Mozo Money Moves: Australia’s favourite finance providers unveiled, term deposits continue to rise, and variable rates thaw

Welcome back to another Money Moves, the weekly wrap of finance news. 

This week, the nation’s favourite personal finance companies were revealed, we saw some variable home loan rate activity after radio silence last week, and the trend of short-term deposit rate rises continued (with a new bank taking pole position as a rate leader on some terms).

Mozo People’s Choice Awards 

The Mozo People’s Choice Awards were released this week, showcasing the country’s favourite banking, insurance, and utilities providers. 

The Awards recognise the companies with the highest levels of customer satisfaction, the best service, trustworthiness, and more.

The winners were selected based on the people’s voice, which Mozo’s data director, AJ Duncanson, says doesn’t get better than that. 

“Who better to listen to than the recommendations of thousands of Australians who have purchased these products or had personal experience with these companies?

“It’s their recommendations that drive the winners list, not ours,” he said.

For more information about how the Awards are conducted and the full list of winners, read the methodology report for this year.

Credit card moves 

In credit cards this week, a provider increased its rewards points offer and the Mozo People’s Choice Awards revealed the credit card providers Australians were most satisfied with.

The bonus points offer on Citi’s Premier Qantas Credit Card gained altitude, rising to 70,000 bonus Frequent Flyer points (previously 50,000). The offer still requires new customers to spend a certain amount on eligible purchases – $8,000 (an increase of $2,000 from the previous offer) – within the first 3 months from approval, and to keep their card open for over 12 months.

Mozo reveals Australia’s favourite credit card providers 

As part of the Mozo People’s Choice Awards, a survey of over 4,200 Australians found two stand-out credit card providers that rated highly for customer satisfaction. 

The winners, now featured on the best credit cards page, include American Express and Bendigo Bank.

Home Loan Moves

It’s been a slow news week in home loans, although the Mozo database did track some movement in variable rates after no activity last week. We also got a look at which lenders the Australian people are most satisfied with. 

Variable rates

Bank of us added a new variable rate offering, the FlexiDiscount Home Loan Rate Special, starting at 5.99% p.a. (6.02% comparison rate*) for owner-occupiers with <80% LVR (P&I loans from $20,000). The special rates only apply to new loans which are approved by 12 July 2024. 

Newcastle Permanent increased rates on its Discounted Variable Home Loan (Premium Plus Package) and Special Real Deal Home Loan by 0.05%. 

Greater Bank increased rates on its Discount Great Rate Home Loan for owners and investors with <80% LVR by 0.10%.

Bank of Sydney raised its owner-occupier BOS Basic Home loan rates by 0.05%, and changed its fees for all borrower options. The discharge fee increased by $100, now $400, they changed the legal fee to $250, removed the application fee, and increased the settlement fee by $50, now $200. 

BOS also increased its rates by 0.05% to 0.15% on the Expect More Home Loan package, including the No Annual Fee variant. 

Like on the Basic Home Loan, the discharge fee has also increased by $100, now $400, they changed the legal fee to $250, and increased the settlement fee by $50, now $200. BOS no longer covers up to $475 in legal fees and it will cost borrowers an extra $100 per additional security. The annual fee has decreased from $395 to $125 per year – obviously, this doesn’t apply to the No Annual Fee variant.

The average, owner-occupier variable rate in the Mozo database on 24 May 2024 is 6.80% p.a., while the average owner-occupier Big Four variable rate is 7.41% p.a. (for principal and interest loans, at $400k with 80% LVR).

Lowest Variable Home Loan Rates

Fixed rates

The Mozo database tracked only one fixed rate move this week: a cut from Beyond Bank. 

Beyond Bank cut some of its 1- and 2-year fixed rates by 0.10%. This applies to some Fixed Home Loan, Fixed Rate Total Home Loan (Package), and Fixed Rate Total Home Loan Special (Package) rates. 

This brings the average, owner-occupier fixed rate (for principal and interest, $400k loans, at 80% LVR) in the Mozo database on 24 May 2024 to: 

• 1-year: 6.48% p.a.
• 2-years: 6.36% p.a. 
• 3-years: 6.28% p.a. 
• 4-years: 6.51% p.a. 
• 5-years: 6.54% p.a. 

Lowest Fixed Rate Home Loan by Term

The home loans Australians are most satisfied with in 2024 

As part of the Mozo People’s Choice Awards, Australian borrowers were asked to rate how satisfied they are with their home loan lender. 

Three lenders came out on top: Bankwest, ING, and Macquarie. 

Term Deposit Moves

The trend of increases to term deposit interest rates of 12 months or below continues this week, giving short-term savers more opportunities to grow their savings. 

MOVE Bank now offers the highest 7- and 10-month term deposit rates in the Mozo database, giving savers with at least $5,000 access to a 5.25% p.a. interest rate. 

Bank of Queensland increased its 1-year term deposit rate by 0.15%, now 4.80% p.a.

Greater Bank increased its 3- and 6-month, and 1-year term deposit rates by 0.15% to 0.30%. 

ME increased its 6-month and 1-year term deposit interest rates by 0.30%. 

Gateway Bank increased its 6-month term deposit rate by 0.05%, now 5.20% p.a. 

Auswide Bank was the only ADI to cut some of their rates this week. Their 5-, 7-, 8-, and 10-month term deposits decreased between 0.05% to 0.50%. 

Coastline Credit Union removed its 9-month term deposit rate and added a 7-month option, at 4.80% p.a. 

The average term deposit rates in the Mozo database, as at 24 May 2024, for personal term deposit products at $25,000, are: 

• 3-months: 3.84% p.a.
• 6-months: 4.32% p.a.
• 9-months: 4.31% p.a.
• 1-year: 4.63% p.a.
• 2-years: 4.07% p.a. 
• 3-years: 3.90% p.a. 
• 4-years: 3.78% p.a.
• 5-years: 3.81% p.a.

Leading Term Deposit Rates - 1 Year

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As a part of Mozo’s commitment to making your money count for more, each month we “roundup” the rate changes, key banking trends and money moves in the Australian personal finance market. 

If you’d like to see the analysis in full once it’s released, you can subscribe to receive the Mozo Banking RoundUp here.

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