Best interest rates fall around 5.60% p.a. right now for savings and home loans
Saving and spending are two key parts of money management. Right now, we’re in a high-interest-rate environment , meaning home loans, savings accounts, and term deposits are all much loftier than they used to be.
But in the Mozo database, an interesting trend has emerged. (Sorry). As of 9 October 2023, the lowest home loan interest rates and highest savings account interest rates – i.e. the best rates – hover between 5.50% and 5.60% p.a.
Lowest home loan variable interest rates (9 October 2023)
|
Lender
|
Loan
|
Interest Rate
|
|
Pacific Mortgage Group
|
Standard Variable Home Loan
|
5.59% p.a. (5.59% p.a. comparison rate*)
|
|
Teachers Mutual Bank
|
Your Way Basic Variable Home Loan
|
5.64% p.a. (5.70% p.a. comparison rate*)
|
|
Reduce Home Loan
|
Basic Home Loan
|
5.69% p.a. (5.73% p.a. comparison rate*)
|
|
Community First Bank
|
Basic Variable Home Loan
|
5.69% p.a. (5.74% p.a. comparison rate*)
|
Lowest home loan fixed interest rates (9 October 2023)
|
Loan term
|
Lender
|
Loan
|
Interest Rate
|
|
1-year
|
Macquarie Credit Union
|
Fixed Rate Home Loan
|
5.48% p.a. (7.89% p.a. comparison rate*)
|
|
2-year
|
South West Slopes Credit Union
|
Optimum Fixed Rate Home Loan
|
5.49% p.a. (6.18% p.a. comparison rate*)
|
|
3-year
|
Australian Mutual Bank
|
Fixed Rate Home Loan
|
5.48% p.a. (6.10% p.a. comparison rate*)
|
Highest savings account interest rates (9 October 2023)
|
Bank
|
Account
|
Maximum Interest Rate^^
|
|
ME
|
HomeME Savings Account
|
5.65% p.a.
|
|
BOQ
|
Future Saver Account – 14 to 35 years
|
5.50% p.a.
|
|
Teachers Mutual Bank
|
Target Saver
|
5.50% p.a.
|
|
ING
|
Savings Maximiser
|
5.50% p.a.
|
|
MOVE Bank
|
Growth Saver
|
5.50% p.a.
|
^^ Bonus rates must have terms & conditions met to unlock.
But before you start connecting the dots and hailing the Illuminati, let’s keep things in perspective. On average, home loan rates still tend to be much higher than savings rates.
- Average home loan rate (OO, P&I, LVR<80%): 6.62% p.a.
- Average introductory savings rate: 4.94% p.a.
And the current syncing of best rates? Coincidence, unfortunately.
Rates may start to diverge soon, as well. Fixed interest rates, such as fixed home loans and term deposits, have started to creep down as the Reserve Bank rate hold continues. Savings rates will probably drop further and harder once the RBA makes cuts, so this coincidence probably won’t last long. But we can still appreciate it while it’s here. (Without hailing the Illuminati).
Compare low rate home loans in the table below. All averages current as of 9 October 2023.