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

Mozo may receive payment if you click products on our site. We don’t compare the entire market, but you can search our database of 272 savings accounts.
Last updated 30 October 2024 Important disclosures
  • Savings Account

    5.50% p.a. (for $0 to $250,000)

    5.00% p.a.(for $0 to $1,000,000)

    Yes up to $250,000

    Bonus variable rate is available for the first 4 months.

    Enjoy a high interest savings account with no account keeping fees to pay. Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace. Multiple 2024 Mozo Experts Choice Award winner.

    Compare
    Details
  • Bonus Saver

    5.00% p.a. (for $0 and over)

    1.00% p.a.(for $0 and over)

    Yes up to $250,000

    Bonus interest for the first four months from the account opened date. No minimum balance required. No monthly or ongoing fees or withdrawal penalties. Manage your money easily via phone or online banking or via the BCU Bank app.

    Compare
    Details
  • PremiumSaver

    5.35% p.a. (for $0 to $250,001)

    1.45% p.a.(for $0 and over)

    Yes up to $250,000

    Increase balance by $200 by the end of each month

    Reward yourself with a higher rate for your good savings habits. Rabobanks’s PremiumSaver is simple - receive the maximum rate when you grow your balance by at least $200 each month (T&Cs apply). Plus, your savings help our Aussie farmers produce the food we love to enjoy.

    Compare
    Details
  • Savings Maximiser

    5.50% p.a. (for $0 to $100,000)

    0.55% p.a.(for $0 and over)

    Yes up to $250,000

    Deposit $1,000 into a personal ING account, make 5 eligible transactions with a linked Orange Everyday account and grow the balance each month.

    Great variable rate every month when you grow your balance each month in addition to other eligibility criteria. No ING fees to pay. Save even more with ING Everyday Round Up. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^

    Compare
    Details
  • Savings Accelerator

    3.55% p.a. (for $0 to $50,000)

    2.85% p.a.(for $0 to $50,000)

    Yes up to $250,000

    New customers receive an introductory bonus 0.70% p.a. variable kick starter rate for the first 4 months on balances up to $500,000.

    Enjoy the flexibility to access your funds with no monthly deposit requirements or lock-in terms. No ING fees to pay. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^

    Compare
    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 Account 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.