This week in banking news - home loans, online businesses, energy and saving for retirement

Tara McCabe

Friday 15 November 2019

  • Find out which neobank just became the first to offer home loans.
  • Why small businesses are heading online.
  • The reason Aussies are ditching aircons this summer.
  • Retirement savings and anxiety.

All in this week's banking recap.

Man looking at his phone.

Neobank 86 400 ventures into the world of home loans

Recently launched neobank, 86 400 ventured into the world of home loans this week, with 86 400 Own Home Loans. Currently these home loans are only available to take out through a broker, but the neobank does stress that all paperwork can be completed electronically. 

Plus, according to Mozo’s database, 86 400’s 2 and 3 year fixed interest rate loans for owner occupiers are pretty competitive, offering relatively low fixed interest rates at 2.88% p.a. (3.31% comparison rate*, principal and interest loan).

More and more Aussie businesses moving online, report shows

According to a recent report conducted by American Express, as much as 48% of small business owners in Australia believe that their business will become a 100% online business in the future.

While heading online is not necessarily a bad thing, the research also found that more online businesses feared becoming insolvent in the next three to five years than businesses made of bricks and mortar. 

So if your business is heading online,  taking out a business loan to invest in more technology can help you afford to make the transition the right way. 

Aussies ditching aircons to save on energy bills this summer

In more research released this week, energy retailer Powershop has found that a huge 80% of Aussies are worried about how much their energy bills will cost them this summer.

Besides putting money aside in preparation for their next bill, over half of this number said they would make an effort to track their power usage and keep their costs down. In fact, a huge 56% said they would even consider using their beloved aircon less or not at all.

Aussies increasingly worried about retirement savings

On that note, it would seem that Aussies are also concerned about not having enough savings for retirement. Indeed, according to a survey conducted by investment firm, Franklin Templeton, 70% of Generation Y Australians feel some form of stress or anxiety when they contemplate saving for their retirement, not to mention the huge 74% of Generation X Aussies who don’t hold out a lot of hope for a big retirement nest egg in the future.

Plus, with interest rates on savings accounts at an all time low, these concerns are certainly well founded. Some Mozo tips on upping your stash include: making extra contributions to your super, creating a budget and sticking to it and lastly, automating your savings. 

If you are one of many Aussies worried about building up your retirement savings, there are still some competitive savings rates on offer for those who know where to look. Why not check out the high interest savings accounts below to see how much interest you could be earning on your hard earned money.

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

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