Need info on the latest interest rates or news about the reserve bank decisions? At Mozo, we track hundreds of Australian financial institutions - from the big 4 banks to the smallest of online lenders and credit unions. We also keep a very keen eye on the reserve bank cash rate and how the banks, credit unions and building societies react to rate changes. If you need to find the best interest rates in Australia for home loans, term deposits or savings accounts, Mozo has got you covered.
When you are researching your home loan or personal loan make sure you are comparing apples with apples. Look for the comparison rate information as this takes into the interest rate, account fees and charges into single rate to show you the true cost of a loan and help you pick the best one. Remember the lowest rate is not always the best interest rate - also important to think about features such as repayment options and any ongoing fee that will impact how much interest you pay.
The Reserve Bank has opted to keep the official cash rate steady at 1.50% for the ninth month in a row as the 2016/17 financial year wraps up, and economists are expecting it to stay there for a while.Read more...
Unsurprisingly, the Reserve Bank announced today that interest rates would stay put at 1.50% for April.Read more...
The Reserve Bank of Australia is the body who sets the official cash rate, which is the standard against which banks set their own interest rates.
The RBA meets on the first Tuesday of every month and discusses the state of the national economy, including things like consumer confidence, inflation, economic growth and employment levels. Based on these factors, the official cash rate either decreases, increases or stays the same.
This system is designed so that higher rates will discourage borrowing and spending, therefore lowering inflation. Lower rates do the opposite, increasing Australians’ ability to borrow and spend money, boosting the economy.
For the most recent information on the RBA cash rate, read our monthly reserve bank interest rate summary.
A fixed interest rate means that the interest on your loan or savings is locked in at a certain value, and isn’t affected by rises or falls in the market. This can be both a blessing and a curse, but if you like a sense of certainty with your finances, a fixed interest rate might be for you. A fixed interest rate makes budgeting easier, because you’ll know what the amount will be each month, whether it’s a repayment or extra money in your account.
Variable interest rates are more flexible, and shift with the market. They are also based on the RBA’s official cash rate, but unlike a fixed interest rate, they don’t lock in at any time. So if your loan or savings are working on a variable interest rate, the amount of interest you pay or earn can change day-to-day.
So you’re buying a new home, setting up a business or searching for a new car? Then you’re probably looking for a loan to make your dreams possible.
It’s important to do some research before you go ahead with choosing a lender, because the current interest rate will affect not only your monthly repayments, but how much you ultimately spend at the end of your loan term.
The goal is to secure a low interest rate on your loan to minimise the amount of interest you’ll need to pay, but that isn’t all you need to consider. Fees, charges, penalties and extra features are all things you need to take into account when choosing the best loan.
It might seem like a hard task, but it’s made easier by using the comparison rate. This is a rate that providers are required by the National Credit Code to show, and it factors in interest, fees and charges for a clearer picture of the real cost of a loan. That’s why, when you’re comparing products on Mozo, whether it’s home loans, car loans or personal loans, you’ll see an interest rate and a comparison interest rate.
Handy right? But there is one thing to keep in mind when using the comparison rate - it is a guide based a specified loan amount and timeframe (which is shown on Mozo’s comparison pages). Different loans will mean different comparison rates, so to find out exactly what you’ll be paying in interest, talk to your lender.
When you’re looking to make the most of your savings by earning as much interest as possible, your needs will be different depending on your goals. If you’re saving for a short term goal, a savings account with a high introductory interest rate might be just the boost your savings stash needs. Or, if you’ve got a decent chunk of funds but don’t need to access them, a term deposit might be a better space to park it for a while.
No matter how long you’re putting your savings away, the goal is to get a high return on your money, which means securing a high interest rate.
You should also consider special promotions like introductory interest rates or bonus interest rates, and be wary of account or transaction fees. Things like savings accounts or term deposits don’t show a comparison rate to keep track of these extra considerations, but here at Mozo, we’ll show them to you on our comparison pages.
We can’t stress enough the importance of comparing interest rates before you make a decision about your finances! At Mozo, that’s what we’re all about, but we know it can sometimes be hard, because not only do you need to consider the best interest rate available, but also any extras fees and charges that you might get hit with. So we’ve made it easier with some tools and resources that will guide you through securing yourself a great interest rate.
Check out our comparison pages! This is the first stop when looking for a great interest rate. You can see a side-by-side comparison of all the best offers on the market.
Read our dedicated guides. For a more in depth explanation check out our guides which cover everything from working out how much you can afford to borrow on your home loan, to how to make the most out of your savings account.
For more information on interest rates for different banking products, and for help understanding what interest rates are and how they work, visit our interest rates guide page.
Essentials Variable 80 (Owner Occupier, Principal & Interest)
Variable Home Loan (Owner Occupier)
Discount Ultimate Home Loan (LVR<85%, over $150k, Owner Occupier) (Fixed, Package)
Equaliser Home Loan (Owner Occupier)
Base Variable Rate Home Loan (Owner Occupier, Principal & Interest)