More pain for Aussies as banks hike rates on home loans while savings account rate falls
- Most Australians expected to feel rate pain this Christmas
- Big 4 banks increase variable home loan rates while savings accounts starting to fall
- Aussies need to shop smarter this holiday period
October 24, 2015, Sydney – Comments by Michelle Hutchison, Money Expert at one of Australia's biggest comparison websites finder.com.au:
"Variable rate mortgage holders will not be the only ones to feel the pinch this Christmas, as savings account holders are also expected to be slapped with lower returns.
“The big four banks have all lifted interest rates on their variable home loans this month, with ANZ the last to follow, increasing by 0.18 percentage points effective November 20.
“While the big four banks have lifted rates on mortgage holders, Citibank has lowered its ongoing rate to its Online Saver Account by 0.20 percentage points to 2.40 percent.
“It’s likely that other banks will either lift their variable home loan rates or drop their savings account rates, or both.
“These changes prove that the Reserve Bank’s decision on the cash rate is having less of an impact on interest rate movements to financial products like home loans and savings accounts. This makes it harder for people to get a sense of which direction rates will move so they need to be more cautious.
“It’s also bad timing for many Australians, who will be feeling the pinch this Christmas, which is the biggest spending season of the year. We’ve already seen the shopping season begin, with
almost three-times more Australians shopping for gifts using online discount codes on finder.com.au/deals. Shoppers will have to shop wiser to ensure they don’t overspend this summer holiday period.”
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The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.
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