Banking

Online lender UBank today made cuts across all of its fixed rate home loans, bringing its three-year offer down to a new low of 1.75%. For a limited time, if you’re an owner occupier making principal and interest repayments, you can lock in ultra competitive three-year fixed rates from 1.75% (2.22% comparison rate*) with UBank.While UBank’s UHomeLoan (Fixed) was already the rate leader for three-year terms in the Mozo database, today’s 20 basis point rate cut raises it even further above the rest of the competition. The next best three-year rate after UBank’s is 1.97% - 22 basis points higher. Comparing it more broadly to other lenders within our database, UBank now sits a massive 62 basis points below the three-year fixed rate average of 2.37%. The only catch is you have to get in quick. To be eligible for UBank's new rate, you must apply by 26 February 2021 and have your application settled within 90 days. 

If we were to ask you for your phone number, you could tell us in three seconds. But what about if we wanted to know your credit card interest rate?According to new research from Defence Bank, one in three Aussies don’t know their credit card rate. Of those Aussies, four out of five didn’t realise their interest rate was above 10%, while some owed a card with a rate above 20%. “It’s time to break the cycle of paying unnecessarily high credit card interest rates. Australian consumers need to stop paying 20% for the convenience of a basic credit card, when genuine low-rate options exist for half the cost,” said Defence Bank chief executive officer, David Marshall. Concerningly, more than half (60%) of respondents admitted they don’t pay much attention to the rate on their card, while one in four carry a balance sometimes throughout the year. The data also found that Aussies are losing faith in rewards credit cards, with one in two believing the rewards programs are generally not good value for money. “We see from these results that Australians are frustrated by the rates they’re paying and the bells and whistles they either can’t use or don’t need,” says Marshall.

In December last year, neobank Xinja renounced its Authorised Deposit-Taking Institution (ADI) licence and discontinued its banking and savings accounts.

In the world of banking, 2020 was a whirlwind. From three RBA rate cuts and the implementation of open banking, to the growth of some neobanks and fall of others, it can all be hard to keep track of. So if you’re left feeling a bit confused about what’s to come in 2021, we’ve got you covered. Here are our top 10 banking buzzwords you’re likely to hear more than once this year. 

Commonwealth Bank customers can get a digital copy of their receipts sent straight to their smartphones under a new partnership between the major bank and Sydney-based fintech Slyp. 

If there’s one thing 2020 gave the average Aussie, it’s a change in perspective when it comes to money. Not only did we take saving more seriously, but one in four Aussies vowed to rid themselves of debt. “Historically, Australians haven’t been afraid of debt, particularly through our love of credit cards. We’ve racked up debt with the assumption that job security and a steady paycheck is a relatively safe bet, but a global pandemic has tipped that notion on its head as unemployment soars,” said Mozo Director, Kirsty Lamont. “For many people, Covid-19 has been a wake up call to get their finances in order, and eliminating debt is a key part of that.” If you’ve never had to take a serious look at your debt before, it can seem a little daunting. So to equip you with skills you need to make your debt disappear, we’ve listed our top four tips below.

Pensioners are continuing to draw the short straw when it comes to deposits, according to new Mozo analysis. Mozo found that on a balance of $53,000, the average pensioner account rate now sits at a mere 0.62%, which is a whopping 163 basis points below the deeming rate of 2.25%. “Although the government assumes pensioners are getting at least 2.25% annual return on every dollar over $53,000 in savings or investments to determine their pension income, the numbers tell a different story,” said Mozo Director, Kirsty Lamont.Pensioners who have cash stashed away with the big four banks aren’t winning either, as Mozo’s analysis shows that the average return ranges from 0.21% to 0.35%. “Times have never been tougher for pensioners when it comes to generating an income from their savings, so following the third official rate cut this year it’s time the government did the right thing by older Australians and reduced the deeming rate,” said Lamont. AMP and Bendigo Bank were the providers offering the lowest pensioner rate in the Mozo database, while ANZ’s 9-month (0.15%) and 12-month (0.20%) term deposit rate are the lowest rates for those terms for any bank recorded in Mozo’s database. “There is not a lot of good news around for those in the market for a term deposit, with 86 deposit-takers slashing rates in the past two months and more cuts likely before Christmas as the latest official cash rate continues to wash through the market,” Lamont explained. BankVic currently has the highest 12-month term deposit rate at 1.05%, while the average 12 month rate sits at 0.64%. Mozo calculated that a $25,000 investment with the BankVic 12-month term deposit would see you earn $263 in interest, compared to $160 on the average term deposit rate.

From Mazdas to Corollas to BMWs, Aussies are spoilt for choice when it comes to finding their dream car. But for many drivers, picking up the right set of wheels is only half of the job, the next step is finding the right car loan. The good news is Mozo has just unveiled its best car loans for this year in its 2021 Mozo Experts Choice Car Loan Awards!Our judges sifted through 89 personal loan products from 88 financial institutions and performed a series of calculations to find the car loans that were not only top value, but budget-friendly.“Purchasing a car is often recognised as a financial milestone for many people, so having the right car loan under your belt is essential,” said Mozo Experts Choice Judge, Peter Marshall. “With the range of options available, finding the right product can be difficult. Our awards aim to help Australians with their search by highlighting the products we believe are worth shortlisting.”So without further delay, introducing the winners for the 2021 Mozo Experts Choice Car Loan Awards.

Ecommerce has been this year’s big success story for Australian businesses, with many seeing their sales bounce back thanks to record-high numbers of people shopping online.Yet, as promising as the domestic eCommerce market looks right now, new data suggests your business could make even greater gains by going international.International money transfer (IMT) specialist OFX reported that revenue for its online clients selling overseas jumped a massive 41% last month, compared to a year ago.Their total volume of goods sold was also significantly higher this November than the last - up 51% from a year ago. OFX’s strategic partnerships director for eCommerce, Edward Wiley says these businesses have mainly benefitted from a COVID-induced growth in online sales, not just here in Australia but in other larger countries like the US too. For comparison, Australia’s eCommerce market is forecasted to hit US$27.2 billion by the year’s end, whereas the US’s is projected to reach a much higher US$431.6 billion, according to analytics company Statisca. “Australian businesses are doing really well but some of them might be missing out on this once-in-a-lifetime opportunity to expand internationally and catch that kind of [global] market share while everyone is moving to buying online,” Wiley says.

Xinja has today announced it will be returning its Authority Deposit-Taking Institution (ADI) licence and will be discontinuing its Bank and Stash account. According to the neobank, the decision to ‘close’ and leave the banking industry is so that it can focus on its other areas of interest, like its US share trading product, Dabble.