This week in banking news - 86 400 launch, home loans and new energy retailer Kogan
In this week’s banking recap, we look at the launch of new Australian neobank 86 400 on Tuesday, Westpac’s potential 35-year home loan and Kogan.com officially becoming an energy retailer.
Neobank 86 400 launches
After being granted a full Authorised Deposit-taking institution (ADI) licence back in July, the highly anticipated new neobank 86 400 finally launched this Tuesday. 86 400 offers a Pay Account for everyday transactions and a Save Account with a maximum interest rate of 2.50% when you transfer at least $1,000 into either account, once a month. Keen to check it out? 86 400 is a fully digital bank, so access to accounts is solely through the 86 400 app.
Xinja opens first transaction account
While we’re on the topic of up-and-coming digital banks, new kid on the neobank block Xinja, was also granted a full ADI licence on Monday. And the Aussie neobank didn’t waste any time getting down to business, opening their first transaction account for early bird customers with the ability to pay with Google Pay and Apple Pay coming soon.
Getting a better deal on your home loan in wake of looming RBA cuts
Of course it wasn’t all about neobanks, with the Reserve Bank of Australia deciding not to cut this September we also had a look at how now might be the time to search for a better deal on your home loan. The RBA’s total cash rate cuts of 0.50% back in June and July, brought the cash rate down to 1.00%, sparking a rate war between home loan lenders. And although the RBA decided not to cut this time round, with 66% of lenders in the Mozo database offering a home loan rate under 3.50% in August 2019, now might be the time to see if you could be getting a sweeter deal.
Westpac’s potential 35-year home loan for under 35s
Another story in home loans news this week was Westpac’s potential 35-year home loan for borrowers under 35. This would be 5-10 years longer than the current traditional home loan period of 25-30 years. While a longer term home loan could make it easier for younger Australians to get on the property ladder, the total interest paid over 35 years could wind up being a lot more than a shorter 30 year loan. Westpac are yet to offer a 35-year home loan, but in the meantime you can check out Mozo’s home loans comparison tool to find the best home loan deal for you.
Kogan.com becomes an energy retailer
Finally, online retailer Kogan entered the energy market with Kogan Energy, just in time for summer. Not only are Kogan Energy keen to make gas and electricity more affordable for households across Australia, the retailer also wants to make electricity pricing easier to understand for customers. Prices will be shown as a ‘per day’ and ‘per amount used’ charge. Plus if you’re a Kogan Energy customer you’ll also have access to the Kogan Energy mobile app, where you can keep track of your energy usage and pay your energy bills.
You’ll also be happy to hear that Kogan Energy’s basic residential plan is free of lock-in contracts and exit fees, meaning you can opt out at any time without incurring a penalty. Plus if you’re looking to switch to green energy or you already have solar panels, the Kogan solar plan, in New South Wales, offers 6.8 cents per kWh generated.
If you want to see how Kogan Energy compares to other energy providers or you’re looking to switch in time for the warmer months, why not check out Mozo’s energy comparison tool, to see if you could be getting a better deal on your power.