Popular bet pays off: RBA keeps rates on hold at 1.50%

By Mozo Editorial · Tuesday, 1 November 2016 · 3 min read

Fact Checked

The Reserve Bank have kept interest rates on hold at 1.50% again in their Melbourne Cup day announcement, following stronger than expected third-quarter inflation numbers.

Consistently low inflation was one of the main factors behind recent predictions surrounding the Reserve Bank board’s decision. Although inflation remains below the RBA target of 2-3%, it showed considerable annual growth — apparently enough that the RBA saw no reason to shake things up with a cut on Melbourne Cup day.

Experts now largely expect that rates will stay steady until 2017.

Home loans up in the air

With interest rates stuck at an all time low of 1.50%, it’s a good time for borrowers — though this is reflected in sky high auction clearance rates and property prices in Sydney and Melbourne. That’s why it’s as important as ever to make sure you’re not paying too much on your mortgage, but the good news is there are some great deals out there for borrowers keen to get their hands on a property.

Take a look at some of the best home loan offers at the moment in the tables below:

Best variable rate home loan offers

Product	Variable rate	Comparison rate
Loans.com.au Essentials Variable home loan	3.39%	3.41%
FreedomLend Variable Home Loan	3.53%	3.53%

*All home loan rates based on owner occupiers with an LVR of 80%

Best fixed rate home loan offers

1 year – 3.59% from Greater Bank (comparison rate 4.42%)
2 years – 3.59% from QT Mutual Bank (comparison rate 4.74%)
3 years – 3.49% from My Credit Union (comparison rate 4.16%)
4 years – 3.74% from Greater Bank (comparison rate 4.34%)
5 years – 3.74% from Greater Bank (comparison rate 4.32%)

Check out all the other great home loan offers available in our home loan comparison table.

Savings accounts an outside bet

The low rate environment isn’t so kind to savers, who have been seeing pretty dismal returns on their rainy day finds for some time now. Although they’ve escaped yet another rate cut this month, savvy savers will need to keep their wits about them to find the best return on their money. Here are some of the best places to stash your cash:

Best savings accounts

Product	Interest rate	Special conditions
RAMS Saver Account	3.15%	With a minimum deposit of $200 and no withdrawals in the month
ME Online Savings Account	3.05%	When you make a weekly Tap & Go purchase with your ME Everyday Transaction Account Debit MasterCard
Bank Australia Bonus Saver	3.00%	With a minimum deposit of $100 and no withdrawals in the month
Police Bank Bonus Savings Account	3.00%	With a minimum deposit of $100 and no withdrawals in the month
CUA eSaver Reward	2.90%	When you deposit $1,000 into a CUA transaction account in the month

Best Term Deposits

6 months - ME - 3.10%
9 months - ME - 3.00%
1 year - Big Sky - 3.05%
2 years - ANZ (advance notice term deposit) and People's Choice Credit Union - 3.20%
3 years - Bank of Melbourne, BankSA, Commonwealth Bank, NAB, People's Choice Credit Union, Qudos Bank, St.George - 3.20%
4 years - Big Sky- 3.25%
5 years - RaboDirect - 3.30%

Check out our saving accounts comparison table or term deposit comparison to find other great offers that will nab you a return on your hard earned savings stash.

And if you want to stay in touch with what’s happening in the world of finance, you can subscribe to our monthly newsletter, the Mozo Banking Roundup.

Read last month's Reserve Bank interest rates update.

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^* 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.

^** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

Mozo Editorial

Mozo’s team of experienced journalists and money experts provide news, insights, practical guides and expert analysis to help you master your personal finances. We follow editorial guidelines that focus on accuracy, reliability and timeliness; helping you make informed financial decisions with confidence and the most of your hard-earned money.

Popular bet pays off: RBA keeps rates on hold at 1.50%