people like that they’re not just another number.”

Haven’t got a whole lot of cash to splash this Father’s Day? Want to cut unsustainable consumption? Consider gifting dad one of these more affordable, “Covid-friendly” items or experiences on September 6.

ME Bank has joined the swelling ranks of lenders making cuts to short-term fixed home loan rates by reducing a number of offers between 20 to 40 basis points.

When it comes to saving and spending habits, 2020 has been a rollercoaster year of change for many. Australians have had to rethink budgets to manage income loss caused by the pandemic, turn to online shopping during lockdowns and even abandon cash to help stop the spread of COVID-19. In light of this, you might be looking for new ways to make your banking more efficient and help you save for rainy days to come. As more Aussies head online for their banking needs, we’ve laid out some of the innovative banking features to help you make more out of your cash in 2020.

A newly released report on the NSW bushfire inquiry suggests better risk management to help keep premiums down, but does not address issues of standardisation in home insurance terms.

Although many Aussies believe life will never return to the way it once was, the Australian Competition and Consumer Commission (ACCC) is using it as an opportunity to give the energy market a refresh. On Wednesday, ACCC chair Rod Sims said that Australia has hit a “tipping point” for energy affordability. Speaking at the Energy Users Association of Australia (EUAA) 2020 National Conference, Sims said there’s “an opportunity to reset affordability and competition in energy markets” for large energy users like businesses. “This dreadful pandemic we are all experiencing has caused significant personal hardship to many Australians as well as enormous economic disruption for businesses, small and large,” he said. The regulatory body explained that commercial and industry users have had their electricity bills skyrocket by 61% between the 2007/08 and 2018/19 financial year. For large energy users, wholesale electricity prices make up to 53% of their annual bill, compared to one-third for residential users. So with the good news that wholesale electricity and gas prices are their lowest point in five years, businesses will have the chance to come out on top within the following year. In early June, Mozo reported on the new energy reform called the wholesale demand response, which is set to come into effect in October 2021. Under the wholesale demand response, larger energy users like businesses choose to reduce their electricity consumption during peak periods and in return, will receive an incentive, such as a credit toward their annual bill. According to Sims, this new mechanism will do more than just give Aussies businesses a leg up. The wholesale demand response is also expected to reduce costs and increase competition. “The reduction in wholesale prices is positive and, together with large energy users continuing to be active participants in both the energy market and non-energy mechanisms, this is the opportunity to restore Australian businesses’ international competitiveness,” said Sims. If your small business is still up and running during the Covid-19 pandemic, there are a few things you can do to help reduce your energy costs. You can check out our small business energy savings tips page for more information.Or if you’d like to make the switch to a better deal, head on over to our energy comparison tool get started.

Itching to get your hands on a fresh set of wheels? Unless you are sitting on a whole bunch of savings, you may need a car loan to help you get there. There are two main types of car loans: a new car loan and a used car loan. Depending on whether you want a brand new or pre-loved ride, this will determine what sort of loan you take out. So where do car loan rates sit in August 2021? According to the Mozo database the average new car loan rate sits at 6.21%. Meanwhile the average used car loan rate sits at a slightly higher 6.71%. But who wants just average right? Check out some of these killer car loan deals and you could be hitting the road sooner!

All in this week’s best banking news recap: editor’s pick.

In life you’re likely to experience a lot of ‘firsts’, like your first car, apartment, or holiday overseas. But one thing you might not give much thought to is the first time you apply for a credit card.

There are obvious perks to choosing a shorter personal loan term - it takes you less time to pay down your loan plus you pay less in interest over the life of your loan. But what if you could also receive a lower interest rate for choosing a shorter term? Well, the good news is, with some lenders you can.Last week, personal loan lender SocietyOne introduced a tiered pricing system that does just that. Not only does it reward customers for their good credit history but also gives them an extra pat on the back for choosing a shorter term. On it’s Unsecured Personal Loan (Fixed), the lender offers a competitive 7.99% (9.25% comparison rate*) on it’s 5-year loan term. However, for customers that choose to borrow for 2 or 3 years, they offer a low 6.99% (9.00% comparison rate*). Want to find out more about this loan? Read below!

Five Reserve Bank rate cuts in the past 14 months have accelerated home loan rate cuts across the board, yet only a fraction of Australian households have taken up the opportunity to refinance their mortgage.

Let’s consider car insurance - if you own wheels you’ve just gotta have it! But here at Mozo we try to have a little fun along the road of organising premiums, excess and optional extras.Since many of us have been catching up on classic cinema during the pandemic, we assessed some beloved silver screen cars and outlined the kind of insurance they might need.From bare-bones cover to kingly comprehensive car insurance, check out what these famous fictional engines should be covered for. It might give you some haggling hints for when you’re renewing your own policy, or even inspire you to change things up in the motor department.

Although our electricity usage may have skyrocketed during the Covid-19 lockdown, different strands of research have shown that wholesale electricity prices are on the decline. More recently, industry researcher IBISWorld found that because wholesale prices have dropped to their lowest in five years, the success of coal-fired power stations has dropped, while investment in renewable generators is on the up. “The closure of businesses across the economy has contributed to a sharp downturn in electricity demand from commercial markets,” said IBISWorld senior industry analyst, James Caldwell. “At the same time, growth in the number of Australians working and studying from home has contributed to a strong upswing in electricity demand from residential customers.” According to Caldwell, electricity demand is estimated to have fallen by 4% during the 2019/20 financial year - 2% of that figure can be attributed to the Covid-19 outbreak and the remaining 2% is due to an increased uptake in small-scale solar systems. IBISWorld also predicts that households could see a difference in their annual bill, as the drop in wholesale prices will bring on a 15% decline in revenue for the electricity market.

Whether you’re paying a higher interest rate than you’d like or your current home loan doesn’t offer the features you need, it would be a mistake to stick with it. Unfortunately, many Australians are unaware of their options and wind up doing just that. If you feel your home loan isn’t up to scratch, here are a few things you can do.

From questionable hair choices to finding rotten food in your locker, high school memories stay with us. But what about the bits you’ve left behind, like economic lessons? According to a Household, Income and Labour Dynamics in Australia (HILDA) survey in 2019, fewer than half of Aussies could correctly answer five basic financial literacy questions. So, to get you back on track, here’s a quick crash course on the top five most important things you should know about your finances.

Things are looking up for Aussies sending money overseas to New Zealand as AUD/NZD exchange rates hit a two-year high last week.

Australian neobank 86 400 has announced it will be offering tiered variable rates for home loan customers, giving those with a lower LVR (Loan to Value Ratio) the chance to access cheaper rates.The new pricing system means borrowers with a deposit of at least 40% of a property’s value can pay as little as 2.59% p.a. (2.87% p.a. comparison rate*). According to 86 400’s lending product lead, Melissa Christy, this will go a long way towards freeing up customers’ finances."We built 86 400 to help Australians take control of their money. By reducing the variable loan rates for customers with more equity in their property, we are helping our customers do more with their money,” she said.The new rates came into effect 20 August 2020, and will be available to all customers, including existing ones. The tiers and accompanying rates for owner occupiers making principal and interest repayments are listed below:• LVR ≤ 80%: 2.74% p.a. (3.02% p.a. comparison rate*)• LVR ≤ 70%: 2.64% p.a. (2.92% p.a. comparison rate*)• LVR ≤ 60%: 2.59% p.a. (2.87% p.a. comparison rate*)Investors will also be able to take advantage of the new pricing system, with rates as low as 2.89% p.a. (3.17% p.a. comparison rate*) available. Below are the price bands for investors making principal and interest repayments:• LVR ≤ 80%: 3.09% p.a. (3.36% p.a. comparison rate*)• LVR ≤ 70%: 2.99% p.a. (3.27% p.a. comparison rate*)• LVR ≤ 60%: 2.89% p.a. (3.17% p.a. comparison rate*)While rate discounts by LVR are nothing new, they’ve become more popular in recent months as lenders look to peel away low-risk refinancers from competitors. A lower LVR means borrowers are less likely to enter negative equity territory and be forced to sell during a downturn. 86 400 is also offering $2,000 cashback on settlement for eligible borrowers. The offer is available on applications of $250,000 or more, so long as they are received by 31 August 2020 and settled by 31 October 2020.For more information, read our review for the 86 400 Own Home Loan. And if you’re wondering how the rates on offer compare to others on the market, browse our home loan comparison page, where you’ll be able to filter your search by rate and type.

With Australia experiencing a second wave of Covid-19, nearly half of Aussies are worried about catching public transport, according to a recent survey by McKinsey.

If you haven’t noticed already, fixed home loans are well and truly back in vogue in 2020, largely replacing the spot previously occupied by variable home loans in offering the sharpest rates on the market.

Fifty-two per cent of first home buyers have delayed their plans to purchase property due to the COVID-19 pandemic, according to new findings from Gateway Bank. Meanwhile, 16% have put their plans on hold indefinitely.“As more people are being forced to spend their deposit savings on basic living expenses, the prospect of buying a property is now even more elusive,” said Gateway Bank chief executive officer, Lexi Airey. In a survey of 700 Australians hoping to buy their first home, Gateway Bank found that half have been forced to dip into their deposit savings. Of this group, 45% did so to cover day-to-day expenses, while 17% used their savings to help a family member experiencing financial stress.Perhaps most shocking, 16% of potential first home buyers admitted to draining most of their deposit in the months since the pandemic struck.For many, recovering lost savings won't come easy, especially at a time when job insecurity is on the rise and ties to employment are only being preserved through government largesse.In fact, according to the research, 56% of first home buyers believe it will take them an additional one to three years to save up a deposit, while 25% expect to be saving for at least another three years.

Despite fears of another Aussie dollar crash, the AUD has continued to hold its ground over the past few weeks and gain strength against the US dollar.

Everybody loves a little extra money in their pockets, and cashback offers have been flying through the door with providers looking for enticing ways to reward new customers during the pandemic down-turn. Many of them are offering generous rewards for things like switching your home loan, opening a new bank account, grabbing a new credit card and even taking out a new car insurance policy. With cashback offers reaching the thousands, now might be time to consider finding a bargain and being rewarded for doing so. To help you cash-in the bonuses, check out our round-up for this month and see where you could score a little spare change.

In response to growing credit quality risks, banks have made some pretty big changes to the way they assess mortgage applicants. Some have begun asking for larger deposits. Others have ruled out lending to casual workers. All are exercising a lot more caution when dealing with those from vulnerable industries.So while interest rates are at record lows and property prices are beginning to dip, for many the path to home ownership now contains more obstacles than ever. Below, we look at some of the main ways banks and lenders have tightened their lending practices, and what you’ll need to do to get your application over the line.

2020 has been a tough year for many Aussie businesses. Three months since COVID-19 was first declared a pandemic, 47% were still reporting falls in revenue, according to Australian Bureau of Statistics (ABS) data released last month. But as parts of Australia begin to reopen and navigate a COVID-safe environment, the next big question is this: how can small businesses ensure cashflow issues don’t stop them from bouncing back with full force? For some, the answer may be the government’s Coronavirus SME Loan Guarantee Scheme. Under the first phase of this scheme, set to end 30 September 2020, the government is guaranteeing half of all three-year unsecured business loans of up to $250,000 issued by participating lenders. Under the second phase, running between 1 October 2020 and 30 June 2021, small to medium-sized enterprises (SMEs) can access even larger loans of up to $1 million and repay them over a longer period of five years. Prospa is one of the scheme’s 41 participants , alongside other non-bank lenders including GetCapital, OnDeck Capital and Spotcap. And it’s catering for the scheme and the tough climate businesses face right now with two new products: the Back to Business loan and the Back to Business Line of Credit. (Note: from 30 September onwards, these products are no longer be available.)With both products, approved businesses can receive funds of up to $250,000 in as short as 24 hours, and they also won’t need to worry about making any loan repayments for six months. Prospa’s co-founder and chief revenue officer, Beau Bertoli says the focus of Back to Business is to help small businesses not just survive, but thrive for the rest of 2020. “Of course there are a lot of viable businesses across the country who were hit hard by restrictions and now need cash flow support, but many are now starting to get back to business and plan for the future,” he says. “Our funding has helped these small businesses make upgrades to meet new sanitation requirements, revamp their websites and introduce online services, and even launch digital marketing campaigns.”“There are also businesses in essential services or particular sectors experiencing demand who want to seize growth opportunities while they can,” he adds.  “For example, with more Australians gardening and renovating, we’ve had fertiliser and tiling businesses with months of work lined up come to us for funds for extra stock and supplies.”

With the second Covid-19 wave underway, Aussies have pretty much resigned themselves to a travel-free 2020. Instead, Toluna’s ongoing Covid-19 Barometer shows that people across the country are focusing on spending locally and supporting small businesses in their area.

Australians have collectively withdrawn more than $31 billion in superannuation since the government introduced the early access super scheme, which aimed to help people manage financial hardship caused by Covid-19.But a new report has shown many may not be spending the cash injections – up to $10,000 accessible last financial year, with a repeat withdrawal available until December 31 – as intended, and others may not have needed the money to get by.No criteria or proof of hardship is required to access early super release through this scheme. The research from financial data and analytic company Illion shows 38% of people who accessed the money didn’t do so in response to a drop in income. A further 21% actually got a boost to their pay packet in addition to dipping into their super.Across both rounds of super withdrawal, a large portion have used the funds to increase spending, not simply maintain it. In the second wave, the report found 64% of this additional spend was on discretionary items like clothing, furniture, restaurant visits and alcohol.Essential spending is still in the equation, with Illion reporting this increasing from 22% to 24% across the two rounds of early super release.Overall, Illion has found women are more responsible spenders in this scenario, with a slightly higher proportion using it to pay off debt and cover essentials compared to men. Similarly, more men (10%) are spending this money on gambling compared to women (6%).

Australian corporate regulator ASIC has issued advice to mortgage lenders as the clock begins to tick down on the hundreds of thousands of home loans that have been deferred during the COVID-19 pandemic.

Aussies looking to save money on their home loan and earn $2,000 cashback into the bargain will be pleased to hear that Suncorp has extended its popular refinance cashback offer to give more borrowers the chance to switch and save before the offer ends on 30 September.

Lately I've been thinking about what it means to create emergency savings, especially as it keeps bubbling up in my Google searches. The idea of a 'rainy day fund' sits well with me at face value, but it also implies that a person has the flexibility to stash away cash. This is slightly problematic because clearly not everyone is enjoying such financial freedom right now. We know that in this current pandemic-focused world, some people are literally going from pay cheque to pay cheque. So, there actually isn't a rubber-band bound wad of notes under the mattress for these folks. Indeed for some, financial support is a far more realistic solution. This is worth calling out before we press on. We have written up some guides on such support for both individuals and businesses, so they're worth a read if you're interested.If you are fortunate enough to still have regular pay coming in, many online writers, including our own, point toward the value of emergency savings. So, what is that in reality?A recent New York Times article informed me that you can’t just save willy-nilly for an emergency fund, but rather must have a disciplined approach. Specifically, the author suggested saving a regular percentage of your pay or any windfall, like a tax refund. Then, put that little bit of money into a savings account to be used later on.This is what the motivated among us call a "savings goal". The point is that without a fixed visualised goal you'll never achieve the bare minimum saving needed for your emergency. Instead you'll procrastinate or forget. I've read elsewhere that we sometimes propose a savings target that's far too lofty. This can be intimidating, the same way it is to overcome a 3-0 football deficit at the half. Any good coach will tell you if you break the task down into smaller bits, the target will seem easier to hit. You’ll be more upbeat about actually achieving it.

With some Aussie states in partial or full lockdown, many shoppers are looking for contactless ways to get what they need. From groceries to furniture, makeup to clothing, there are plenty of ways to get your shopping to your door in a more convenient way.

Key facts from Mozo’s report:

As competition in the home loan market continues to heat up, NAB has cranked things up a notch. The bank’s move this week to slash variable rates for investors has made its offer the best among the big four.The interest rate for the NAB Base Variable Rate Home Loan now sits at 3.09% (3.09% comparison rate*) for investors with a loan-to-value ratio (LVR) of 80% or less and making principal and interest repayments. For context, LVR refers to the percentage of property value you’re borrowing from the bank. So if you’ve saved up a 20% deposit, then your LVR would be 80%.NAB’s five-basis point cut places it just ahead of ANZ’s rate of 3.12% (3.16% comparison rate*), available on its Simplicity PLUS home loan for investors with a maximum LVR of 80%. NAB’s latest rate reduction also further widens its gap with Westpac and Commonwealth Bank:

All in this week’s best banking news: editor’s pick.

While Aussie businesses are making small strides towards recovery, new data reveals many continue to struggle with overdue debt. Figures from digital credit agency CreditorWatch released this week show that fewer businesses defaulted on credit last month - July’s default figure was 13% lower than in June. July also saw companies take a shorter time to repay any money owed, with an average 8% decline in payment times recorded across the board. But CreditorWatch’s chief executive officer, Patrick Coghlan said these signs of improvement are modest at best. For one, payment times were still a staggering 224% higher last month than in July 2019.

Fintech lender Athena has rolled out a new batch of home loans with an innovative pricing system that lets borrowers access cheaper rates as they pay down their loan.

No matter the size of your savings bundle, you want to stash it in a savings account or term deposit where it can earn interest and grow. Right now, average rates for both types of deposit accounts are looking pretty grim. Mozo’s data shows the average ongoing savings interest rate is 0.82% p.a., with term deposits only just edging ahead at 0.95% p.a. for a one-year term.However, there are outliers with much more appealing numbers, especially in the savings account camp. So, you might want to start searching for a stellar rate. For example, young savers (18-29 year olds) can nab a market-leading 3.00% interest rate with the new Westpac Life account, while savers at any age will earn 1.65% p.a. on top of their savings with the ING Savings Maximiser (if criteria is met in both cases).But there is a catch: bonus interest that can be earned on these accounts caps out at $30,000 and $100,000 respectively. If you’ve got a large savings balance – perhaps you’ve recently earned money on the sale of a property or have received a redundancy payment – you’ll need to find a savings account that provides top features across your full balance. Check out a few potential contenders below which could cater to your higher balance needs. They’re all Mozo Expert Choice Award winners for 2020, so you know they’ve got our seal of approval.*

Finding a car insurance policy with all the features you need and want can be like parallel parking in torrential rain. You might think you’ve ticked everything off – checked your mirrors and your blind spot – but there could be hidden costs in the foggy fine print.Avoid driving blind as you seek out the perfect policy by considering these hard-to-find car insurance features. We’ve found providers offering them as standard in their comprehensive car insurance policies.

From building credit histories to being a lifesaver in emergencies, a credit card can be used for a number of reasons. And in some circumstances, having more than one can provide spending flexibility and freedom. But is owning multiple credit cards a recipe for financial disaster or a clever way to get more bang for your buck? We’ll tell you what you need to know.

These days, Aussies have more choice than ever before when it comes to borrowing money, and as everyone searches for faster, easier ways to control their finances, online lenders are emerging as real challengers to the big banks.There’s a lot to love about these digital dynamos, including fast online applications, super efficient approval processes and some killer low rates that can mean thousands of dollars in savings every year. Whether you’re buying a home, renovating your kitchen, planning an overseas trip or managing your business expenses, there’s an online lender to suit your needs.So check out the Mozo money editor's pick of some of the best for home loans, personal loans, and business loans...

Technology-led personal loan and car loan lender RateSetter has rebranded to ‘Plenti.’ For five years, RateSetter assisted 80,000 households by offering a range of competitive loan options. Now, the new ‘Plenti’ aims to help many more. Plenti chief executive officer, Daniel Foggo says the change in brand is a reflection of the company’s ambitions for the future rather than where they started.

Global fintech Revolut is launching its money app and card to the broader public today, complete with a unique set of features and a subscription scheme not yet seen in Australia.

The Australian Energy Market Commission (AEMC) says it will be going ahead with a recently proposed rule change to assist struggling energy retailers. At the start of June, Mozo reported on the (AEMC) announcement that it would be considering extending its relief support to energy retailers, as the rising number of customers deferring charges was causing financial strain. Under the rule change, energy retailers are permitted to delay some of their network charges for up to six months in order to stay in business and prevent a supply disruption for customers. According to the AEMC's acting chair, Merryn York, the decision will help prevent smaller players from shutting down and larger retailers from taking on more than they can manage. “We want to avoid the domino effect of multiple retailers failing because this would put immense pressure on the remaining businesses to service larger numbers of customers unable to pay their bills during the pandemic,” York said. “This could reduce choice and increase prices.”

So you’ve made the decision to purchase your own little piece of earth. No matter what stage of life you are at, there are two things to figure out:

This year’s restrictions have seen Australians spending a lot more time indoors. And with as many as 70% of us working from home at the height of lockdown, the quality of our internet has been thrown into the spotlight.But not all internet plans are created equally and there are massive opportunities to save just by shopping around. In fact, research from Mozo found that customers could be paying $710 less on their NBN plan by switching to a more competitive provider. “NBN is relatively new to most Australians so it can be hard to know what to expect in terms of pricing and quality,” said Mozo Director, Kirsty Lamont.“Each provider has a different network, so their download speeds will vary depending on your location, but essentially you could be paying 48% more for a service that offers the same download speed.”

As a direct result of the Covid-19 pandemic, the Australian travel insurance industry has seen a sharp decline in growth, a new report from GlobalData finds.

As the financial impact of the COVID-19 pandemic continues to hit Aussie families, many people remain concerned about what the future will bring.In fact, fresh Mozo research shows that 49% of Australians spend at least an hour worrying about their financial well being each day. Currently, 4 out of 5 people are feeling some level of concern about their finances, while 65% are uncertain about their future employment. “Covid-19 has presented a lot of financial uncertainty with unemployment hitting 7.4% in June and predictions it will reach 9.25% by December,” says Kirsty Lamont, Mozo Director. “While saving is a priority, for many Australians there isn’t quite enough to come and go on - half the population is considering a new line of credit at this time, while one in ten admitted they were using buy now pay later platforms to get by.”“Concerningly, financial vulnerability is incredibly high right now with 48% saying that meeting financial obligations will be touch and go. 1 in 10 Australians reported that they felt like they are a few steps away from homelessness. With so many people feeling a high degree of financial stress, purse strings are being tightened and non-essential spending has taken a sharp dive.”

It’s official. Up has just made history as one of the first neobanks in Australia to join the international money transfers scene, thanks to its latest partnership with IMT provider TransferWise. Launched today, the collaboration will enable Up users to send money in 48 different currencies with TransferWise, all via the Up app.TransferWise Australia’s country manager, Tim Cameron said it’s a next big step to making international money transfers cheaper and faster. “Though an email can travel around the world in a matter of seconds, moving money internationally is still incredibly cumbersome, slow and expensive,” he said. “TransferWise and Up share a common vision to change this status quo and to modernise the international financial system to provide a fair and transparent banking experience for everyone.”In fact, Up customers using the new IMT feature won’t have to worry about any exchange rate markups, plus they’ll know exactly how much they need to pay in transfer fees and how much foreign currency will enter their recipient’s bank account. “Australians staying with traditional providers could end up paying between five and eight times more than Up customers, who will have a seamless, low-cost TransferWise experience without leaving the Up app,” Up’s co-founder, Dom Pym said. Mozo’s number crunch reveals that for an AU$10,000 transfer, Aussies could save US$261 just by opting for TransferWise’s exchange rate today instead of the big four bank average rate.*And according to Transferwise, it doesn’t just deliver bigger savings - but also fast speeds. For instance, Transferwise data shows that in the second quarter of 2020, 28% of money sent overseas with the IMT provider arrived instantly (i.e. took 20 seconds or less).

When you think of credit cards rewards you may think of things like flights, upgrades and airport lounge access. But let’s be real, who knows how long it’ll be before unrestricted travel is back in action.  In the meantime, if you are looking for a better deal on your credit card, you may want to turn your attention to cashback offers. Yes, that’s right, receiving money back in your pocket based on your spend! So, what’s on offer right now? At the moment, 14 credit cards on the Mozo database offer cashback on spending, including three of the Australia's four major banks. Want to get to know some cashback offers a little better? Check them out below!

It’s easy to forget about our superannuation, or assume it’s all being taken care of and not in need of our attention. But if you’ve got money across several funds you could be paying much more than you need to be.It’s not uncommon for super accounts to be opened for us when we commence a new job, and considering the average person goes through multiple ones throughout their career, it’s possible to accumulate multiple accounts over your lifetime.Different funds have different approaches to investing your money, so there might be some value in keeping more than one account open. But if you prefer to roll over money across several accounts into a single high-performing fund, here’s how to do it.

Despite the country’s hesitancy to spend at the start of the Covid-19 lockdown, recent figures from ME Bank found that Aussies aren’t ready to give up their plastic just yet. According to the ME Household Financial Comfort Report, credit cards are still the nation's preferred payment method, with 46% of respondents claiming they had used their credit card in the past six months. Surprisingly, it was Buy Now, Pay Later (BNPL) services that were on the decline, with only 13% of Aussies reporting they had used a BNPL platform within the last six months. “Buy Now Pay Later certainly hasn’t replaced the credit card yet. Credit card usage is holding steady while Buy Now Pay Later is dropping,” said ME general manager personal banking, Claudio Mazzarella.“It doesn’t matter how innovative the lending method is, most Australians are wary of getting into more unsecured debt in the midst of a global and domestic economic crisis,” he said.

If you’re an avid saver, then we don’t have to tell you that a year ago neobanks were your best bet for a decent return on your savings. However, recent Mozo analysis has shown that three neobanks have been forced to follow in the footsteps of the big four banks and slash their savings accounts rates. Over the last month, Mozo found that Up made the biggest reduction by shaving 25 basis points off its Saver Account (1.65%), meanwhile Xinja and 86 400 both cut 15 basis points off their savings products, bringing the rates down to 1.65% and 1.70%, respectively. “While the neobanks had managed to offer a glimmer of hope for the nation’s savers, these out of cycle cuts are a worrying sign,” said Mozo Director, Kirsty Lamont. “As they seek to attract new customers, we’ve come to expect the neobanks will buck the downward trend of the banks but with their savings rates also heading south they appear to be rejoining the pack.” According to the Mozo database, Australian Unity and MyState Bank currently offer the leading at-call savings rate of 1.75%, while the big banks severely lag behind with an average on-going savings rate of 0.54%, 121 basis points difference. Though there was some good news for younger Aussies looking to boost their savings balance, as Westpac launched its new Westpac Life account, boasting an impressive 3.00% for balances up to $30,000.

As pandemic conditions and restrictions continue to develop across the country, the mental well-being of impacted Australians is becoming a top concern.This has become more evident in national discussions since early August, when Victoria’s lockdown was reinstated – with even tighter restrictions for metropolitan Melbourne – after a sustained spike in Coronavirus cases.In an ABC News Breakfast interview this week, deputy chief medical officer professor Michael Kidd recognised the mental and emotional impact of prolonged isolation.“Please look after each other, please look after your mental health. If you are feeling particularly depressed or anxious as a result of the restrictions which are in place, please reach out to Lifeline, Beyond Blue, the other resources,” he said.

To say that it’s been a noteworthy year for Australian interest rates and, as a result, mortgage rates may be an understatement.

Nearly 90% of Australians have items that they either don’t want or don’t use in their homes, according to Gumtree’s 2019 Second Hand Economy report. The report shows that the average Aussie household is sitting on over $5,000 worth of unwanted goods that could be sold on.

2020 isn’t shaping up to be a great year for Aussie savers. Plummeting rates have left savings accounts across the board looking worse for wear, and term deposits haven’t been spared all that much either.

Given it’s one of the big banks, you might be thinking of stashing your hard-earned cash with ANZ. It has a few different savings accounts right now, whether you’re looking to build your nest egg or you’re just after a temporary place to park your money. But also keep in mind that ANZ is currently behind some competitors when it comes to interest rates, according to Mozo data.So how does ANZ compare to the rest of the market? Let’s take a closer look.

From the cost of pet food, toys and other pet supplies, to astronomical vet bills, having a pet can cost you a small fortune. But if we insure our cars, homes and other expensive possessions, why wouldn’t we insure the lives of our furry friends?

Last week, the Australian Capital Territory government announced it would be expanding its ACT Home Assessment Energy Scheme to renters. The ACT Home Assessment Energy Scheme is an initiative that provides free in-house energy assessments to discover areas where households can save on their energy bills. “It can be very hard for renters to make major energy-saving changes to their home. By expanding this program, we are able to provide renters with tailored information,”  said Minister for Climate Change and Sustainability, Shane Rattenbury. But while this is good news for renters in the ACT, it doesn’t mean the rest of the country should miss out on energy savings insights. So we’ve jotted down five energy saving tips for renters that can help keep costs down all year round.

Westpac announced today that thousands of Australian businesses have not yet taken advantage of Merchant Choice Routing (MCR), and it will be taking a proactive role in helping merchants activate the service.Over the coming months, Westpac will reach out to merchant customers who stand to benefit from MCR, and unless they opt against it, will switch them over.Westpac chief executive business division, Guil Lima estimates that around 37,000 small businesses will be better off using the service.“Westpac’s decision today will help merchant customers with Westpac owned terminals activate pricing that’s best for them, giving them one less thing to worry about at an already very challenging time,” he said.

If you’ve been reading the property pages recently, becoming a homeowner might seem like a more attainable goal than in previous years. Home loan rates have seen significant drops in the past few months, with top offers diving below the 2.00% mark.But if you want to lock in one of these historically low interest rates, there’s something you can’t forget: revert rates.

Finding upsides in the Covid crisis can be a tough ask, but a silver lining has emerged for Australian home borrowers that is cause for at least some celebration: home loan rates have dropped significantly since the pandemic hit Australia. Lenders passed through much of the RBA’s March rate relief, and have continued to cut rates in the months since as they battle it out to attract new borrowers.

The Reserve Bank of Australia left official interest rates unchanged at its August meeting this afternoon, as Victoria contends with a second wave of coronavirus infections that has put the entire country on high alert.

It’s been a turbulent year for the Aussie dollar. Back in March, the AUD crashed to a 17-year low of 55 US cents before rebounding to 71 US cents last week.And this period of volatility isn’t expected to end any time soon, as headwinds such as escalating US-China tensions and spikes in COVID-19 infection threaten to hamper the AUD’s strong position.So as a business paying overseas suppliers or contractors, you may be wondering: what are my best international money transfer (IMT) moves in these times of volatility? TorFX’s managing director, Nigel Fox says it could partly come down to waiting for opportune moments to make your transfer.“Exchange rates are always moving, with some currency pairs fluctuating by as much as five percent in a matter of weeks,” he says.“Subsequently, timing is everything when it comes to securing the right rate for your international money transfers. Picking the wrong time to move your money could prove costly and eat into potential profit.” To illustrate this, let’s compare AUD/USD exchange rates on two different days.

The Australian Prudential Regulation Authority (APRA) has estimated that a whopping $30 billion has been taken from superannuation accounts as a result of the Covid-19 pandemic. Whether Aussies are choosing to do this willing or because of little choice, it’s not painting a pretty picture for retirement. New research from Colonial First State has revealed that 23% of Aussies between the age of 30-65 believe they will have to delay retirement and work longer due to the pandemic. Almost half (45%) of respondents also confessed to either feeling scared or not financially confident about retiring. “The Coronavirus pandemic has significantly changed the world, not only socially but financially too. These are extremely challenging times for many people,” said Colonial First State’s general manager, Kelly Power.

Changes to home loan interest rates may be slowing but competition among lenders is alive and well with averages continuing to fall and some of the sharpest offers ever seen hitting the market in recent weeks.

Just when we were starting to get used to home loan rates that start with a '2', Australia's challenger lenders are now rolling out home loan rates with a '1' in front, offering even more opportunities for savvy borrowers to compare and save.

As headline rates dropped in July, Westpac made a surprise move. The big four bank introduced a new savings account: Westpac Life, which comes with an enticing 3.00% p.a. interest rate.

If you were hoping for a dramatic change in term deposits, then you’ll be sorely disappointed. Around 70 of the 86 financial providers Mozo tracks dropped interest rates in July and our experts predict cuts will continue throughout August. What you might be surprised to hear is that even after all that, there are still perks to locking your money away in a term.

In the wallet of the average Aussie you might come across a few essentials like a debit card, a drivers license, some cash and of course the handy credit card. According to the Reserve Bank of Australia (RBA), there is now a credit card for every adult Australian, with the total number hitting an impressive 16 million. But while it might seem like they’ve been around for a long while, credit cards only made their way to Aussie shores in 1974, making them just 46 years old. And within those 46 years plastic has taken on many forms, from low rate to balance transfers or travel and rewards cards. Younger Aussies are even choosing to adopt emerging platforms, like Buy Now, Pay Later (BNPL) as a preferred ‘line of credit’. So could credit cards become a thing of the past? This report answers that and more.

86 400 is the latest bank to announce a hit to savers, with the neobank set to cut the maximum  interest rate on its Save Account from 1.70% to 1.60%.

The Reserve Bank is unlikely to cut the cash rate when it meets on Tuesday, but lenders are forging ahead with a new round of home loan rate cuts in a veritable bonanza for borrowers. Variable and fixed home loan rates are dropping under 2.00% ahead of the RBA's decision, and there are some big savings on offer.

A pinch and a punch for the first day of the month, it’s August folks! Which means there’s just one month left of winter. Crazy to think that we’ve spent nearly two full seasons in lockdown! Anyhow, here’s another fab financial checklist chock-a-block full of tips and tricks to get you through the month. Ladies and gentlemen, we give you your fave Financial Checklist: August 2020 edition!