Interest rates news and advice

All the latest news on interest rates in Australia.

How australia s recession impacts your finances and banking

How Australia's recession impacts your finances and banking

We’ve all seen the headlines: Australia is now facing its first recession in nearly 30 years. The numbers support the claim.Australian Bureau of Statistics data released this week shows the nation’s economy contracted by 7% in the June quarter, the sharpest quarterly fall in the Gross Domestic Product (GDP) on record. It follows another GDP drop of 0.3% in the March quarter. This means the country has now recorded two consecutive quarters of negative growth - the technical definition of a recession, which Australia hasn’t experienced since 1991. Treasurer Josh Frydenberg said these numbers “confirm the devastating impacts on the Australian economy from COVID-19.” Many people are out of work, while others have seen their pay cheques cut. Spending is down too, with a number of recent surveys revealing most Australians are pulling the reins in on discretionary purchases and focusing on savings instead. So, what’s next?

Read More
Why mutual banks and credit unions have the happiest customers

Why mutual banks and credit unions have the happiest customers

At some point, every Australian might find themselves shopping around for a financial product, such as a home loan or a credit card. And while familiar brands like the Big 4 (ANZ, NAB, CommBank, Westpac) may be front of mind, Roy Morgan research shows the happiest customers actually belong to mutual banks or credit unions.For context, mutual banks are credit unions that have gone through an application process with the Australian Prudential Regulation Authority (APRA) to call themselves a ‘bank’. Besides that, there’s not much difference between the two.Right now over 30 mutual banks operate in Australia - a sector made up of more than four million Australian consumers. And for several years now, they’ve maintained the lead on customer satisfaction, according to Roy Morgan data.In May 2020, mutual bank satisfaction levels hit a high 89.2%, a slight increase from a year ago. Meanwhile the four majors lagged behind at 77.2%. So what’s the magic behind mutuals? Mozo’s banking expert, Peter Marshall says it comes down to their personalised service and strong community focus. “Mutuals and credit unions tend to be smaller than a lot of big traditional banks and more focused on a geographic area or a type of customer, so they can be more in touch with their customers’ needs,” he says.“There’s also that feeling of membership that they give you, because you have become a member of a mutual or credit union to use their product. “A lot of people like that they’re not just another number.”

Read More