This is a round-up of rates in March and some may have changed since the time of writing. To check on today’s rate, click on the highlighted product.
The RBA didn’t change the official cash rate in March, and the ANZ Bank also decided not to move their variable rate home loans so most lenders left their headline rates alone. Those lenders that did move their variable rates had not moved with everyone else in February so were just playing catch-up.
Fixed rates were on their way up by the end of the month. Looking just at loans without loan-to-value-ratio restrictions, the cheapest rate for 1 year is now 5.78% from UBank compared with the best rate of 5.69% in February, while the best 3 year rate is now CUA’s 5.95% versus last month’s best rate of 5.89%.
Personal Loans and Credit Cards:
Remember how credit cards and personal loans largely missed out on the RBA rate cuts late last year? Well now we are seeing these rates move even higher. Mostly small changes, but enough to push the average rate for credit cards without rewards up by 11 basis points during the month and the average rate for unsecured fixed personal loans up by the same amount. Cash grab anyone?
Either the fight for consumer deposits is intensifying, or the banks believe that there won’t be any more RBA cuts for a while. During March we saw term deposit rates start to creep up again, particularly for longer term investments.
Although UBank already had the leading 6 month rate they bumped that up to 6.01%, staking a clear claim for the best rate for that term. Things were even more interesting in one year rates with the best rate on offer now ING Direct’s 5.90% compared with a best rate of only 5.60% last month. UBank at 5.81%and RaboDirect at 5.80% show that the online banks are still very keen to catch your cash.
A quiet month for at call deposit rates with the most noteworthy change being Commonwealth Bank’s decision to lift its NetBank Saver 3 month introductory rate by 25 basis points to 5.50%, and 4.25% after that. This is still hardly competitive though when RaboDirect will pay 6.01% for 4 months and a decent 5.40% when the introductory period has finished.
The RBA is widely expected to keep the cash rate on hold this month so we will be keeping a close eye on ANZ and the other banks to see if any are brave enough to kick off another round of follow-the-leader.