This is a round-up of rates in July and some may have changed since the time of writing. To check on today’s rates click on the highlighted product.
Most of the attention over the last couple of weeks has been firmly focused on fixed rates. Commonwealth Bank kicked off the 5 year fixed discounting by slashing their rate from 5.69% to 4.99%. At the time of writing, the lowest 5 year rate was ME Bank’s 4.94% and a total of 14 lenders had 5 year fixed rates less than 5.00%. Westpac made the largest cut of 80 basis points to take its rate to 4.99%, while its subsidiary brands (St.George/Bank of Melbourne/BankSA) reduced their rates 70 basis points, also to 4.99%. NAB also took 70 basis points off its 5 year rate to bring it down to 4.99%.
For 1 year fixed rates the largest cuts were to Bankwest’s Complete Fixed Home Loan which is down 31 basis points to 4.78%, and Greater Building Society’s Great Rate Home Loan down 24 basis points to 4.85%. The best 1 year rate currently is UBank’s 4.38%.
In 2 year rates the biggest moves were 30 basis point reductions to both Greater Building Society’s Great Rate Home Loan, now 4.99%, and UniCredit’s Fixed Option Home Loan, now 4.69%. Newcastle Permanent has the best 2 year fixed rate at 4.49%.
3 year fixed rates were equally as busy as 5 year fixed, but the size of the cuts was smaller. The largest changes here were firstmac’s 41 basis points cut to its Home Loan rate to 4.89%, and Greater Building Society’s Great rate Home Loan down 35 basis points to 5.09%. eMoney has the lowest 3 year fixed rate at 4.65%.
The largest 4 year fixed rate cuts matched those we saw in 5 year rates, with St.George/Bank of Melbourne/BankSA slashing 70 basis points off their rates to 4.99% and Aussie cutting 55 basis points to 4.94%. Newcastle Permanent has the lowest 4 year fixed rate at 4.95%.
loans.com.au continues to have the lowest variable rate at 4.54%, closely followed by eMoney’s 4.55%.
Check out Mozo’s Home Loan Compare tool that will help you find the lowest rates for your loan amount and property value.
Plenty of long term balance transfer offers are available with the longest being Citibank’s 0% for 24 months on its Platinum card, however that attracts a 3% fee. Citibank also has a 0% for 18 months balance transfer, with no fee, on its Classic card. There are several options for 0% for 16 months from ANZ on its First, Low Rate Platinum, and Platinum cards.
No card issuer is reducing rates, but we have seen a few rate increases over the last month. Westpac increased rates by 25 basis points on its Altitude range (to 20.24%), 55 Day and 55 Day Platinum cards (to 19.84%), Earth Black (to 20.24%) and Singapore Airlines Premium (to 19.74%). Bankwest lifted the purchase rate on its Breeze MasterCard range of cards from 11.99% to 12.24%. Woolworths also increased the purchase rates on its cards, the Everyday Money card from 19.84% to 19.99%, and on its Qantas Credit Card from 19.99% to 20.49%.
In the rewards area a couple of new offers were introduced. ANZ had been offering between 10,000 and 40,000 bonus points on first purchase for a range of its rewards cards but now all Frequent Flyer and Rewards cards get 50,000 bonus points, although there’s a minimum spend requirement to qualify of $1,500 on the Frequent Flyer cards. Jetstar ceased the $100 Jetstar flight voucher offer on its MasterCard and is now offering up to 30,000 bonus Qantas points along with two Qantas Club lounge invitations on its Platinum MasterCard.
See all the great credit card offers along with the important fees and rates here to find a deal that suits you.
Finding a good term deposit rate got even harder in July as rates continued their downward trend with 32 increases compared with 241 decreases. This is the biggest downward move in any month so far this year, in terms of the number of cuts.
The best rate for less than 1 year is 3.90% being offered by Arab Bank for 9 months, and it also has the second best at 3.80% for 6 months.
Top 1 year rate is 3.85% also from Arab Bank, and for longer terms the best is Suncorp’s 4.50% for 5 years.
Almost every one of the few Term Deposit rate rises in July were either a minor tweak or a special rate swap between terms, with the possible exception of some small increases by Suncorp, AMP and Police Bank.
Find the best rates for a term that suits you using Mozo’s Term Deposit Compare tool.
At Call Deposits:
A few banks have adjusted their bonus and introductory rate offers. But there is an underlying trend in favour of incentivising the take-up and use of transaction accounts, including the upcoming change in conditions flagged by UBank, but also new Paywave and PayPass cashback incentives from ING Direct and ME Bank.
ING Direct Orange Everyday account holders can use any ATM in Australia for free, as long as they make a deposit of at least $1,000 in the month – previously this was only for withdrawals of $200. Meeting the minimum deposit conditions also gives account holders 2% cash back on Visa payWave purchases under $100 in Australia. At the same time ING Direct cut its Savings Maximiser’s 4 month introductory rate from 4.35% to 4.00%.
ME Bank has introduced a 5% cash back offer on PayPass Purchases for 6 months on Australian purchases under $100 for EveryDay Transaction Account applications received by 31 August. The bank removed what was the market-leading introductory rate – 4.60% for 5 months – from its Online Savings Account.
While UBank’s USaver with Ultra was offering 4.37% a month ago, it’s now down at 4.17% but that’s still the best ongoing bonus rate available. This bonus applies if $2,000 is deposited in the month, but changes are imminent. UBank has advised its customers that the USaver account will no longer have a bonus interest rate after 31st October. Instead, to get the 1.06% bonus that takes the total variable rate to 4.17%, customers will need to have a linked UBank Ultra transaction account, and have at least $200 paid into Ultra account each month.
Next best rate is the RAMS Saver account which pays 4.11% if $200 is deposited in the month and no withdrawals are made.
Better news from some of the big banks as Commonwealth Bank increased both the ongoing bonus rate on its GoalSaver, and introductory rate on its NetBank Saver to 4.00% from 3.81%. Westpac increased the 3.82% on its eSaver to 4.00%.
Try our Savings Compare tool that makes it easy to see the conditions that can apply to special rates.