Meet the local banks attracting customers from a distance
One of the greatest benefits of the digital banking revolution for Australian consumers and small banking providers alike is that the boundaries that once existed are no longer.
With 99.1% of all banking transactions now taking place digitally^, this has opened up some fantastic opportunities for Aussies looking for better deals on their banking products. It’s also been a big win for smaller banking providers in seeking out new customers beyond their traditional catchments.
When you could be paying thousands less in interest on your mortgage each year or earning hundreds more in interest on your savings, not being a local could be a savvy financial move to consider in 2025.
Check out the Mozo editor’s rundown of some of the providers now operating in your banking hood.
Home Loans
SWS Bank - Special Fixed Rate
- Competitive 3 year fixed rate 4.99% p.a. (6.15% p.a. comparison rate*)
- Free redraw
- Available on loans from $800K up to $2.5 million
SWS Bank’s head office is located in Young, NSW, and its Special Fixed Rate Home Loan has one of the most competitive rates currently in the market at 4.99% p.a. for 3 years for loans $800K and above. You can apply online or talk with their staff during business hours. There are no application, ongoing or banking fees to pay and first home buyers and refinancers can apply with a 20% deposit. There isn’t an offset account but you can make up to $20,000 per year in additional repayments and it has a free redraw. 800k minimum loan up to $2.5 million. Other fees may be applicable. T&Cs apply.
IMB - Budget Home Loan
- 6.04% p.a. variable rate (6.07% p.a. comparison rate*) for borrowing up to 80% loan to value ratio
- Up to $4,000 cashback (T&Cs apply)
- Unrestricted additional repayments
For over 144 years, IMB has been providing banking services to people in the Wollongong area, and now with a digitally-led focus it is open to all Australians. The Budget Home Loan includes a life-of-loan discount off the standard variable interest rate so you’ll always pay less. If your LVR is 80% or less, there’s also currently a cashback offer which is scaled depending on your borrowing amount, with the maximum amount up to $4,000 for loans above $700K once approved. There are no monthly fees and the Budget Home Loan comes with the ability to make unrestricted additional repayments to pay your mortgage off sooner. Loan terms of up to 30 years. No offset account.
Newcastle Permanent - Real Deal Home Loan
- 5.99% variable rate (6.03% comparison rate*) for borrowing up to 80% loan to value ratio
- Free extra repayments
- Get up to $3,000 cashback by applying for a new purchase or refinancing online
Newcastle Permanent is part of the NGM group, one of Australia’s largest customer-owned banks. The Real Deal Home Loan features a competitive interest rate and no ongoing service fees, but there is a $595 loan establishment fee. Not only is it easy on the wallet, but this loan also comes with features like the option to make free extra repayments, split your loan between fixed and variable rates and use a partial offset account. Plus, you could get up to $3,000 cashback by applying for a new purchase or refinancing online, if approved.
BCU Offset Home Loan
- 6.14% variable rate (6.17% comparison rate*) for borrowing up to 95% loan to value ratio
- Free extra repayments
- No ongoing on annual fees
Get more bang for your buck with the customer-owned BCU Bank Offset Home Loan. You can use your savings to offset the interest you pay, and access your money when you need it. You’ll be able to access your funds easily with the free redraw facility and you’ll only need a 5% deposit to get started. Plus, there are ongoing loan fees to pay, so you can focus on what’s important - paying off your home sooner.
Savings Accounts: All deposit accounts listed below are protected up to $250,000 under the Financial Claims Scheme (FCS)
First Option Bank Savings + Bonus
- Earn up to 5.00% p.a maximum interest
- No account fee
- Support environmental and conservation projects
Initially serving people in the technology, manufacturing, leisure and energy industries, First Option Bank is a member-owned bank which now serves customers across Australia. It is a carbon neutral business and funds positive change environmental and conservation projects. The Savings + Bonus Account has a 5.00% p.a. maximum interest rate as long as you deposit $100 each month and not make any withdrawals (on balances up to $250K). If you don’t meet the criteria the rate drops to 2.00% p.a. There is a $5 monthly membership fee which is waived for the first 3 months and if you have an account balance of more than $1000. Access your money anytime via internet banking or the Unity banking app.
MyState Bank Bonus Saver Account
Headquartered in Tasmania, MyState Bank offers products designed to simplify the way you manage your money. If you’re a committed saver who likes to be rewarded for your good habits, the Bonus Saver account features a neat 5.00% p.a. maximum interest rate and no account fees. Simply deposit $20 or more each month and make a minimum five transactions via a linked MyState Bank everyday transaction account to score the maximum rate. If you don’t meet the criteria the base rate of 0.05% applies. According to MyState you can open an account online in less than 5 minutes.
Unity Bank MoneyMAX Account
Originally for Maritime workers and their families, Unity Bank is a Member-owned bank that offers a wide range of financial products and services Australia wide. If you want a straightforward savings account, the MoneyMAX has a standard interest rate of 4.70% p.a. and no monthly criteria or withdrawal conditions to contend with. You will get unlimited access 24/7 via online banking or the Unity banking app.
P&N SwiftSaver Account
- Up to 4.50% p.a maximum interest rate
- Simple bonus rate criteria
- No opening balance requirements
- Pay&Save round-up feature
P&N Bank is WA’s largest locally-based customer-owned bank but Aussies from around the country can join to take advantage of its products and services. The Swift Saver is a simple savings account with a maximum interest rate of 4.50% p.a. when you deposit at least $10 and make no withdrawals in the month. The standard rate is 0.05% so it’s a good idea to set up an automatic transfer to ensure you hit the bonus criteria each month. If you also have a transaction account with P&N you can set up Pay&Save which automatically rounds up your purchases to the nearest dollar and sweeps it into your savings account for hassle-free saving. Mobile app and internet banking options.
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
^See information about the Mozo Experts Choice Home Loan Awards
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.