1.99% mortgage rate, government support and small businesses: This week’s best banking news
- Loans.com.au introduce new home loan rate below 2.00%
- What the Jobkeeper and Jobseeker extensions could mean for you
- Small business support: SME Loan Guarantee extended
- Meet Dabble! Xinja’s new venture into share trading
- Aussie spending set to drop as restrictions tighten again
- What type of pandemic shopper are you?
All in this week’s best banking news: editor’s pick.
Say hello to the 1.99% variable mortgage rate from loans.com.au
On Wednesday, online lender loans.com.au unveiled its lowest home loan variable rate: 1.99% (2.55% comparison rate*).
Named the Smart Booster Home Loan, the new competitive rate is available for owner-occupiers and refinancers who have a deposit or equity of 20% or higher.
The 1.99% discount rate applies for the first year of the loan, after which it reverts to a still competitive 2.57% variable rate.
According to the Mozo database, loans.com.au is now one of three lenders to offer home loan rates below 2.00%.
Read full article: Loans.com.au unveils its new 1.99% variable rate home loan and find out what loans.com.au managing director, Marie Mortimer says about this hot new rate.
JobKeeper and JobSeeker payments extended: what it could mean for your finances
Recent Mozo data revealed that over a quarter of workers relying on JobKeeper and Jobseeker payments won’t be able to afford rent or mortgage payments if the support were to stop. That’s 1.3 million Aussies.
However, on Tuesday the Morrison Government announced that both the JobKeeper and JobSeeker support packages will be extended beyond the planned end date next month.
Here’s a breakdown of what will change:
| JobKeeper | JobSeeker |
| - Extended to March 2021 - From Sept 28: reduced to $1,200 a fortnight (full time) and $750 for those working less than 20 hours per week - From March 2021: reduced to $1,000 a fortnight (full time) and $650 for those working less than 20 hours per week | - Bring reviewed end of 2020 - From Sept 28: reduced to $250 a fortnight & income threshold increased to $300 - From Aug 4: mutual obligation requirement to resume job searches through employment services provider will recommence |
Read full article: JobKeeper and JobSeeker extensions: What the new payments mean for you to check out how to get your payment extension.
SME Loan Guarantee Scheme extended to help Aussie businesses recover
This week, the government announced that it is extending the SME Loan Guarantee Scheme which was set to end on September 30 of this year.
The new phase of the scheme will run from October 1, 2020 until June 30, 2021 and allow small to medium-sized businesses (SMEs) to borrow larger amounts up to $1 million.
Under the current scheme, the federal government guarantees 50% of business loans for SMEs from 41 participating lenders. At the moment the guarantee covers three-year unsecured loans of up to $250,000.
However, from October the scheme will also include secured loans, longer repayment periods (up to five years) and apply to a wider range of funding purposes.
Read full article: SME Loan Guarantee Scheme extended to support small business recovery to check out some of the 41 lenders are participating in the scheme.
Want to ‘Dabble’ in share trading? Xinja plans to let customers do just that
Aussie neobank Xinja has announced its plans to launch Dabble, a share trading platform within the neobank’s app.
Aussie users will be able to buy over 3,000 US stocks and ETFs (exchange traded funds) all within the palm of their hands. The platform comes without any brokerage costs, however there will be an $8 monthly subscription fee and 1% foreign exchange margin.
Customers will be able to buy shares using their linked Xinja Bank Account and are tracked through the Xinja app (in both AUD and USD). The platform is not yet available to investors and the launch is still subject to regulatory approval.
Read full article: Xinja unveils share trading platform Dabble for words from Xinja’s founder and chief executive, Eric Wilson.
Aussies to spend less as restrictions backflip, says Zip
Last month, Aussie spending crept back up as life seemed to be getting back to “normal.” But with the curveball of tightened restrictions in July, those numbers may plummet again.
Co-founder and chief operating officer of Buy Now Pay Later platform, Zip, Peter Gray says that while in June it looked like Aussie businesses were recovering, it may not be enough to survive a second wave of lockdowns.
Zip’s Weekly Spending Index showed that restaurants, cafes, pubs, bars and gyms all saw relative growth in spending over June, however they are still struggling compared to this time last year.
For example, pubs and bars were down 30% in June compared to 2019, and gyms are down 19%. And with more lockdowns potentially on the horizon, these industries may suffer even more.
Read full article: Aussie spending threatened as restrictions rebound, says Zip for a more comprehensive breakdown of Aussie spending in June.
4 types of pandemic shopper: which one are you?
According to Deloitte’s State of the Consumer Tracker report surveys, the coronavirus pandemic has categorised shoppers into four different types.
The report surveys ten different countries, including Australia and is updated every few weeks. Here’s what the types of shoppers it found:
- The stockpiler: Remember toilet paper madness? Well, the number of Aussies stockpiling has actually risen again in the past few weeks, to around 34% of shoppers.
- The bargain hunter: 44% of Aussies say they will be cutting back on non-essentials like alcohol, clothes, books, electronics and takeaway over the next month.
- The socially conscious shopper: 48% of Aussies claim they’ll prioritise buying local over the next four weeks.
- The convenience seeker: 41% of people are more likely to buy something if it is more convenient.
Read full article: How the pandemic created four types of shopper for a deeper look into Deloitte’s statistics.
Been spending less and savings more? Check out these killer savings accounts options to store your pandemic stash!
Compare Savings Accounts 2020
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Savings Account
5.50% p.a. (for $0 to $250,000)
5.00% p.a.(for $0 to $1,000,000)
Yes up to $250,000
Bonus variable rate is available for the first 4 months.
Enjoy a high interest savings account with no account keeping fees to pay. Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace. Multiple 2024 Mozo Experts Choice Award winner.
CompareCompareSavings Account
Enjoy a high interest savings account with no account keeping fees to pay. Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace. Multiple 2024 Mozo Experts Choice Award winner.
- Maximum rate
- 5.50% p.a. (for $0 to $250,000)
- standard interest rate
- 5.00% p.a.(for $0 to $1,000,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus variable rate is available for the first 4 months.
- Access
- BPay, Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must have a Macquarie Transaction Account to link with.
Read reviews and learn more about Macquarie savings accounts
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Bonus Saver
5.00% p.a. (for $0 and over)
1.00% p.a.(for $0 and over)
Yes up to $250,000
Bonus interest for the first four months from the account opened date. No minimum balance required. No monthly or ongoing fees or withdrawal penalties. Manage your money easily via phone or online banking or via the BCU Bank app.
CompareCompareBonus Saver
Bonus interest for the first four months from the account opened date. No minimum balance required. No monthly or ongoing fees or withdrawal penalties. Manage your money easily via phone or online banking or via the BCU Bank app.
- Maximum rate
- 5.00% p.a. (for $0 and over)
- standard interest rate
- 1.00% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate for the first 4 months from account opening.
- Access
- BPay, Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- -
Read reviews and learn more about BCU Bank savings accounts
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PremiumSaver
5.35% p.a. (for $0 to $250,001)
1.45% p.a.(for $0 and over)
Yes up to $250,000
Increase balance by $200 by the end of each month
Reward yourself with a higher rate for your good savings habits. Rabobanks’s PremiumSaver is simple - receive the maximum rate when you grow your balance by at least $200 each month (T&Cs apply). Plus, your savings help our Aussie farmers produce the food we love to enjoy.
CompareComparePremiumSaver
Reward yourself with a higher rate for your good savings habits. Rabobanks’s PremiumSaver is simple - receive the maximum rate when you grow your balance by at least $200 each month (T&Cs apply). Plus, your savings help our Aussie farmers produce the food we love to enjoy.
- Maximum rate
- 5.35% p.a. (for $0 to $250,001)
- standard interest rate
- 1.45% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Maximum rates apply when your closing balance on the last day of the month is at least $200 more than it was at the beginning of the first day of the month (excluding interest earned).
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account. Must hold and maintain a HISA.
Read reviews and learn more about Rabobank savings accounts
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Mozo experts choice awards won:
- High Interest Savings - 2024
Savings Maximiser
5.50% p.a. (for $0 to $100,000)
0.55% p.a.(for $0 and over)
Yes up to $250,000
Deposit $1,000 into a personal ING account, make 5 eligible transactions with a linked Orange Everyday account and grow the balance each month.
Great variable rate every month when you grow your balance each month in addition to other eligibility criteria. No ING fees to pay. Save even more with ING Everyday Round Up. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
CompareCompareSavings Maximiser
Great variable rate every month when you grow your balance each month in addition to other eligibility criteria. No ING fees to pay. Save even more with ING Everyday Round Up. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
- Maximum rate
- 5.50% p.a. (for $0 to $100,000)
- standard interest rate
- 0.55% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- For customers who deposit $1000 from an external source into a personal ING account (excluding Orange One and Living Super), make 5 eligible transactions and grow their nominated Savings Maximiser account each month so there is more in the account at the end of the month than there was at the start of each month (excluding interest). The total bonus interest rate is available on balances up to $100,000 on one Savings Maximiser the next month after meeting eligibility.
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must be linked to an Orange Everyday transaction account to receive the bonus rate. Where multiple Savings Maximiser Accounts are held, the bonus rate is only applied to one nominated account.
Read reviews and learn more about ING savings accounts
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Savings Accelerator
3.55% p.a. (for $0 to $50,000)
2.85% p.a.(for $0 to $50,000)
Yes up to $250,000
New customers receive an introductory bonus 0.70% p.a. variable kick starter rate for the first 4 months on balances up to $500,000.
Enjoy the flexibility to access your funds with no monthly deposit requirements or lock-in terms. No ING fees to pay. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
CompareCompareSavings Accelerator
Enjoy the flexibility to access your funds with no monthly deposit requirements or lock-in terms. No ING fees to pay. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
- Maximum rate
- 3.55% p.a. (for $0 to $50,000)
- standard interest rate
- 2.85% p.a.(for $0 to $50,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- New ING personal savings customers receive an introductory bonus 0.70% p.a. variable kick starter rate for the first 4 months on balances up to $500,000. Reverts to variable ongoing rate.
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read reviews and learn more about ING savings accounts
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Life - 18-29 years old
5.20% p.a. (for $0 to $30,000)
1.85% p.a.(for $0 and over)
Yes up to $250,000
Make 5 eligible card purchases per month with a linked Westpac Choice account, make one eligible deposit and grow the balance each month. Account balance must not fall below $0.
Are you 18 - 29 years of age? Earn up to a generous variable interest rate on your savings when you spend and save with Westpac. For individuals aged 18 to 29 on Westpac Life account balances up to $30,000.
CompareCompareLife - 18-29 years old
Are you 18 - 29 years of age? Earn up to a generous variable interest rate on your savings when you spend and save with Westpac. For individuals aged 18 to 29 on Westpac Life account balances up to $30,000.
- Maximum rate
- 5.20% p.a. (for $0 to $30,000)
- standard interest rate
- 1.85% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Make 5 eligible card purchases per month with a Westpac Choice account and min 1 eligible deposit and account balance must not fall below $0 and should have higher balance on the last business day than at the beginning of the month in Life savings account.
- Access
- Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must hold a Westpac Choice transaction account. If 5 eligible card purchases are made each month, but savings account balance has not increased, a 1.85% interest rate still applies.
Read reviews and learn more about Westpac savings accounts
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^See information about the Mozo Experts Choice Savings Account Awards
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