Mozo Rate Chasers Roundup – August 2014

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

Home Loans:

Many lenders followed the direction set for rates in July cutting fixed rates, with longer terms once again seeing the largest falls. The average size of change for 1 year rates was -14 basis points while for 4 years it was -36 basis points and 5 years was -40 basis points.

The lowest 1 year fixed rate is now 3.95% which is offered by Illawarra Credit Union, the best 2 year rate is 4.45% from Queenslanders Credit Union, the best 3 year is 4.59% from ME Bank and Newcastle Permanent Building Society, and eMoney has the lowest rate for both 4 and 5 years at 4.77%.

For variable rates loans.com.au continues to have the lowest variable rate in the market at 4.54%. This was previously limited to loan-to-value ratios of up to 80% but it’s now available for borrowers with a loan-to-value ratio of up to 90%. Mortgage House is also now offering a rate of 4.54%, but limited to those with a loan-to-value ratio of up to 60%.

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:

Not many changes to credit cards during August with the major banks leaving their main offers as they were in July and no purchase rate changes to report.

ANZ has a 0% for 16 months balance rate on its Low Rate, Low Rate Platinum, First, and Platinum cards. Bonus rewards points are available on its Frequent Flyer and Rewards card products. The annual fee waiver that applied for the first year on its Frequent Flyer cards has been removed.

Commonwealth Bank continues to offer an introductory purchase rate of 0% for 10 months along with a balance transfer offer of 5.99% for 5 months across its whole range of cards.

NAB’s longest BT is 0% for 15 months on its Premium Card while all other cards have balance transfer deals of 4.99% for 6 months. The Low Rate Card gets an additional sweetener of a 0% for 12 months introductory purchase rate. NAB is offering bonus points offers on its flybuys, Qantas Rewards and Velocity Rewards cards.

Westpac has a combination of 0% for 12 months introductory purchase rate and 3.99% balance transfer for 6 months on its Altitude range and Earth Black card. The low rate card has the same purchase offer, but adds a 1.99% for 12 months BT rate. The only card with a bonus points offer from Westpac is the Singapore Airlines Platinum which also has a 0.99% for 6 months introductory purchase rate.

Citibank’s Clear Platinum now offers 0% for 9 months for both balance transfers and purchases. Citibank also boosted its Classic card’s 0% for 16 months balance transfer rate to 0% for 18 months, changed the balance transfer rates to 0% for 6 months on both its Select and Signature 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:

The trend for term deposit rates has been strongly downwards for many months now and showed no signs of abating in August. If anything it’s only increasing with a massive 352 rate reductions across all terms in the month, compared with only 21 rate increases.

The highest rate for terms of less than 1 year is 3.77% offered by Teachers Mutual Bank for 6 or 7 month deposits. After that it’s Arab Bank with 3.70% for 9 months and a range of options at 3.65% including Arab Bank again (for 3 and 6 months), firstmac (for 6 months), Qantas Credit Union (for 3, 5, 6, 7 and 11 months), and the Rock Building Society (for 6 months).

Looking at longer term rates the best for 1 year is 3.70% from Arab Bank, CUA, and The Rock. For 2 years it’s 4.00% from bankmecu, Big Sky, Queensland Police Credit Union, and Police Credit Union SA NT. The best 3 year rate is 4.20% from Big Sky. For 4 years the best is 4.30% from Queensland Police Credit Union, and Police Credit Union SA NT and the top 5 year rate is 4.41% from Gateway Credit Union.

The big 4 banks had a very quiet month with none making any changes to term deposit rates. The best rates for less than a year from each are ANZ at 3.05% for 5 months, Commonwealth Bank at 3.05% for 6 months, NAB at 3.10% for 5 months and Westpac have 3.05% for 5 months. For a 1 year term ANZ is offering 3.30%, Commonwealth Bank has 3.20%, NAB has 3.35% and Westpac pays 3.30%.

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

At Call Deposits:

The pace of cuts in at call deposit rates has slowed, however the Rate Chasers are still seeing some rates go down and very few heading in the other direction. Commonwealth Bank cut the 3 month introductory rate on its NetBank Saver from 4.00% to 3.81% and Westpac cut the 3 month introductory rate on its eSaver from 4.00% to 3.82%. St.George/Bank of Melbourne/BankSA reduced the ongoing bonus rate on its Incentive Saver account from 3.90% to 3.80%.

RaboDirect increased the rate on its 90 Day Notice Saver account from 3.90% to 4.00% and Bank of Queensland lifted the base rate on its WebSavings Account by 5 basis points to 2.60%, but at the same time reducing the account’s bonus rate by 5 basis points to 4.00%.

Two new savings accounts were launched during August. Bankwest has launched its Hero Saver account which pays an ongoing bonus rate of 4.00% each month that at least $200 is deposited each month and no withdrawals are made. If conditions are not met the rate reverts to 0.01%. CUA replaced its eSaver account which had a standard rate of 3.00% with eSaver Plus which has a base rate of 2.75% with an additional bonus rate of 1.25% in months when a minimum $200 deposit is made and no withdrawals.

Try our Savings Compare tool that makes it easy to see the conditions that can apply to special rates.

Mozo Rate Chasers Roundup – August 2014 was last modified: September 1, 2014 by Peter Marshall

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