While an action-packed Easter getaway is most likely off the cards right now, your long weekend could still be a super productive one. In fact, why not use this time wisely to slap your finances into shape!
Here are four finance tasks to tackle this Easter weekend:
Day 1: Do some strength training on your savings stash!
It’s amazing what a difference six months can make; just last year interest rates were higher and social distancing wasn’t a thing. Savings rates in particular have taken a hit in the past few weeks, following the RBA’s emergency cash rate cut in mid-March.
Rather than treating your time off like a month of Sundays, why not strengthen up your savings stash by switching to a savings account with a higher interest rate!
Whether you signed up to your savings account last month or last year, chances are it’s no longer giving you the most competitive interest rate. In fact, the most competitive savings rates available in the Mozo database are currently more than 1% higher than the average ongoing savings rate, which is a low 0.80% p.a. right now*.
So why settle for an interest rate lower than 1% p.a. when the highest rate available is 2% p.a.? Here are the three most competitive ongoing savings rates available in the Mozo database:
- 86 400 Save Account - 2% p.a. (deposit at least $1,000 per month into your Pay or Save account to achieve the full interest rate).
- Bank of Queensland Fast Track Saver - 2% p.a. (deposit at least $1,000 per month into your Day2Day Plus account and make five eligible transactions to receive the full interest rate).
- MyState Bank Bonus Saver Account - 2% p.a. (deposit at least $20 each month and make five Visa Debit transactions with linked Everyday or Glide accounts).
Or if you’re not sure what type of account to go for, check out our article on three different types of savings accounts and who they’re suited to.
Day 2: Crunch some numbers and tone your credit card debt
In these days of forced penny pinching and home-cooked meals, now could be the perfect time to banish your credit card debt!
Why not use the money you usually spend on transport and cafe food and put it towards paying off your debt. To get you started on your way to a clean finance slate, the first thing might be to consider transferring your outstanding credit card balance to a balance transfer credit card. Usually with this type of card you will be able to benefit from a 0% annual interest rate offer on your transferred balance, meaning that your interest payments will be reduced considerably.
Of course there are a few things you might to want to do make the most of your card:
- Do NOT make any new purchases with your balance transfer card. While balance transfer cards come with a much lower interest rate for outstanding balances transferred from other credit cards, you will most certainly be hit with a much higher interest rate for any new purchases you make.
- Be realistic about how many interest free months you need. The lower interest rate offered with balance transfer cards is usually only for a limited amount of time. So be smart about how many months you need realistically to pay off your debt before the higher interest rate kicks in. You can use our credit card debt repayments calculator to figure out how long and how much you will need to pay off each month, to clear your debt within the allotted time.
- Watch out for fees! While a balance transfer card could save you money on interest payments, one thing to watch out for is fees. Possible fees to look out for include an annual fee for the card and a fee to transfer your outstanding balance onto it.
Day 3: Burn kilowatts on your energy bill and re-energise your plan
According to data from Mozo, working from home could cost the average Australian family an extra $527 over six months! That’s a hefty sum of money to be forking out in these uncertain times, so what can you do to safeguard yourself against energy bill shock?
Well the first thing you could think about doing is reviewing your energy plan. Reviewing an energy plan is something that often falls by the wayside for many, but by having a look at what you’re spending and switching providers, you could save yourself some serious dollars. In fact, after comparing 427 plans from 37 different providers, Mozo recently worked out that Australian households could save around $544 in one year, just by making the switch to a better energy deal.
You can compare plans on Mozo’s compare electricity plans page, just enter your postcode to get started.
Day 4: Regulate your routine by refinancing your home loan
While plummeting interest rates might be bad news for savings accounts, it’s good news for home loans! That’s right, rates are dropping all across the board and that applies to home loans too.
Home loan rates are so competitively low right now that they’ve well and truly dipped into the 2% range and could drop even lower if interest rates continue to fall.
By comparing the average variable home loan rate (3.45% p.a.) with the lowest variable rate available in the Mozo database at the moment, our team of data experts figured out that you could save around $81,839 over the lifetime of a $400,000 30-year home loan^.
So if you signed up to your home loan a few years ago, when rates were higher, now might be the time to give it a rethink. Could you be getting a better interest rate? Are you making use of all the features that come with your home loan?
You might have thought that an offset account option was a good idea five years ago, but if you haven’t used it and you don’t intend to then you might even want to find a simpler home loan with less fancy features. Or, if you originally signed up to a nothing-but-the-basics sort of loan and now you’re keen to have access to some handy features, such as a free redraw facility, then you might want to see what other home loan options are out there.
Keen to get started? Why not check out the refinance home loan deals below or head to our refinance home loans hub for a longer list of home loans on the market right now.
You could even use Mozo’s home loan comparison calculator to compare rates and figure out how much you might save.
Finally, once you’ve done all that feel free to crack into an Easter egg, you deserve it!
^This saving comes with Reduce Home Loans Rate Slasher Variable Home Loan, for which variable rates start as low as 2.39% p.a. for owner-occupier, principal and interest loans with an LVR of 80% (2.39% p.a. comparison rate*).
Compare refinance home loans - page last updated October 27, 2020
Smart Home Loan 80
Fixed Rate Home Loan
Celebrate Variable Home Loan
UHomeLoan - Discount Offer
Fixed Home Loan Special Offer
^See information about the Mozo Experts Choice Home Loans Awards
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