Grab the Most Competitive Interest Rates on Offer This Month

Grab the Most Competitive Interest Rates on Offer This Month
Contributor: Alex Ritchie
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There was a lot of chatter this month around who would come out a winner, and who a loser, off the back of the new Federal Budget. And some of that talk turned into speculation that the Reserve Bank of Australia may make a small cut to interest rates.

While no cut occurred, we still saw a range of financial institutions cut interest rates out of cycle for home loans and savings accounts. And with responsible lending rules on the cutting board for this Federal Budget, we may see an increase in new loans over the next few months.

In an unexpected twist, two of the big four banks have offered up answers to the great ‘Buy Now, Pay Later’ war for Aussies’ spending money, with no-interest credit cards (you read that right) now up for grabs.

But with eased lending restrictions and interest rates at historic lows, could we see an increase in cheap credit turning into growing debt? The answer may lie in how responsible Aussie borrowers are with their finances over the next few months.

That being said, here are some of the most competitive interest rates on the market for October.

1. Lowest fixed home loan rates

Despite no further cut to the cash rate since March this year, the last few weeks have seen home loan interest rates plummet to historic lows, with several home loan rates now sitting below 2 per cent.

47 home loan interest rates have been cut in this month alone, with decreases coming from 10 lenders, including Macquarie Bank and Adelaide Bank.

If you’re not sure whether to lock in a fixed rate loan now or ride out the historic low cash rate wave a bit longer with a variable rate loan, it’s worth keeping in mind that no one can predict the bottom of the market.

There are currently more fixed home loans starting with a 1 than there are variable, with 10 available on the market. If you’re looking for greater stability in your budget in these uncertain times, a fixed rate home loan may be a more competitive choice for your personal finances.

Fixed rate home loan Interest rate Comparison rate
Reduce Home Loans Rate Crusher 1 Year Fixed



Homestar Finance Star Classic Owner Occupied 1 Year Fixed Special



People’s Choice Credit Union Package 1 Year Fixed Home Loan



Bank First Premier Package Home Loan Fixed 3 Years



Greater Bank Ultimate Fixed Home Loan 1 Year*



*Greater Bank loan for NSW, ACT and QLD residents only.

Source: Data accurate as of 12.10.2020.

2. Vehicle financing made easier

Car sales are still on the decline, dropping 21.8 per cent in September compared to the same period a year earlier according to Federal Chamber of Automotive Industries data.

However, more Aussies could be visiting car lots soon enough thanks to easing COVID-19 regulations and eased financial red-tape. In a controversial move, Treasurer Josh Frydenberg revealed that financial institutions are soon able to ease up on responsible lending criteria that ensures a borrower can afford to repay a debt they’re taking on.

This means the onus may soon be on the borrower to ensure they can pay back their loan. But it will also make credit much more readily available for Australians.

If you’re considering taking out a car loan, it’s absolutely crucial that you do your research and use car loan calculators to ensure you can afford any potential repayments with your budget – including interest and fees.

With all that in mind, here are some of the lowest car loans on the market if you’re considering getting a new or used set of wheels in 2020.

Car loan Minimum interest rate offered
Australian Military Bank Car Loan


Credit One Secured Car Loan

3.85% Green Car Loan


Stratton Car Loan

4.05% Car Loan


Source: Data accurate as of 12.10.2020.

3. Highest savings accounts

It’s a challenging time to be a saver in Australia. Whether you’re dreaming of owning your own home one day or simply growing a rainy-day fund, interest rates are just like the cash rate: at nearly zero per cent.

Savings account interest rates have essentially fallen off a cliff, with few accounts still offering interest rates above 1 per cent.

This is why it’s never been more valuable to do your research and compare your savings account options. Especially if you’ve been stuck with the same bank you’ve had since you were a child.

In fact, a lot of newer, online-based savings accounts typically offer more competitive interest rates than the big four banks. This is because these competitor providers have fewer overheads, such as branches, and can therefore pass the savings on to customers.

However, the most competitive savings account in the market right now currently comes from Westpac, with a 3 per cent offer available for account holders under the age of 30.

Here are the current most competitive conditional savings accounts on the market.

Savings account Base rate Maximum rate Conditions
Westpac Life (18 – 29 years)



Account holders aged 18 – 29 years. Five eligible purchases a month with linked transaction account.
Up Saver



5 or more card purchases per month from your Everyday Account.
Illawarra Credit Union Saver



Deposit at least $100 during the month and make no withdrawals within the calendar month
ME Bank Online Savings Account



Linked ME Everyday Transaction Account required. Tap & Go four times a month.
Australian Unity Active Saver



Deposit $250 and make no withdrawals each month.
ING Savings Maximiser



Linked Orange Everyday bank account needed, with deposit of $1,000 or more per month and 5+ card transactions each month made in linked acct.

Source: Data accurate as of 12.10.2020.

4. Competitive credit cards

It’s been an interesting few weeks for credit cards, with NAB and CommBank taking a swing against Buy Now, Pay Later services, like Afterpay and Zip Pay, with their competitive new no-interest credit cards.

NAB moved first, rolling out the StraightUp credit card. It does not charge interest on expenses, but cardholders will be charged a tiered, flat monthly fee up to $20 depending on which credit limit you apply for ($1,000, $2,000 or $3,000).

CBA then announced it would launch its NEO card in late 2020, with credit limits of $1,000, $2,000 or $3,000 and no interest, as well as no late fees or currency conversion fees. It will also come with tiered monthly fees, depending on the credit limit you choose – up to $22 a month for a $3,000 limit.

If you’re curious about these no-rate card offerings, or interested in low-rate credit cards, here are some of the most competitive on the market right now. Keep in mind to compare any potential fees and ongoing costs that may increase the overall cost of the card.

Credit card Purchase rate
NAB StraightUp


Commonwealth Bank of Australia NEO*


G&C Mutual Bank Low Rate Visa Credit Card


Auswide Bank Low Rate Visa Card


American Express Low Rate Credit Card


Community First Credit Union Low Rate Credit Card


*Available in late 2020.

Source: Data accurate as of 12.10.2020.

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At Lifehacker, we independently select and write about stuff we love and think you'll like too. We have affiliate and advertising partnerships, which means we may collect a share of sales or other compensation from the links on this page. BTW – prices are accurate and items in stock at the time of posting.


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