4 savvy things to do for your finances before the RBA rate cut

It’s been one of the most talked about rate cuts in Australia and Reserve Bank of Australia watchers have been holding their breath for the past 3 years.
While the RBA came out of the 30th consecutive meeting since interest rates last moved having put another hold on rates, there is something in the air that says it’s only a matter of time before they’re cut to a historic low.
Besides putting in your bets with workmates and family about whether the RBA will announce an official rate cut next month or not, here’s a few things you should do before it impacts your finances, including when it comes to things like your travel budget, shopping and your home loan.
Stash away in a term deposit
If your rainy day fund is stashed away in a savings account, then the news of an RBA rate cut won’t be what you want to hear. You want to be earning the highest rate on your savings and even lower interest rates won’t help with that.
One way you can make sure your money goes untouched is by locking it away in a term deposit, where it won’t feel the weight of a rate reduction. As rates are already on a downward slide, it’s best you get in quick if you’re chasing a good deal.
Make any big overseas purchases
Before we have a moment of silence for all the empty virtual shopping carts, if you’ve had your eyes on those $500 sneakers from the US for ages, then now’s the time to whip out the credit card and make the purchase. For the same reason as above, a falling Aussie dollar on the cards means you won’t want to wait any longer to make overseas purchases online.
Review your home loan and consider switching if a better deal comes up
If it’s been a while since you’ve checked on how your home loan is getting along, why not take the opportunity to look at it before the RBA rate cuts, that way you’re ready to pounce if your lender doesn’t pass on the rate cut, but another one does.
So you have a head start if you do decide to refinance to a better low rate deal post-RBA decision, start looking at your options now by checking out our refinance home loan comparison table.
Lock in your travelling budget on a prepaid travel card
Travelling overseas? Since AMP Capital and InvestSMART are predicting the Aussie dollar could tank to at least US65 cents later this year if interest rates go any lower, locking in an exchange rate with a prepaid travel card sooner rather than later, means you won’t have to worry about the lower Aussie dollar hurting your holiday budget.
5 Prepaid Travel Card Options - rates updated daily
Revolut Account
Today's rates
Purchase fee
Overseas ATM withdrawal
USD: 0.6659
GBP: 0.5257
EUR: 0.6128
NZD: 1.0740$0$0 under AUD $350 or 5 withdrawals for Standard, AUD $700 for Premium, then 2% (AUD $1.50 min)Revolut Account
- Currencies available
30+ currencies
- Reload fee
- up to 1% using domestic cards (up to 2.5% from international cards)
- Closure fee
- $0
- Cross currency conversion fee
- 0% - 1.50% (depending on amount and time when transfer is made)
- Other benefits
- A Revolut account includes International Money Transfers, Share Trading and Multi-Currency Account features.
- Other restrictions
- Exchange fees apply on transactions made between Friday 5pm (New York time) and Sunday 6pm (New York time).
Read our Mozo Review to learn more about the Revolut Account
Money Card
Today's rates
Purchase fee
Overseas ATM withdrawal
USD: 0.6417
GBP: 0.5028
EUR: 0.5873
NZD: 1.0327$0 Online (greater of 1.1% of initial load amount or $15 in-store)0 AUDThe Travelex Money Card can be used wherever Mastercard is accepted online or in-store at millions of outlets around the world. $0 Eftpos and ATM fees, $0 currency conversion and online shopping fees. Better rates available on amounts over AUD$2,000.
Money Card
The Travelex Money Card can be used wherever Mastercard is accepted online or in-store at millions of outlets around the world. $0 Eftpos and ATM fees, $0 currency conversion and online shopping fees. Better rates available on amounts over AUD$2,000.
- Currencies available
AUD, USD, NZD, EUR, GBP, SGD, HKD, JPY, CAD, THB
- Reload fee
- $0 when booked via www.travelex.com.au, otherwise 1% using BPay (BPay fee applies when not loading via the website or app).
- Closure fee
- $10
- Cross currency conversion fee
- $0
- Other benefits
- -
- Other restrictions
- -
Read our Mozo Review to learn more about the Money Card
Platinum Prepaid Currency Mastercard
Today's rates
Purchase fee
Overseas ATM withdrawal
USD: 0.6372
GBP: 0.4999
EUR: 0.5835
NZD: 1.0259$0 online (greater of 1.1% of initial load amount or $15 in-store)2.50 USDGet Free Global Wi-Fi when you travel with Cash Passport. The Platinum card has many beneficial attributes, including free global WiFi.
Platinum Prepaid Currency Mastercard
Get Free Global Wi-Fi when you travel with Cash Passport. The Platinum card has many beneficial attributes, including free global WiFi.
- Currencies available
AUD, USD, NZD, EUR, GBP, SGD, HKD, JPY, CAD, THB, AED
- Reload fee
- $0 online (free using BPay, 0.5% of the amount loaded per transaction using debit card)
- Closure fee
- $0
- Cross currency conversion fee
- 0%
- Other benefits
- Free global Wi-Fi at millions of Boingo hotspots, complimentary access to LoungeKey airport lounges worldwide upon a flight delay, and instantly transfer money from one Cash Passport account to another with Card to Card.
- Other restrictions
- -
Read our Mozo Review to learn more about the Platinum Prepaid Currency Mastercard
Travel Platinum Mastercard
Today's rates
Purchase fee
Overseas ATM withdrawal
USD: 0.6305
GBP: 0.4910
EUR: 0.5701
NZD: 1.0119$0 when loaded at Australia Post or online. (1.1% when loading AUD)3.50 AUDTravel Platinum Mastercard
- Currencies available
AUD, USD, NZD, EUR, GBP, SGD, HKD, JPY, CAD, THB, AED
- Reload fee
- $0 online (1% using BPay, $5 using debit card)
- Closure fee
- $0
- Cross currency conversion fee
- 0%
- Other benefits
- -
- Other restrictions
- -
Read our Mozo Review to learn more about the Travel Platinum Mastercard
Currency Pass
Today's rates
Purchase fee
Overseas ATM withdrawal
USD: 0.6536
GBP: 0.4895
EUR: 0.5726
NZD: 0.9970$0 online2.50 USDCurrency Pass
- Currencies available
USD, AUD, NZD, EUR, GBP, SGD, HKD, JPY, CAD, THB
- Reload fee
- $0 online (1% using BPay, 1.1% using debit/credit)
- Closure fee
- $10
- Cross currency conversion fee
- No percentage or flat fee, based on Spend Rates set by Travel Money Oz
- Other benefits
- -
- Other restrictions
- -
Read our Mozo Review to learn more about the Currency Pass
If you don't already have a prepaid travel card, head over to our prepaid travel card comparison table and compare your options.
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