Mozo Money Moves: Deposit rates dip, further fixed rates fall ahead of RBA call, plus the latest personal loan perks and People's Choice Awards

Welcome to Money Moves, your weekly rundown of what’s shifting in the world of interest rates and financial products. This week, potential homebuyers are in somewhat of a wait-and-see mode ahead of next Tuesday’s cash rate decision – but that hasn’t stopped a wave of pre-emptive action by the banks on term deposits and home loan rates.

As was the case last week, fixed rate home loans saw broad reductions across many providers. Additionally, some personal loan deals got a facelift, and the winners of Mozo’s highly acclaimed People Choice Awards 2025 were revealed.

Here’s what you need to know.

RBA rate cut decision looms

With the Reserve Bank of Australia’s (RBA) next interest rate decision due Tuesday, 20 May 2025, speculation is heating up around a potential cut.

With rate reductions already flowing through to term deposits (see below), it’s likely savers will continue to bear the brunt of any easing next week.

Deposit rates trimmed ahead of RBA

Term deposit rates have continued their downward slide this week, with more than a dozen providers cutting rates across various terms. With markets widely expecting the RBA to cut the cash rate at its 20 May meeting, banks are repositioning their deposit offerings in advance.

Short and medium-term deposits were the hardest hit, particularly in the 6–12 month range. Unity Bank, G&C Mutual, and Geelong Bank each cut up to 25 basis points from key terms.

Westpac, along with its subsidiaries BankSA, Bank of Melbourne, and St.George, trimmed their 11-month special offer rates by 10 basis points, while Heartland Bank, Alex.Bank, and several mutual banks also revised down longer-term deposit rates.

However, it wasn’t all bad news for savers this week. A few providers bucked the trend with rate hikes, including Bank of Sydney, BCU Bank, and P&N Bank, suggesting that some niche or regional players are still chasing deposits.

As we edge closer to the RBA’s announcement, savers face the very real possibility that this week’s trimmed returns won’t be the last.

Key term deposit changes this week

Fixed home loan rates heading south

Not dissimilar to last week, fixed rates were on the move this week – mostly downward – as several lenders made notable adjustments across their 1-5 year terms.

Auswide Bank

Auswide introduced a 2-Year Fixed Rate Special Offer on its Home Loan Plus with Freedom Package this week. Score 5.24% p.a. (6.24% p.a. comparison rate*) for owner-occupiers, making Principal & Interest (P&I) repayments with a loan-to-value (LVR) ratio of <80%.

Unity Bank

Unity’s fixed rates were trimmed across all standard terms, with 20-25 basis point reductions.

*WARNING: The comparison rates above apply only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

SWS Bank offers a viable option for larger home loans

South West Slopes Bank’s (SWS Bank) Premium ‘Special’ Fixed Rate Home Loan, boasts an attractive 4.99% p.a. (comparison rate* 6.15% p.a.) interest rate, fixed for three years. 

First offered in September 2024, the loan remains a standout option for borrowers buying or refinancing higher-value properties as the minimum loan amount is at least $800,000.

The loan provides a unique opportunity to secure a competitive rate starting with a 4, which is especially appealing in today’s market of fluctuating interest rates. It’s available for loans up to $2.5 million, catering to those who need a large loan but want the certainty of fixed repayments.

The loan comes with no application or monthly fees, which means fewer costs throughout the life of the loan. Borrowers can also make additional repayments of up to $20,000 per year without penalty, allowing for faster loan repayment and potential interest savings. For added flexibility, a redraw facility is also available, providing access to extra repayments if needed.

Lowest variable rate vs average rates on Mozo

Seeing home loans side-by-side can help you to understand how each of them stack up. Below we’ve compared the average variable rate home loan against the lowest rate and the Big Four average variable rate. The lowest owner occupier variable rate loan in Mozo’s database is Gateway Bank’s Green Plus Home Loan at 5.60% p.a. (5.88% p.a. comparison rate*). However, there are certain environmental criteria that must be met to be eligible for this loan.

After that it's Homeloans360 Owner Variable Home Loan at 5.64% p.a. (5.64% comparison rate*).

Personal loans: rate cuts and new perks

Personal loan providers were active this week, slicing rates and introducing new benefits.

Plenti trims rates for all borrower tiers

Plenti lowered rates on both fixed and variable loans, with reductions across all credit profiles.

These changes may appeal to Australians planning home improvements, energy-efficient upgrades, or debt consolidation, particularly with better rates for strong credit scores.

*WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rates are based on an unsecured personal loan of $30,000 for a term of 5 years.

ANZ introduces 1% discount for car and renovation loans

While its $250 cashback offer expired on 11 May, ANZ has launched a new deal for unsecured personal loans. Eligible borrowers can now receive 1% interest rate discount on loans for car purchases, home improvement, or energy-efficient purposes, up to $75,000.

This applies to both fixed and variable ANZ personal loans, giving borrowers another reason to consider the major bank despite rising competition from digital lenders.

Coles launches credit card offer, extends Flybuys perks

Coles Mastercard has made some promotional tweaks across its Mastercard products:

• Coles Low Rate Mastercard now features a 0% p.a. introductory purchase rate for 6 months, though its previous balance transfer offer has been withdrawn.
• Coles Rewards Mastercard (Flybuys) extended its popular 10% off shop offer (up to $50 per month) for new Coles Plus Saver members who link their Flybuys. The expiry has been pushed from 14 May to 30 June 2025, with benefits now valid until April 2026.

People’s Choice Awards 2025: Discover the winners

This week, Mozo revealed the winners of its 2025 People’s Choice Awards for banking and finance, based on feedback from over 4,000 everyday Australians. The awards celebrate financial providers that customers believe offer exceptional value, trustworthiness, and service.

Standout performers in 2025 were ING, Bank Australia, Great Southern Bank, and Macquarie, all of which earned high praise across multiple categories. ING led the pack with six award wins, including recognition for outstanding customer satisfaction and trust, setting a high benchmark for service excellence.

Bank Australia wasn’t far behind with five category wins, continuing its strong reputation for customer-first banking. Great Southern Bank and Macquarie picked up four awards apiece, affirming their commitment to providing competitive products backed by responsive service.

In the Outstanding Customer Satisfaction category – one of the most prestigious – multiple banks were recognised for delivering excellent all-round experiences, including Newcastle Permanent and Up, alongside the top four award leaders.

It wasn’t just the banks that shone. Superannuation funds like Australian Retirement Trust and Colonial First State were also among the most decorated institutions, each receiving multiple awards for categories such as clear communication and most recommended.

“These awards stand as a consumer-backed endorsement of the brands who have earned the trust and respect of their customers,” Mozo data director AJ Duncanson said, who noted that the awards provide a valuable guide for Australians choosing new financial providers.

“These institutions have demonstrated a consistent commitment to delivering quality banking experiences, earning them the trust and loyalty of Australian consumers,” he added.

See all the winners and learn how they were chosen at the Mozo People's Choice Awards 2025.