This week in banking - Credit card interest rates are too damn high

In this week’s banking recap, we take a look at the latest moves from the world of banking, plus revisit the latest round of Mozo Experts Choice Awards.

Credit card interest rates stay high despite RBA cuts

After two consecutive cash rate cuts, banks have made plenty of changes to their home loan and savings portfolios, but what about credit cards? Well, according to new research from Mozo, interest rates for credit cards have remained stubbornly high not just this year, but over the past eight years.

While the cash rate has dropped 3.75% since 2011, very little of this has flowed through to rates for credit cards. In fact, they’ve actually increased by 2.90% on average, netting stingy credit card providers profits of around $5.2 billion.

Where do you start with life insurance?

Planning for what happens after you die is no one's favourite topic, but that doesn't make life insurance any less important. For those who don’t know where to start when it comes to picking an insurer, we’ve done a lot of digging to determine the best of the best in our inaugural Mozo Experts Choice Life Insurance Awards

UBank cuts fixed rate home loans

UBank made waves this week by slashing fixed rates by 0.25% for owner occupiers and 0.50% for investors. The changes apply to 1, 3 and 5 year terms, and see fixed rates for the UBank UHomeLoan drop to a super low 2.99% (3.63% comparison rate*) for borrowers looking to lock in a three year fixed term.

UBank cuts savings rates again

The slew of cuts UBank has made to home loan rates has had fans of the online bank’s savings accounts on high alert. Once reductions are announced to home loan rates in response to an RBA rate cut, it’s usually not long before savings accounts follow.

Fortunately, UBank opted to reduce deposits by only 0.19%. Its popular USaver with Ultra Transaction Account now comes with a bonus rate of 2.41%, down from 2.60%. This still puts it among the top 10 bonus interest rates in our database on accounts without age restrictions.

Triple the interest you earn just by making the switch

On that note, if you’re looking to boost your savings, the first step should always be to find a quality savings account. There’s a world of difference between the best and worst accounts out there, and picking the right one could see the interest you earn triple.

“There’s no point staying loyal to banks that offer poor rates on their savings accounts. You could be pocketing a whole lot more money just by making a simple switch,” said Mozo Director, Kirsty Lamont.

So if you’re looking for a high interest savings account to help you turn your finances around, check out some of the options below, or head over to our comparison table to find one that’s right for you.

Savings account comparisons on Mozo - rates updated daily

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Boost Saver with Go Account

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.20% p.a. (for $0 to $250,000)
    0.10% p.a.(for $0 and over)
    Yes up to $250,000

    Deposit $2,000 each month and make 5 eligible payments from your Go Account. If you are between 18 and 25 deposit $1,000.

    Enjoy a savings account bundled with a spending account. New customers can earn up to 5000 bonus Virgin Money points on purchases (conditions apply). Benefit together with a joint account

    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    Bonus Saver Account

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.20% p.a. (for $0 to $250,000)
    0.10% p.a.(for $0 and over)
    Yes up to $250,000

    Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Everyday or Glide transaction accounts.

    Winner of a Mozo Experts Choice Award 2021 in the Regular Saver category. No monthly account fees and no minimum balance requirements.

    Go to site
    Details
  • placeholder
    Grow Saver

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    0.65% p.a. (for $0 and over)
    0.10% p.a.(for $0 and over)
    Yes up to $250,000

    Make at least 1 deposit and no more than 1 withdrawal, including internal transfers or external payments.

    Earn a maximum interest rate of 0.65% per year. Pay no monthly fees. Set up in-app savings goals. Benefit with joint account options.

    Go to site
    Details
  • placeholder
    Serious Saver

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    0.30% p.a. (for $0 to $1,000,000)
    0.15% p.a.(for $0 and over)
    Yes up to $250,000

    Bonus rate for first 3 months, reverting to 0.15% rate after

    $0 monthly account fee. Link to any Australian bank account.

    Go to site
    Details
  • placeholder
    Hero Saver

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    0.70% p.a. (for $0 to $250,001)
    0.01% p.a.(for $0 to $5,000,000)
    Yes up to $250,000

    Minimum deposit of $200 and no withdrawals in the month.

    Interest is calculated daily and paid monthly. Automatic payment feature. No minimum opening balance needed.

    Go to site
    Details

*The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a home loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years, and applies only to this example. Different amounts and terms will result in different comparison rates. Full comparison rate schedules are available from lenders. Costs such as redraw fees or early repayment fees, and savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

^See information about the Mozo Experts Choice Savings Accounts Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.