This week in banking - 1 in 14 Aussie home loans deferred and 5 other things you don’t want to miss!
- COVID-19: 1 in 14 Australian home loans deferred
- Business closures see almost 600,000 Aussies jobless
- Worried about your credit rating? Here’s 6 ways to improve it during COVID-19
- International money transfers to fall by 20% due to pandemic
- Why you should switch credit cards in 2020
- Saving post coronavirus
All in this week’s banking recap.
1 in 14 Aussie home loans deferred due to COVID-19
Fresh numbers from the Australian Banking Association (ABA) have shown that 1 in 14 home loans in Australia have now been deferred due to the outbreak of COVID-19.
This totalled to almost 429,000 mortgages, (a massive $153.5 billion) and is 10% more than the ABA’s last stats update.
Plus, if you add the total number of all loans (including business and personal loans), the number of deferrals skyrockets to 703,000 since the beginning of the pandemic, which totals to about $211 billion.
Read full article: 1 in 14 Australian mortgages now deferred as COVID-19 impact continues and check out what ABA chief executive, Anna Bligh has to say about the new numbers.
COVID-19: Nearly 600,000 Australians without jobs as businesses shut
This week, new stats from the Australian Bureaus of Statistics (ABS) have shown that a whopping 594,000 Aussies have become out of work over March and April while businesses were closed.
While full-timers represented 220,500 of those job losses, part-time workers were hit even harder representing 373,800.
According to the ABS, unemployment levels now sit at 6.2%, but the Reserve Bank of Australia (RBA) previously predicted that unemployment could peak at 10% in the coming months.
Read full article: Read full article: Nearly 600,000 Aussies jobless amid COVID-19 business shutdowns for an in depth discussion of which business may or may not recover post pandemic.
6 ways to boost your credit rating during the pandemic
While your credit score may not be one of your top priorities during COVID-19, it may be worth giving it some thought to help yourself in the future.
Your credit history considers a range of things from your repaid loans, current debts and other financial moves you make. Ultimately, it will determine how valuable of a borrower you are to potential lenders later down the track.
So here are 6 ways to keep your credit history healthy during COVID-19:
1. Check your credit report and amend any errors
2. Don’t stress about deferred repayments and financial support (it won’t affect your credit score right now)
3. Contribute what you can to your debt
4. Take out a line of credit (if you haven’t before)
5. Don’t overdo it on credit applications
6. Stay put in your current job or rental property if you can
Read full article: 6 tips for improving your credit rating during COVID-19 for a deeper explanation on maintaining a healthy credit score in a pandemic.
International money transfers to plummet by 20% during COVID-19
In April, the World Bank predicted that in 2020 global remittances could drop by an astonishing 20%, the steepest in recent history.
The international money transfer industry has been hit hard by the pandemic, mainly due to high unemployment and job loss among migrant workers who can no longer afford to send money home.
World Bank Group’s president, David Malpass said that the drop will be damaging to a “vital source of income for developing countries.”
In fact, the World Bank expects funds to be sent to low and middle income countries to drop by 19.7% to $445 billion this year (compared to a record high $554 billion in 2019).
Read full article: International money transfers to plunge 20%, but still 'vital' amid COVID-19 for ways to save on international money transfers.
It could be time for a new credit card this year, and here’s why
Since the outbreak of COVID-19, the way some Aussies spend and use their credit cards has changed dramatically.
So, it may be time to reconsider what you’ve got and start shopping around for a better deal, here could be some reasons why:
- Reason #1 - The annual fee is too high and the perks are not worth it
- Reason #2 - Your spending habits have changed
- Reason #3 - The introductory period is coming to an end
Read full article: 3 reasons to switch credit cards this year if you’re not feeling great about your current credit card and are looking to jump ship.
Post-pandemic: saving after COVID-19
With the economic effect of COVID-19 becoming clearer each day, and isolation restrictions starting to be lifted, people are starting to question whether life will return to “normal.”
One indicator that things are changing is that Aussies all over the country have found ways to save that could carry on post-pandemic and well into the future.
Whether it’s saving on the daily commute to work, flying less for business meetings, buying local produce or switching to plant-based meals, some people are considering keeping up these “iso” habits to help plump up their savings stash once COVID-19 is over.
Read full article: COVID-19 and the recession: Saving in a post-pandemic world for more on what Aussies are doing to keep more cash in their pocket.
Looking for some killer savings accounts to keep your pandemic savings stash? Check out the hot deals below!
Savings Accounts 2020 - last updated 27 April 2024
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Mozo experts choice awards won:
- Kick Start Savings - 2024
High Interest Savings Account
5.75% p.a. (for $0 to $250,001)
4.40% p.a.(for $0 to $250,001)
Yes up to $250,000
Bonus rate for the first 4 months from account opening
Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.
CompareCompareHigh Interest Savings Account
Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.
- Maximum rate
- 5.75% p.a. (for $0 to $250,001)
- standard interest rate
- 4.40% p.a.(for $0 to $250,001)
- 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, reverting to standard variable rate. Rate shown is for Personal customers and is subject to change. Different rates apply to Business/SMSF customers.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read our Mozo Review to learn more about the High Interest Savings Account
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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 our Mozo Review to learn more about the Reward Saver Account
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Mozo experts choice awards won:
- High Interest Savings - 2024
AMP Saver Account
5.40% p.a. (for $0 to $250,000)
1.20% p.a.(for $0 to $5,000,000)
Yes up to $250,000
Enjoy a bonus rate when you deposit at least $1000 per month with the AMP Saver Account.
No account fees. Unlimited transactions when linked to an AMP Bank transaction account. Easy online access to your money. Option to link your savings account to an everyday transaction account. 2024 Mozo Experts Choice Award winner.
CompareCompareAMP Saver Account
No account fees. Unlimited transactions when linked to an AMP Bank transaction account. Easy online access to your money. Option to link your savings account to an everyday transaction account. 2024 Mozo Experts Choice Award winner.
- Maximum rate
- 5.40% p.a. (for $0 to $250,000)
- standard interest rate
- 1.20% p.a.(for $0 to $5,000,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Ongoing total variable bonus rate of up to 5.40% per annum applies if customers deposit $1,000 in the previous month. Available only on balances up to $250,000.
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Ongoing total variable bonus rate up to 5.40% p.a. is earned on the balance the month after you deposit $1,000 and is paid the following month, on balances up to $250k. Max balance per customer name is $5 million.
Read our Mozo Review to learn more about the AMP Saver Account
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Savings+Bonus
5.00% p.a. (for $0 to $250,000)
2.00% p.a.(for $0 to $250,000)
Yes up to $250,000
Minimum $100 monthly deposit and no withdrawals to earn bonus interest each month.
Earn a generous interest rate on your at-call savings (T&Cs apply). Interest is calculated daily and paid to you monthly. A $5 monthly membership fee will not apply if your total account balances with First Option Bank exceed $1,000 or you have a credit card or loan with the bank.
CompareCompareSavings+Bonus
Earn a generous interest rate on your at-call savings (T&Cs apply). Interest is calculated daily and paid to you monthly. A $5 monthly membership fee will not apply if your total account balances with First Option Bank exceed $1,000 or you have a credit card or loan with the bank.
- Maximum rate
- 5.00% p.a. (for $0 to $250,000)
- standard interest rate
- 2.00% p.a.(for $0 to $250,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $5.00
- Maximum rate conditions
- Minimum $100 monthly deposit and no withdrawals to earn bonus interest each month.
- Access
- -
- Minimum balance
- $1.00
- Other restrictions
- Must become a First Option Bank member to open an account.
Read our Mozo Review to learn more about the Savings+Bonus
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Savings Account
5.35% p.a. (for $0 to $250,000)
4.75% p.a.(for $0 to $1,000,000)
Yes up to $250,000
Bonus variable rate is available for the first four months.
Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.
CompareCompareSavings Account
Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.
- Maximum rate
- 5.35% p.a. (for $0 to $250,000)
- standard interest rate
- 4.75% p.a.(for $0 to $1,000,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus variable rate is available for the first four months.
- Access
- BPay, Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must have a Macquarie Transaction Account to link with.
Read our Mozo Review to learn more about the Savings Account
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High Interest Save Account
5.10% p.a. (for $0 to $250,000)
0.10% p.a.(for $0 and over)
Yes up to $250,000
Deposit at least $200 to either Spend, Bills or Save account from an external source each month.
No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.
CompareCompareHigh Interest Save Account
No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.
- Maximum rate
- 5.10% p.a. (for $0 to $250,000)
- standard interest rate
- 0.10% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Deposit at least $200 to either Spend, Bills or Save account from an external source each month.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Account can only be opened through iOS or Android app, but may be accessed through internet banking.
Read our Mozo Review to learn more about the High Interest Save Account
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^See information about the Mozo Experts Choice Savings Account Awards
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