Trending Financial News 5 March 2020

Which banks have cut home loan interest rates?

The Reserve Bank cut interest rates on 3 March by 0.25 percentage points to 0.50%.

All four big banks were quick to announce home loan rate cuts of 0.25 percentage points in the wake of the RBA cut.

Other banks to pass on the full 0.25 percentage point rate cut to their home loan customers include:

Athena Home Loans

Auswide Bank

firstmac

Macquarie Bank

Suncorp Bank

Reduce Home Loans

St George Bank

Bank Of Melbourne

BankSA

HomeStar

Loans.com.au

86 400

Compare home loan rates from Australia’s banks and credit unions at InfoChoice.

First savings rate cuts announced

Term deposit market leader Judo Bank is the first institution to announce cuts to savings rates following the RBA’s cut to official interest rates yesterday. Judo Bank’s term deposit rate cuts are effective immediately, 1pm 4 March 2020.

Judo Bank has sliced 0.05 percentage points from their 12-month rate from 2.0 per cent pa to 1.95 per cent pa.

Compare term deposit rates from Australia’s banks, credit unions and neobanks at InfoChoice.

Compare savings account rates at InfoChoice.

New Commbank app update has cashback shopping rewards

The CommBank app has been updated and now features cashback shopping rewards at some of Australia’s leading retail brands.

You can get cashback rewards from brands like Domino’s Pizza, Flight Centre, Just Jeans, Portmans, RedBalloon, Endota and more. The Flight Centre offer is $100 cashback when you spend $1500 (terms and conditions apply). The Commbank app comes with Apple Pay, Android Pay, BPay, and Cardless Cash.

5.9 million people use the Commbank app which has been rated one of the world’s best banking apps by Forrester Research.

Read InfoChoice’s review of the Commbank app update at InfoChoice.

New Judo Bank term deposit rates

Judo Bank has sliced 0.05% pa from many of its term deposit rates, including the popular 6 and 12-month terms.

6-month term deposits are now paying 1.90% pa. The top Judo term deposit rate is still 2.35% pa for five years.

These Judo Bank term deposit rates are effective from 4th March 2020:

Go directly to Judo Bank term deposit interest rate information at InfoChoice.

New Queensland mega Super fund coming soon

QSuper and Sunsuper have signed a Memorandum of Understanding ahead of a merger. The two funds announced any potential combination would be subject to a best interests of members test and regulatory approvals including the passage of enabling legislation.

The two funds signalled their merger intentions late last year.

Which bank wants to be number one online?

The number of new online banks in Australia continues to climb as Australians migrate their banking and financial relationships from bank branches to mobile apps and online bank portals.

Australia’s biggest bank, measured by number of customers, market capitalisation and funds under management is Commonwealth Bank. Commonwealth Bank overhauled its core banking system three years ago to prepare for new digital developments.

Commonwealth Bank’s Netbank site is ranked one of the top online banking portals in the world. CBA’s Commbank app for mobile is ranked the number banking app in Australia by Forrester Research.

Commbank app set to get better and better

Commonwealth Bank’s Commbank app features tap and pay, Android Pay and Apple Pay. In 2020, the bank added Buy Now Pay Later functions in association with the Klarna app. Read InfoChoice’s review of Klarna.

Commonwealth Bank has now unveiled a new fintech project, X15 Ventures, which is planning 25 new customer-focused digital businesses over the next five years.

Commonwealth Bank plans to invest $1 billion a year over the next five years in digital and technological developments said CBA’s CEO Matt Comyn.

“Through the launch of X15 Ventures we are building a pipeline of new digital businesses with a focus on delivering the best customer experiences”

Read InfoChoice’s review of the Commbank app at InfoChoice.

Best balance transfer credit card deals in March 2020

The best balance transfer credit cards offer long periods of zero interest with low or no one-off balance transfer fees, a reasonable revert rate once the introductory period is over and reasonable annual fee. Plenty of Frequent Flyer credit cards have great balance transfer offers.

The Bankwest Breeze Platinum Mastercard has a zero per cent interest period of 26 months on balance transfers after which the purchase rate of 12.99 per cent p.a. applies.

There’s a balance transfer fee of two per cent of the balance being transferred, as well as an annual fee of $99 ($49 for the first 12 months).

Go directly to Bankwest credit card interest rate and fees information at InfoChoice.

Read more about the best balance transfer credit cards in March at InfoChoice.

RBA rates outlook 2020

The Reserve Bank of Australia cut rates by 0.25 percentage points to 0.50% in March 2020 and signalled that it may be prepared to cut again.

The RBA’s March statement was clear: expect another rate cut if the coronavirus spreads.

The RBA board said it is assessing the implications of the coronavirus on the Aussie economy and is “prepared to ease monetary policy further.”

Keep up to date with the latest outlook for RBA interest rates in 2020 and 2021 at InfoChoice.

The history of interest rates in Australia

The history of interest rates in Australia is a fascinating story covering some of the biggest political and financial events in this nation’s development.

In 2019 and 2020, rates have continued to fall. In October 2019, the “Donald Trump rate cut” delivered a 0.25 percentage point cut in Australia. In March 2020, the “coronavirus rate cut” sliced another 0.25 percentage points from the RBA’s official cash rate. Banks and other lenders rushed to pass through the March rate cut to retail borrowers.

Read more about the history of interest rates in Australia at InfoChoice.

Xinja Bank attracts 25,000 customers in less than 50 days

Neobank Xinja bank launched the Xinja Bank Stash account to the public in January 2020.

“Only 47 days after we launched to the market [as a full-fledged bank] Xinja has the privilege of holding over $300 million in deposits for 25,000 customers,” said Xinja Bank CEO Eric Wilson.

“Our customers tell us they choose Xinja because we have no connections to existing banks, our products have no tricky conditions to them.”

Read InfoChoice’s review of Xinja Bank Stash account.

Go directly to Xinja Bank interest rate and fees information at InfoChoice.

Xinja Bank could “limit deposits”

Xinja Bank is losing money fast and has asked investors for an additional $50 million after three years of losses.

Xinja Bank CEO Eric Wilson said the bank “may well choose to limit further deposits as we focus our attention on the asset [loans] side of the balance sheet.

Wilson said Xinja plans to have unsecured personal loans available by mid 2020, followed by secured loans (car loans) and home loans.

By 2025, Xinja Bank projects that it will have 900,000 customers. Read Xinja Bank – What is all about? at InfoChoice.

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