As the nation continues to take each day as it comes, many lenders have shown no sign of slowing down. Fixed home loan rates continued to dominate the number of cuts made to mortgage products in May, while credit cards experienced a lull, after a busy April.
And although at-call deposits continue to tumble, interestingly, many providers like ME Bank and UBank have given customers to grow their balance during the COVID-19 pandemic by either waiving bonus rate conditions or having the ability to earn the maximum interest rate across multiple accounts.
For a more comprehensive look at all the banking charges the Mozo database recorded over the last 31 days, have a read of our May 2020 Mozo Banking Roundup.
Some of the lenders with variable Home Loan rates that are already sharp made further cuts this month, but it was fixed rates that got most attention once again.
Only a few Credit Cardoffer changes to report this month, although the cards that paused new applications in April remain unavailable to new customers.
Several lenders made large cuts to Personal Loan rates, and one of the major banks launched a limited time special offer.
Two of the At Call Deposit rate leaders cut their rates in the last month, but still sit amongst the top of the pack, while neobank, Xinja made the tough but inevitable decision to cut its rate.
The heavy cutting of Term Depositrates continues, with the average rate for a 12 month deposit down 16bp in the last month alone.
*WARNING: This comparison rate applies 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.
After a flurry of action in April with quite a few cards either being withdrawn or ceasing new applications, there were only a handful of offer changes in May. None of the cards that temporarily paused new applications are available again yet.
The providers with temporary pauses on new applications are Virgin Money with the High Flyer and Flyer Cards (No Annual Fee and Low Rate Cards are still available), Jetstar the Jetstar Credit Card, Woolworths Everyday Platinum and Qantas Platinum Credit Cards, Macquarie Bank all credit cards including Myer branded cards.
Hunter United discontinued its Credit Card after they merged with IMB Bank.
Bendigo Bank swapped the 0% for 18 months balance transfer offer for a 0% for 15 months introductory purchase rate on both its Low Rate and Platinum Rewards Mastercards. The spend required to qualify for 50,000 bonus rewards points on the Platinum Rewards Mastercard was increased from $1,500 in the first 3 months to $3,000.
Police Bank removed the 0% for 12 months introductory purchase rate on its Visa Credit Card.
While few in number, the rate cuts for Personal Loans last month were all quite large, and one of the major banks launched a special offer.
Bankwest dropped the rate on its Unsecured Personal Loan by 100bp to 10.99% (11.81% comp rate*).
Beyond Bank has reduced rates across its range of personal loan options. The No Fee Car or Personal Loan option is down 90bp to 7.99% (7.99% comp rate*), the Low Rate Car or Personal Loan option down 100bp to 6.99% (7.62% comp rate*) and the Flexi Personal Loan now at 12.99% (13.25% comp rate*) for both the fixed (down 51bp) and variable (down 46bp) options.
NAB is waiving the $150 application fee on its Personal Loan for a limited time, although how limited has not yet been said.
People’s Choice Credit Union has reduced the rate on its Discounted Personal Car Loan for loans of more than $20,000 by 99bp to now be at 4.65% (4.99% comp rate*).
*WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies 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.
Little surprise that virtually all changes to at call deposit rates last month were cuts. This included the two we listed last month as ongoing bonus rate leaders, although they both still offer the equal best rate of that type. We also saw a range of rates being adjusted downwards by small amounts, particularly although not exclusively, by mutuals.
Bank Australia reduced the ongoing bonus rate on its Bonus Saver by 10bp to 1.25%.
Bank of Queensland continues to offer the equal leading ongoing bonus rate even after cutting its Fast Track Starter headline rate by 15bp to 1.85%.
Similar to Bank of Queensland, MyState remains an ongoing bonus rate leader after cutting its Bonus Saver Account headline rate by 15bp to 1.85%.
Newcastle Permanent dropped the ongoing bonus rate on its Smart Saver Account by 20bp to 1.15% and the introductory rate on its Online Savings Account by 15bp to 1.45%.
Westpac cut the headline rates on both its introductory and ongoing bonus rate products by 25bp, now both at 1.05%.
Xinja announced that while its Stash Account remained closed to new applications, the standard rate of 2.25% would be cut to 1.80% - still the best unconditional rate in Mozo’s database.
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