This is a round-up of rates in January and some may have changed since the time of writing. To check on today’s rates click on the highlighted product.
Rates have been stable for a while now, and all indicators point to them remaining in the doldrums for some time yet. Average rates across the market have therefore been very static, but there have still been some developments and this month we will highlight those.
HSBC has cut the rate on its Home Value variable loan to 4.75%, giving it the lowest variable rate offered by a lender with a branch network. They are also waiving up-front fees and the loan doesn’t have any ongoing fees. If you’re happy to go with an online only lender the best variable rate is still loans.com.au, starting at 4.49%.
Competition remains focused on fixed rate loans however, with NAB trimming 5 basis points off its 3 year rate (now 5.14%), and 20 basis points off its 4 year rate (to 5.44%), while Westpac also cut its 3 year rate by 5 basis points (matching NAB’s 5.14%). Citibank joined the fray by slashing 25 basis pints from its 1 year rate, now 4.74%.
The big banks may be getting the headlines, however it remains the smaller players that offer the best rates. One year rates start as low as the 3.99% offered by IMB, the best 2 year rate is Newcastle Permanent’s 4.64%, and the lowest 3 year rate is QT Mutual Bank’s 4.79%.
Check out Mozo’s Home Loan Compare tool that will help you find the lowest rates for your loan amount and property value.
Term deposit rates are still heading south with average rates for key terms all slightly lower than they were at the start of the year. One notable exception is Suncorp, which increased its 6 month rate so matching the best in the market for that term at 3.90%. Suncorp also has the best 1 year term deposit rate at 4.00%, along with a few other providers.
If you have a savings account with any of the big 4 banks you’d be well advised to check what rate they’re paying you after they kicked off 2014 by slashing deposit rates. Westpac has trimmed 10 basis points from the introductory and bonus rate high interest savings accounts offered by its group of brands that include St.George, Bank of Melbourne, BankSA, RAMS, and Westpac’s own Reward Saver account. Westpac’s Reward Saver 3 month introductory rate is now 3.92%.
ANZ reduced the 4 month introductory rate on its Online Saver 10 basis points to 4.00%. NAB’s Reward Saver got less rewarding with the ongoing bonus that’s paid each month that you make at least one deposit and no withdrawals reduced from 4.25% to 4.06%. Commonwealth Bank also trimmed the rate on its Goal Saver account, requiring a deposit of at least $200 and no more than one withdrawal in the month, going from 4.01% to 3.91%.
ME Bank will pay 4.60% for 5 months on its Online Savings Account as long as you also have its Everyday Transaction Account. The best in the market remains UBank’s USaver which will pay 4.62% without a time limit, but again you need to have UBank’s Ultra transaction account as well to qualify for this rate, as well as meeting a monthly deposit condition.
If you’ve hit the credit card hard over the last couple of months there are plenty of providers out there keen to convince you to switch to their product. NAB is offering the longest balance transfer deal with 0% for 15 months. That’s available on all of its cards right now, so take your pick and start saving! If you‘ve been sensible and kept the credit card debt to a minimum you can choose a balance transfer rate of 4.99% for 6 months instead, and grab a swag of rewards bonus points.
There are plenty of others too. Bankwest is offering 0% for 13 months on its Breeze MasterCard range which have a low purchase rate of just 11.99%, or if you’d prefer an American Express card they all have a balance transfer rate of 0.99% for 6 months.
See all the great credit card offers along with the important fees and rates here to find a deal that suits you.