This is a round-up of rates in May and some may have changed since the time of writing. To check on today’s rates click on the highlighted product.
A few lenders made small cuts to their variable rates, including RESI’s Essentials, Aussie’s Select and Credit Union SA’s Discounted products.
QANTAS Credit Union has improved its Qantas Points Home Loan by removing the annual fee, and until 31 July applicants will receive a bonus 60,000 Frequent Flyer points.
The lowest variable rate continues to be loans.com.au’s 4.54%, but once again most of the action has been in fixed rates. IMB still has the best 1 year fixed rate at 3.99%, but for those looking for a longer period of repayment certainty HSBC has launched a new 2 year special fixed rate at 4.58%. The best rate for a 3 year fixed home loan is ME Bank’s 4.69%.
Check out Mozo’s Home Loan Compare tool that will help you find the lowest rates for your loan amount and property value.
There are still plenty of hot offers if you’re looking to clear an existing debt, or just save some money on a new credit card.
Community First’s McGrath Pink Visa has the lowest purchase rate in the market at 8.99% and won a Mozo Experts Choice Award for its fantastic rate and low annual fee of $40. This best offer has been made even better with applications received before the end of June having all balance transfers, purchases and cash advances charged at only 4.74% for the first 9 months.
Commonwealth Bank has launched a 0% for 10 months introductory purchase rate offer across most of its cards, in addition to its 5.99% for 5 months balance transfer offer.
St.George (and its ‘sister brands’, Bank of Melbourne and BankSA) are now offering a rate of 0% for 9 months on their range of Amplify cards, along with some bonus rewards points to sweeten the deal.
Virgin Money’s 0% for 6 months balance transfer deal has been extended to 0% for 14 months, but on the condition you spend at least $1,000 on eligible purchases by the end of August.
See all the great credit card offers along with the important fees and rates here to find a deal that suits you.
The bad news continues for savers with yet another month where the number of rate cuts significantly outweigh any increases.
The best rates now can be found in at call deposits rather than fixed terms (see below). The best rate for terms of less than one year is 4.00% from ME Bank for 5 months. Next best is 3.80%, available from a range of providers for various terms: CUA for 6 through to 11 months; ME Bank for 4 or 6 through to 11 months; Heritage Bank for 6 months; and Rural Bank ONE for 6 months.
To do better than 4.00% for 5 months we have to look at 2 year terms where rates of up to 4.10% are available from ME Bank and MyState.
Find the best rates for a term that suits you using Mozo’s Term Deposit Compare tool.
At Call Deposits:
Savings rates are still sliding but, as mentioned in Term Deposits above, there are better rates on at call deposits right now, although with no guarantee about what will happen in the future, particularly if the RBA decides to cut the official cash rate again.
ANZ and Westpac both trimmed 10 basis points off their ongoing bonus rate products at the end of April but made no further changes in May. Commonwealth and NAB followed suit with 10 basis point reductions to their ongoing bonus rate products, bringing Commonwealth’s Goal Saver down to 3.81% and NAB’s Reward Saver to 3.83%.
Commonwealth trimmed 10 basis points off the 3 month introductory rate on its NetBank Saver to 3.81% while NAB also took 10 basis points off the 4 month introductory rate on its iSaver, now 3.70%.
Accounts combining a savings and transactional component still lead the way on rates.
• UBank’s USaver with Ultra pays 4.37% p.a. on balances up to $200,000. 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.
• ME Bank’s Online Savings Account pays 4.60% p.a for 5 months up to $250,000, but must be linked to an Everyday Transaction Account.
For stand-alone savings accounts the best are:
• RAMS Saver’s ongoing bonus rate of 4.11% on balances up to $500,000
• ING Direct’s Savings Maximiser paying 4.35% on balances up to $250,000 for the first 4 months.
Try our Savings Compare tool that makes it easy to see the conditions that can apply to special rates.