RBA rate cut, climate change, Christmas gift card: This week’s best banking news

• The Reserve Bank of Australia cuts its official cash rate to 0.1% 
• Australia faces losing $3 trillion if no climate action is taken 
• SendFX announces $100 gift card for money transfers 
• Is a no annual fee or low interest credit card better? 
• How to transfer your insurance policy when you buy a new car 
• October 2020 Mozo Banking Roundup 
  

All in this week’s best banking news: editor’s pick.

RBA rate cut: Which banks have cut rates so far in November? 

On Tuesday, the Reserve Bank of Australia (RBA) dropped its official cash rate to 0.1%.

Unlike previous cuts where the board slashed rates by 25 basis points, this time they decided on 15 basis points instead. 

In response, there has been a major focus by home loan bank lenders on fixed rates rather than variable ones. 

So far, CommBank, NAB and Westpac have all announced reductions to fixed home loan rates, while ANZ has made no announcement. Similarly, banks like Bank of Melbourne, BankSA and St.George also cut fixed mortgage rates. 

Alternatively, online lenders turned their attention to variable rates, with Athena, FreedomLend, Homestar and homeloans.com.au announcing drops. 

Read full article: November RBA cut: Which banks have cut home loan rates? For a full rundown of products affected by the rate cut. 

More than $3 trillion could go down the drain if Australia doesn’t take climate action over the next 50 years 

The Australian economy could lose $3.4 trillion or more by 2070 if a sustainable way of growth isn’t prioritised, says Deloitte Access Economics. 

Fresh numbers from their report revealed a projection of 880,000 fewer jobs over the next 50 years as a number of industries face losses if carbon emissions continue unchecked. 

Those expected to be hit the hardest are the mining, manufacturing, tourism and service industries, each set to lose approximately $330 billion to $1.5 trillion in growth. 

SendFX gift customers $100 reward this Christmas

As Christmas approaches, international money transfer service SendFX is offering new customers a $100 EFTPOS gift card. 

Until the end of December, if you register for a free SendFX account and make transfers greater than $1,000 AUD you could receive the gift card.  

After you apply and make your first transfer, the card should arrive within 30 days or less. You can then redeem the $100 credit at any checkout that accepts EFTPOS. 

Read full article: Christmas is coming! SendFX announces $100 reward for your money transfer for more on SendFX. 

Credit card comparison: No annual fee vs Low interest rate

Don’t know if your current credit card fits quite right in your budget? It might be time to compare other options! 

This week, we weighed up no annual fee credit cards against low interest rate options. Here’s what we found: 

No annual fee: 

• Good for someone who uses card sparingly and pays down balance month on month, as generally come with higher interest rate 

Low interest rate: 

• Useful for a credit card user that doesn’t always pay down their balance in full. These cards can be handy for big purchases to pay down gradually, as rates are often below 14%. 

Read full article: No annual fee vs Low interest credit card, which is better? for some hot credit card deals to weigh up right now. 

Can I transfer my existing insurance policy to my new car?

Buying a new car but don’t want to go through the fuss of getting fresh insurance? Well, your insurer might let you transfer your existing policy to your new vehicle. 

You can do this by calling up your insurer or changing the details of your car online. However, while it may just be a matter of listing a different car on your policy, it’s likely your premium will be affected. 

Things like the age, make and model of your new set of wheels all come into play as your insurer assesses how high or low your payments are going to be. 

Read full article: New car: Can I transfer my insurance policy? and find out if it is actually financially savvy to stay with your current policy or make the switch. 

Here’s Mozo’s monthly Banking Roundup: October 2020

With the anticipation of the RBA’s rate cut, lenders adjusted their product offerings over October. Here’s what happened over last month: 

• Home loans: A number of lenders made cuts to both variable and fixed rates, plus CommBank withdrew some introductory rates. 

• Credit cards: Bonus points offers were changed across a bunch of providers as well as balance transfer offers and the introduction of new cash incentives. 

• Personal loans: Most cuts were in the fixed loan space and across car loan offerings, while CommBank introduced a discounted unsecured option. 

• At call deposits: Rates keep declining across the board, with both major banks, challengers and neobanks making cuts. 

• Term deposits: The top rate on the Mozo database for 12 months is 16 basis points lower than last month, while the average dropped by 7 basis points. 
  
  Want to compare home loans today? Check out the killer options below! Or if you just want to get your finances up to scratch this month, read our November 2020 Financial Checklist for all you need.