What’s the most important factor to keep in mind when looking for new financial products? If you said “interest rates”, you’d only be half right. While the interest you’re charged on loans or receive on deposits can make a big difference to the value they offer, their other features and benefits can also affect their worth.
Top April Interest Rates
Home loan interest rates
Some of the lowest home loan interest rates currently being offered on the RateCity database are fixed rates. If you switched to one of these loans today, you’ll be paying the rate for the rest of the fixed period – often 2 years or longer. This could help to insulate you against the risk that rates could rise in the future, such as if the RBA was to raise rates in response to inflation not falling into its target band on schedule.
Just keep in mind that economists from some of Australia’s big banks currently forecast that the RBA could cut interest rates before the end of the year. If there were two or more RBA cuts, and lenders passed them on in full to their variable customers, then the variable rate option could turn out to be cheaper over the next couple of years.
It’s important to also consider a home loan’s other features and benefits before making any decisions. For example, not many fixed rate mortgage deals offer access to flexible features such as unlimited extra repayments or an offset account. These extras can help you manage your repayments the way you want, and may be able to help you pay off your home sooner with less interest charged in total.
Some of the lowest rates on RateCity at the time of writing include:
- 5.48% p.a Fixed – 3 years (Comparison Rate* 6.24% p.a) Australian Mutual Bank Fixed Rate Home Loan 3 Years
- 5.59% p.a Fixed – 3 years (Comparison Rate* 5.85% p.a) Police Bank First Home Loan Fixed (Principal and Interest) 3 Years (LVR < 90%)
- 5.64% p.a Fixed – 5 years (Comparison Rate* 6.44% p.a) RACQ Bank Fixed Rate Home Loan – Owner Occupied (QLD only)
- 5.69% p.a Fixed – 4 years (Comparison Rate* 6.31% p.a) HSBC Package Fixed Rate Home Loan (Principal and Interest) 4 Years (LVR < 60%)
- 5.69% p.a Fixed – 3 years (Comparison Rate* 6.34% p.a) South West Slopes Credit Union Optimum Investor Fixed Rate Loan (Principal and Interest) 3 Years
Rates accurate as of 18 April 2024
Savings accounts
Do you have a specific savings goal in your sights? Or are you more interested in stashing some cash aside for a rainy day, just in case?
If you’re actively making cuts to your everyday spending with an aim to save up for a future purchase, such as a house deposit, you could consider a savings account that’s optimised for regular savers. These often offer higher bonus interest rates for savers who fulfil the bank’s terms and conditions, such as making regular monthly deposits and no withdrawals. Just remember that not fulfilling these conditions could mean missing out on the bonus interest, and may affect your progress towards your goal.
Standard savings accounts may offer a more consistent interest rate, with no bonus rates or hoops to jump thorough. While you may not always receive quite as much interest as a bonus rate account on average, you can still be rewarded for keeping your savings in the account, and still have access to the cash if you really need it.
Some of the top savings account interest rates on the RateCity database at the time of writing include:
- 5.55% p.a maximum rate (0.55% p.a base rate) ME Bank HomeME (Max balance $100,000; deposit $2k+ into linked bank account and grow savings balance for max rate).
- 5.50% p.a maximum rate (0.55% p.a base rate) ING Savings Maximiser (Max balance $100,000; deposit $1k+ and make 5+ transactions in linked bank account, plus grow savings balance for max rate).
- 5.50% p.a maximum rate (0.10% p.a base rate) MOVE Bank Growth Saver Account (Max balance $25,000; deposit $200 into savings account each month and make no withdrawals for max rate).
- 5.40% p.a maximum rate (1.20% p.a base rate) AMP Saver Account (Max balance $250,000; deposit at least $1,000 each month for max rate).
- 5.35% p.a maximum rate (0.05% p.a base rate) Virgin Money Boost Saver (Deposit $1k+ into linked account, make 5+ trans. / mth, provide 32 days’ notice to withdraw cash for max rate).
Rates accurate as of 18 April 2024
Credit card interest rates
Many Australians may still be struggling with their post-holiday debt hangovers. According to data from the RBA, the total credit card bill attracting interest on personal credit cards is now $17.61 billion – an increase of $36.1 million from the previous month. At an average interest rate of 18.34%, Australian households are now collectively shelling out an estimated $8.8 million in interest charges a day.
So, what can you do about credit card debt? If your bank won’t reduce your interest rate (just like with a home loan, you’ll have to ask first), you could consider switching to another card and transferring your balance. You could be offered a no-interest period to concentrate on getting the balance paid off, though you may be charged more interest after it expires on whatever is left. And while you’re focusing on clearing credit card debt, it’s worth trying to avoid swapping it out for another debt, such as Buy Now Pay Later.
Some of the lower purchase rate credit cards on the RateCity database at the time of writing include:
- G&C Mutual Bank Low Rate Visa Credit Card – 7.49%
- Easy Street Financial Services Easy Low Rate Visa Credit Card – 8.99%
- MOVE Bank Low Rate Credit Card – 8.99%
- Community First Bank Low Rate Blue Visa Card – 8.99%
- Bank Australia Low Rate Visa Card – 9.39%
Rates accurate as of 18 April 2024
Lead Image Credit: Disney/iStock
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