Summer savings: Save on personal finance costs this summer
Mozo’s top five tips for tapping into personal finance savings this summer
15 December 2021
- Cool down your personal finance costs this summer with possible savings of more than $6,000
- The single biggest saving of $3,562 comes by comparing home loan rates and switching from the average rate (3.08%) to the leading fixed rate in Mozo’s database of 1.59%
- Switching NBN providers and taking advantage of a credit card balance transfer offer can also deliver sizable savings
As we head towards Christmas and the peak retail season, Mozo has crunched the numbers and come up with five ways you could cool down your personal finance costs this summer with savings up to $6,478 on offer.
“As the mercury rises it’s easy to sit back and watch your household bills rise with it, but the good news is there are some simple things you can do to take the heat out of your personal finances and avoid sweating on your next bill,” says Mozo spokesperson Tom Godfrey.
Mozo has come up with five simple ways you could save across a range of household financial products and services:
1. Refinancing to a low fixed rate could save you up to $3,562 on average
With talk of interest rate rises next year, comparing home loan rates and switching from the average variable rate to a low fixed rate could see you make a significant saving. Mozo found it’s possible to save up to $3,562 in interest in the next 12 months by switching an average $400,000 home loan from the average variable interest rate in its database of 3.08% to the leading fixed rate in its database of 1.59%.
2. Using a balance transfer offer to switch from a high rate to a lower rate credit card could save you up to $1,141
If you’ve been using a credit card with an interest rate of 20% to make the most of the sales season and you’re carrying a balance forward, it’s a good time to take control of the debt and consider one of the 77 balance transfer deals in Mozo’s database. Mozo found if you are carrying a $10,000 balance forward each month, taking advantage of a 0% balance transfer offer over 12 months could save you $1,141 in interest.
3. Logging on to a better NBN provider can save you $1,017 a year
If you’re looking to take the heat out of your home internet bill, Mozo found that by comparing the NBN services on offer and switching, you could save $1,017 on a NBN 100 plan.
4. Turning the heat up on your energy provider could save you $455
With many of us set to fire up the air conditioning in a bid to stay cool this summer, it can pay to compare providers to help ensure you don’t overheat your electricity bill. Mozo found people in New South Wales, Victoria, Queensland, South Australia and the ACT could save $455 by comparing and switching providers.
5. Average price differences of $303 a year between car insurance quotes for comparable cover
With many of us heading back out on the roads, now is a good time to reassess your car insurance cover and see if you can make a saving. Mozo looked at 35 car insurance providers across 9,503 customer scenarios and found average price differences of $303 a year between quotes for comparable cover.
“Make summer a time to shine some light on possible savings you could be making across your personal finances,” Godfrey says.
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Notes: Total savings across all six items listen = $8,926. Balance transfer savings calculated on a starting balance of $10,000 making repayments of $850/month over 12 months with 0% interest on the balance transferred. The energy price data is extracted from the Energy Made Easy (NSW, QLD, ACT, SA) and Vic Energy Compare (VIC) sites, and has been used to develop our Mozo Experts Choice Awards Energy winners. For each plan assessed, we use three different usage scenarios (low, med, high) based on the average usage in those states, and perform some average and normalisation calculations. We then take the difference in cost between the least expensive plan, and average energy plan price, to determine a savings figure for each fuel type (electricity/gas) and state combination. Finally, we average the savings across the states for an overall average savings figure.