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 - last updated 13 April 2024

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    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.

  • 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.

  • 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.

  • Mozo Expert Choice Badge
    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.

  • 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 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.


*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

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