Dollarmites, American Express, used car sales: This week’s best banking news
- ACT second state to bid farewell to Dollarmites in schools
- New American Express business loans set to help SMEs
- Fear of public transport sees spike in used car sales
- Looking for a Green Loan? CommBank’s just dropped one with a low 0.99% rate
- CommBank Neo: why millennials have flocked to this interest-free credit card
- Millennials are jumping on the share trading bandwagon
All in this week’s best banking news recap: editor’s pick.
Why the ACT is the second Aussie state to ditch Dollarmites in schools
Heard of CommBank’s Dollarmites? You may even have been one back in the day.
Well, some Aussie states are snuffing this school banking program. In fact, from July this year the ACT will be the second state to ditch it.
This came after a ban was passed by the ACT’s Legislative Assembly by a unanimous vote.
The ban is in response to a report released by the Australian Securities and Investment Commission (ASIC) in December last year which exposed that this program was more focused on marketing financial products rather than improving childrens’ saving habits.
Victoria was the first state to introduce a ban on the Dollarmites program in school, which commenced the first term of 2021.
Read full article: Ditching Dollarmites: A new way forward in student financial literacy to find out how schools plan to teach kids about money.
Credit card giant American Express launches business loan product
For the first time outside of the United States, American Express has launched a business loan.
The credit card - and now loan - provider decided to make this move in response to the increased number of small to medium enterprises (SMEs) looking to take out over $130 billion of additional capital in 2021.
American Express has partnered with global organisations platform ODX in order to get the loans going. Currently, loans will range from $5,000 to $250,000 and will have interest rates from 10.95%.
Read full article: American Express launches business loan to assist SMEs and see what vice president of Global Services for American Express, Martin Seward, has to say about the new venture.
Used car sales through the roof as people shun public transport
Aussie drivers are forking out over 40% more on pre-loved vehicles compared to pre-Covid times, fresh numbers from data firm Datium Insights reveal.
And there are two common reasons for it:
- Fear of public transport
- Desire to explore Australia on road trips
Datium Insights analyst, Tanim Ahmed said he saw a 15% decrease in car sales during the early stages of the pandemic. However, the market has turned around.
“When trade started to resume again, the stock of new cars [from international manufacturers] was so restricted people were limited in what they could buy and that demand spilled over into used cars. That’s an effect that’s still happening today,” he said.
In addition, mechanics have also seen a spike in the number of pre-purchase inspections and/or roadworthy certificates.
Read full article: Used car sales skyrocket as fears of public transport grow for some ways to fund your wheels in 2021.
Meet CommBank’s new 0.99% Green Loan
Major bank CommBank is set to launch a new green loan option to customers that adopt renewable and sustainable technology into their homes.
With a low 0.99% secured fixed rate, the CommBank Green Loan will be made available to existing CommBank home loan customers (owner occupiers and investors). It is designed to fund the installation of small-scale renewable technologies such as solar panels, battery packs and electric vehicle chargers.
Loan amounts go up to $20,000 and CommBank has said there will be no upfront establishment fee, ongoing monthly service fee or early repayment penalty attached to this product.
Read full article: CommBank's new 0.99% Green Loan to help Aussies purchase renewable technology for comments from CommBank group executive Angus Sullivan.
Aussie millennials take up CommBank’s interest-free credit card
At the end of last year, CommBank launched Neo - an interest-free credit card.
According to stats released by the bank, younger Aussies have jumped on board this new form of credit. The numbers show that one third of all credit card approvals in December of 2020 were for the new Neo card. And of those applicants, over half were within the millennial age bracket.
Essentially, CommBank Neo has no interest rate or late fees - but instead charges customers a monthly fee depending on their credit card limit. ($12 for $1,000 credit limit, $18 for $2,000 credit limit and $22 for $3,000 limit).
“It’s obvious and right to observe your traditional vanilla credit card offering is seeing some challenges at the moment,” said CBA retail banking executive Angus Sullivan.
“There has been an innovation around the way you structure (credit) … and I think Neo taps into that. It’s really easy for customers to get their head around it.”
Read full article: CommBank's interest-free credit card surges in popularity amongst millennials and find out why this age bracket is so keen to adopt credit alternatives.
More millennials turn to share trading
It’s no secret that savings rates are pretty dire. So naturally, Aussies are looking for other ways to grow their stash - including millennials.
As a result, many young savers have turned their focus to the stock market to try their hand at share trading.
Research from RMIT’s senior lecturer of finance, Dr Angel Ahong revealed that the amount of retail trading by individual investors increased by over 60% during lockdown compared to pre-COVID.
In addition, CommSec (CommBank’s share trading platform) recorded that their customers with no trading experience went from 8% before February to 18% in December. And 83% of those customers were made up of people under the age of 44 - in the millennial, Gen X and Gen Z age brackets.
Read full article: Share trading surges among millennials, but are they jumping in too quickly? for a deep dive on why share trading is on the rise.
Not ready to make the jump to shares and want to find a more competitive savings account than the one you have right now? Check out these options below!
Compare savings accounts
-
Reward Saver Account
5.25% p.a. (for $0 to $1,000,000)
0% p.a.(for $0 and over)
Yes up to $250,000
Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.
Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.
CompareCompareReward Saver Account
Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.
- Maximum rate
- 5.25% p.a. (for $0 to $1,000,000)
- standard interest rate
- 0% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.
- Access
- ATM, EFTPOS, Visa Debit, Cheque book, BPay, Branch access, Phone banking, Internet banking, Bank@Post
- Minimum balance
- $0.00
- Other restrictions
- -
Read reviews and learn more about IMB Bank savings accounts
-
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
-
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
-
Online Savings Account
5.20% p.a. (for $0 and over)
1.00% p.a.(for $0 and over)
Yes up to $250,000
Bonus rate for the first 3 months from account opening.
Complement your banking with an introductory bonus rate offer. Earn additional bonus interest for the first 3 months. No minimum monthly deposit required to earn interest. No account keeping fees. No minimum opening balance. Manage your account 24/7 using the app.
CompareCompareOnline Savings Account
Complement your banking with an introductory bonus rate offer. Earn additional bonus interest for the first 3 months. No minimum monthly deposit required to earn interest. No account keeping fees. No minimum opening balance. Manage your account 24/7 using the app.
- Maximum rate
- 5.20% 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 3 months from account opening.
- Access
- BPay, Branch access, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Branch access is for deposits only. Must be linked to an Everyday Account, Home Loan or Credit Facility with this provider.
Read reviews and learn more about Newcastle Permanent savings accounts
-
Bonus Saver Account
5.00% p.a. (for $0 to $250,000)
0.05% p.a.(for $0 and over)
Yes up to $250,000
Deposit at least $20 each month and make 5 Visa Debit transactions with a linked Glide account.
Open a Bonus Saver Account in under 5 minutes. There are no fees to pay or penalties for withdrawing money. Get a seamless personalised insights and online statements via the My State Bank app.
CompareCompareBonus Saver Account
Open a Bonus Saver Account in under 5 minutes. There are no fees to pay or penalties for withdrawing money. Get a seamless personalised insights and online statements via the My State Bank app.
- Maximum rate
- 5.00% p.a. (for $0 to $250,000)
- standard interest rate
- 0.05% 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 when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Glide transaction account.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read reviews and learn more about MyState Bank savings accounts
-
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
Your selected interest rates
Your selected interest rates
Your selected interest rates
Your selected interest rates
Your selected interest rates
Your selected interest rates
^See information about the Mozo Experts Choice Savings Account Awards
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.