The Best High-Interest Savings Accounts and Low-Rate Home Loans This Month

The Reserve Bank of Australia has hiked the cash rate for a fifth-consecutive month, bringing this benchmark rate up to 2.35%. This has meant savings accounts are now earning rates above the lowest mortgage rates, with a 4% savings rate back on the table for the first time in seven years.

Homeowners across Australia have been holding their breath to see if, and when, their banks and lenders will pass this latest 50-basis point hike on to their mortgage repayments. It’s likely that millions of Australian mortgage-holders will be reassessing their household budgets in September thanks to this fourth double-hike in a row.

Meanwhile, savers are rejoicing as the interest earned on savings accounts starts to climb up again. There are now 6 providers on the RateCity database offering savings account interest rates above 3%. And with some savings account interest rates from the big four banks still starting with a zero, now may be the time to compare your options for a high interest savings account.

And if you’re one of the many homeowners looking to travel overseas again, you may be interested in which credit cards are offering bulk frequent flyer points on sign up. These frequent flyer points can be exchanged for perks like flights, seat upgrades, hotel accommodation and more.

So, let’s dive into where you can still get a competitive banking product this September.

Variable home loan rates starting with a ‘3’

This month, the big four banks took several days to announce they would be passing on the latest cash rate hike in full to their customers. For some homeowners, you may not want to wait around to know if you’re still getting a competitive home loan rate. Especially with more interest rate hikes expected until Christmas, and even early 2023.

While many home loan lenders have hiked rates into the 4-5% range, some are still providing variable interest rates for owner-occupiers (paying principal and interest) starting with a ‘3’.

Current lowest variable rates on RateCity.com.au

• Yellow Brick Road Select Variable Home Loan at 3.64% (Comp. rate 3.67%)
• Gateway Bank Premium Package Home Loan at 3.74% (Comp. rate 4.06%)
• Bank First Complete Home Loan at 3.84% (Comp rate 3.89%)
• Hume Bank liteBlue Home Loan at 3.94% (Comp. rate 3.94%)
• P&N Bank & Basic Home Loan at 3.99% (Comp. rate 3.99%)

Note: From lenders which have announced Sept RBA hikes. Some of these rates will come into effect later this month. Some loan-to-value ratios apply

Competitive fixed rate home loans

Reserve Bank of Australia (RBA) Governor, Philip Lowe, has suggested the Board is considering another 25- or 50-basis point hike in October. So, while some may argue that the ship has sailed on rock-bottom fixed interest rates, homeowners who want to avoid ongoing increases to rates for some time may want to compare fixed rate home loan options.

According to the RateCity database, these are the current lowest fixed rate home loans for owner-occupiers, paying principal and interest:

Current lowest fixed rates on RateCity.com.au

• 1 Year Fixed – Police Credit Union – 3.99% (Comp. rate 4.94%)
• 2 Year Fixed – IMB Bank – 4.89% (Comp. rate 5.00%)
• 3 Year Fixed – Police Bank – 4.69% (Comp. rate 4.27%)
• 4 Year Fixed – bcu – 4.99% (Comp. rate 5.07%)
• 5 Year Fixed – BOW – 4.99% (Comp. rate 4.83%)

Note: From lenders which have announced Sept RBA hikes. Some of these rates will come into effect later this month. Some loan-to-value ratios apply

Grow your nest egg with a high interest saver

The one upside of a rising rate environment is that savings accounts are back. In fact, this month Bank of Queensland announced it would be increasing its popular Future Saver Account (for younger Australians aged 14-35) to 4%. This is the highest savings interest rate on the RateCity database in seven years and may help younger Australians to save up for a first property deposit or for a new car.

For all adults, Virgin Money and ING are also offering a competitive 3.60% for their savings customers. These are some of the many competitive options above 3% on the RateCity database. So, if your savings account provider is still paying you a rate below 1%, it may be worth comparing your options.

Bonus saver accounts: maximum interest rates

Source: RateCity.com.au. Conditions for max rate apply. ubank rate effective 1 Oct.

Credit cards with biggest sign-up bonus points rewards

Last month, the RBA released data showing that the value of international credit card purchases had jumped a massive 15%, or 173.5 million month-to-month for June 2022. Thanks to eased border closures after two years of pandemic-related movement restrictions, it seems more and more Australians are keen to travel again.

If you’re planning an overseas trip soon, you may be looking into which credit cards could offer you bulk points on sign-up that help pay for your flights, help with upgrades, or simply provide complimentary travel insurance.

At the time of writing, these are the credit cards offering the biggest Qantas frequent flyer points at sign up:

• Qantas Premier Titanium – 150,000 points
• ANZ Frequent Flyer Black – 130,000 points
• NAB Rewards Signature Qantas – 120,000 points
• Westpac Altitude Black (Altitude Qantas) – 120,000 points

Keep in mind that there’s more to a credit card than the rewards points offered, and it’s worthwhile comparing factors like interest rates, fees, and interest-free days as well.