Mozo Rate Chasers Roundup – April 2014

This is a round-up of rates in April and some may have changed since the time of writing. To check on today’s rates click on the highlighted product.

Home Loans:

The four major banks were content to leave their rates unchanged during the month with just one exception. Commonwealth Bank has trimmed 5 basis points off the 3 year introductory rate on its Economiser Home Loan, now 4.84% reverting to 5.44% after the introductory period. In addition, the bank will waive the $8 monthly service fee for the life of the loan while this special offer lasts.

UBank has a special offer of a $1,961 gift card for loans of more than $350,000 on applications received before the end of May.

loans.com.au has lifted the rate on its dream home loan from 4.49% to 4.54%, but it’s still the lowest variable rate on the market. The best fixed rates are IMB’s 3.99% for 1 year, eMoney’s 4.65% for 2 years, and Teachers Mutual Bank’s 4.64% for 3 years.

While there hasn’t been much movement in rates, some lenders are making their fixed rate products more attractive through increased flexibility. The ability to use excess cash to offset interest on your home loan is available for many variable rate products, but has been very restricted when it comes to fixed rate loans.

CUA previously offered 100% offset on its Premium fixed rate loan option, but at a higher rate than the standard loan, which doesn’t have an offset. Rates on the Premium product have now been cut to match the standard loan, removing the price penalty for access to a full offset facility. Teachers Mutual Bank introduced a 100% offset account for all loans, including fixed. RAMS increased the amount of additional repayments allowed on fixed rate loans from $30,000 to $39,000.

Check out Mozo’s Home Loan Compare tool that will help you find the lowest rates for your loan amount and property value.

Credit Cards:

The Balance Transfer offers that were common earlier in the year have started to dry up, but don’t despair there are still some around, and others have been replaced by a range of other sweeteners to win your business, particularly by the major banks.

ANZ still has a 0% for 12 months balance transfer offer for non-rewards cards, but for rewards cards the rate offer has been replaced by a range of bonus offers of up to 40,000 ANZ Rewards points or 20,000 Qantas Frequent Flyer points.

Commonwealth Bank continues with its balance transfer offer of 5.99% for 5 months, along with $50 cashback when purchases of $100 or more are made at each of 4 partner retail stores. On top of this the bank will now give you 10 months without interest charges on any purchases.

nab continues with its 0% for 15 months balance transfer rate. For those more interested in rewards points, the bank allows you to instead take a 4.99% for 6 months balance transfer rate along with a swag of bonus points – up to 40,000 free Qantas Frequent Flyer or Velocity points, depending on which card you get.

Westpac has reduced its balance transfer rate to 3.99% for 6 months, but added an introductory purchase rate of 0% for 12 months. The bank’s Low Rate card still has the old 0% for 14 months balance transfers rate if clearing an existing debt is most important to you, and like some of the other major banks is offering bonus rewards points, doubling the normal earn rate for the first 3 months on its range of Altitude and Earth rewards cards.

See all the great credit card offers along with the important fees and rates here to find a deal that suits you.

Term Deposits:

Even though the RBA hasn’t made any changes to the official cash rate since and loan rates have been in a holding pattern, depositors will be finding it harder to get a decent return on their funds. In April we saw only 26 term deposit rates increase while 111 rates were reduced, following the trend that we’ve seen over the past few months.

Commonwealth Bank was the only one of the 4 major banks to make any changes to term deposit rates during April. The bank cut its 4 month rate for new money 25 basis points to 3.0% and switched its best rate from 3.25% for 6 months to 3.05% for 7 months.

The best term deposit rate for up to a year is 4.00%, available from Rural Bank ONE for 3 months, ME Bank for 5 months and for 1 year from The Rock Building Society or Queensland Police Credit Union.

For 2 years the best rate is 4.10% available from ME Bank or MyState, for 3 years it’s 4.30% from Police Bank, for 4 years the best is 4.40% from RaboDirect, Bank of Queensland or Bankwest, and the top 5 year rate is 4.60% from RaboDirect, Peoples Choice Credit Union or Police Bank.

Find the best rates for a term that suits you using Mozo’s Term Deposit Compare tool.

At Call Deposits:

Two of the big 4 banks cut 10 basis points off their ongoing bonus rates – ANZ’s Progress Saver and Westpac’s reward saver bonus rates are both now down at 3.71%. Commonwealth Bank (NetBank Saver 3.93%) and nab (Reward Saver, 3.91%) are the best from the big banks.

UBank reduced the ongoing bonus rate it pays on its USaver with Ultra from 4.62% to 4.37% p.a. on balances up to $200,000, but it’s still the top ongoing rate in the market. Account must be opened with a minimum $10,000 balance and deposit of at least $2,000 must be paid into the Ultra bank account each month. As well as the rate cut on its USaver with Ultra account, UBank cut the bonus rate on its standard USaver account, also by 25 basis points, now 4.01%.

ME Bank’s Online Savings Account pays 4.60% pa.a for 5 months up to $250,000, but must be linked to an Everyday Transaction Account.

If you’re looking for a new day-to-day account rather than high interest, Peoples Choice Credit Union extended its 2.50% cashback offer on Visa Paywave transactions for Zip Account holders to the end of June (maximum of $12.50 per week).

Try our Savings Compare tool that makes it easy to see the conditions that can apply to special rates or our Bank Accounts Compare tool that shows which accounts don’t charge a monthly fee, or can have their fee waived if you meet some conditions.

Mozo Rate Chasers Roundup – April 2014 was last modified: May 5, 2014 by Peter Marshall

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  1. In mid April the Greater Building Society cut its 2.3, 4 and 5 year fixed packaged home loan rates. The 3 year loan was cut 26 points to under 5% (4.99%). The packaged loan has a fee free transaction account, discounted insurance and financial planning, and a linked credit card with waived annual fee. it is good to see the other lenders introducing more flexibility into fixed loans for consumers. The Greater has always offered a redraw facility on its fixed rate home loans (free via internet banking).

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