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

  • 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.

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.

Compare high interest savings accounts - rates updated daily

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure.
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    Mozo Experts Choice 2021
    Bonus Saver Account

    Maximum rate
    Standard interest rate
    Govt Deposit Guarantee
    1.10% p.a. (for $0 to $250,000)
    0.05% 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.

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    Details
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    Boost Saver with Go Account

    Maximum rate
    Standard interest rate
    Govt Deposit Guarantee
    1.50% p.a. (for $0 to $250,000)
    0.10% p.a.(for $0 and over)
    Yes up to $250,000

    Intro bonus rate of 1.50% for first 3 months, reverting to 1.20% after. 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. No monthly fees. New customers can earn up to 5000 bonus Virgin Money points on purchases (conditions apply). Benefit together with a joint account

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    Details
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    High Interest Savings Account

    Maximum rate
    Standard interest rate
    Govt Deposit Guarantee
    1.35% p.a. (for $0 to $250,001)
    0.25% p.a.(for $0 to $250,001)
    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    Kick start your savings with the 4 month introductory variable rate. No fees, no minimum balance, no minimum monthly deposit and no minimum term.

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    Details
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    Fast Track Saver Account

    Maximum rate
    Standard interest rate
    Govt Deposit Guarantee
    1.05% p.a. (for $1 to $250,000)
    0.05% p.a.(for $1 and over)
    Yes up to $250,000

    Ongoing bonus rate applied if in the previous month $1,000 or more is credited to the linked Day2Day Plus account and 5 eligible transactions are made by the linked account.

    Earn 1.05% p.a. Bonus Interest in the following month on your Fast Track Saver Account balance. Earn Bonus Interest on your savings, with no minimum balance required.

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    Details
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    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.

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    Details

*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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