The rate that stops a nation! RBA slashes official cash rate to 1.75%
Article by Rebeccah Elley
After plenty of speculation in the lead up to the Reserve Bank of Australia’s November meeting, the board has decided to drop the official cash rate to a record low 1.75%.
This is the first Melbourne Cup Day rate cut since 2011 and comes after the big banks raised mortgage rates last month in a bid to meet capital requirements by APRA.
Home loan roundup - who’s going to be naughty and nice?
Over October we saw the big four banks - CommBank, ANZ, NAB and Westpac - announce they will be lifting their variable interest rates for both owner occupiers and investors this month in a bid to raise capital by July 1 next year. Soon after, smaller providers St.George and Macquarie followed suit.
Now that the RBA has dropped the cash rate, will the major banks pass on the savings to customers? Our rate chasers will be on the case.
Want to compare our entire home loan database? Then kick off your search by using our home loan comparison tool.
Savings account sweep
While the RBA slashing the official cash rate is great news for borrowers, the same unfortunately can’t be said for savers. The average savings account rate is already sitting at a low of 2.30%, so if the majority of providers drop savings account rates this average will only fall further.
Thankfully, there are still some competitive savings account deals currently out there, including...
Top ongoing deals:
- RAMS Saver Account: 3.60% when you make no withdrawals and deposit over $200 a month
- ING DIRECT Savings Maximiser: 3.50% if you have an Orange Everyday and deposit over $1,000 each month
Top intro rate deals:
- RaboDirect High Interest Savings Account: 3.50% for the first 4 months
- St.George Maxi Saver: 3.50% for the first 3 months
For more great savings deals, head on over to our savings account section.
That was just a taste of what’s happening in the banking world. To read more about new incentives, product changes and the leaders when it comes to price, subscribe to our monthly newsletter the Mozo Banking Roundup.
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