How to upskill your financial know-how in 2021

Whether you are looking to switch your home loan, opt for a high interest savings account or get a fresh set of wheels with a car loan, 2021 could be the year to get more financially savvy. 

So, how can you improve your money know-how this year? It’s all about what you look for when choosing your financial products. 

There are three main things to consider: 

• Interest 
• Features 
• Fees 
  

Read on as we take a deep dive into how they work for different financial products and what you need to know about finding a good deal. 

First off ... interest, interest, interest 

One of the most important things to get to know when it comes to your finances is interest rates. 

Many banking products have interest rates, but they don’t all work in the same way.

For loan products (like home loans, personal loans, car loans, business loans and credit cards) interest is what the bank or lender charges the customer for the money they borrow. 

Whereas for deposit products (like savings accounts, term deposits and bank accounts) interest is what you, as the customer, earn on the money you put into the bank. 

So to put things simply, when borrowing you want to opt for a low interest rate, and when depositing you want to opt for a high interest rate. 

For more on how different interest rates work and to compare products, check out the Mozo Interest Rates page. 

Throw in a handful of bonus features  

With so many different financial products out there, it pays to be picky when it comes to weighing up your options. 

This is where bonus features can really make the difference. 

For example, some savings accounts reward customers with bonus interest when they make regular deposits and purchases. Or some accounts may have cashback offers when you first sign up. 

When it comes to loans, there are a whole bunch of features to keep your eyes peeled for. These include extra repayments, redraw facilities, offset accounts, repayment frequency and more. 

And for credit cards, customers can look for things like rewards, balance transfer offers, interest-free days etc. 

Ultimately, you need to consider what types of features best suit your financial situation and where you can get them for the lowest possible price.     

Try to dodge pesky fees 

Fees are an unfortunate part of banking, but an easy way to upskill your financial know-how is to familiarise yourself on how to dodge them (or at least as many as you can). 

Here are a bunch of fees you may face on your financial products: 

• Upfront fees (application, establishment fee etc) 
• Annual fees 
• Monthly service fees 
• Early repayment fees 
• Late payment fees 
• Transaction fees 
• International fees

While it may be hard to avoid every fee, when weighing up your options take into consideration which products have less fees that others. Also remember to crunch the numbers in relation to the different fees. While a $10 monthly fee may not seem like much at first, it can add up over time and may outweigh the cost of a one-off application charge. 

Want to start weighing up some savings accounts right now? Check out these options below or head over to our savings accounts comparison hub for more!