The increase comes just one month after the central bank raised rates to 3.85% in February, and follows a sharp escalation in global tensions that has rattled energy markets and revived concerns about rising prices.

For households, the decision is likely to mean higher mortgage repayments and renewed pressure on already stretched budgets. The upside for savers is that term deposit and savings account rates may also rise.

How did we get here?

A lot has changed since the RBA's February decision.

When it lifted the cash rate to 3.85%, the bank pointed to three main reasons: the economy was growing a little faster than expected, the labour market was expected to remain healthy, and inflation was still forecast to peak at 4.2% in June before only gradually returning to target by June 2027.

At first, the data did little to challenge that view.

On February 19, Australian Bureau of Statistics figures showed unemployment held steady at 4.1%, while employment rose by 18,000 people. Then, on February 25, inflation for the 12 months to January came in at 3.8%, unchanged from December and broadly in line with expectations.

At that point, markets were calm. As recently as March 2, traders were effectively pricing in no chance of a March rate rise.

That changed abruptly in the early hours of March 3, when the US and Israel entered war with Iran, triggering a major supply shock in global oil markets.

Iran's move to block the Strait of Hormuz - a critical shipping route for roughly 20 million barrels of oil a day - sent crude prices surging.

Oil prices then swung wildly, climbing to almost US$120 a barrel, dropping back to US$80, then rising again above US$90.

Petrol prices jumped in Australia, prompting the ACCC to warn service stations against price gouging.

The shift in sentiment was swift. Within two weeks, market pricing implied a 71% chance of a March rate rise.

Economists at Commonwealth Bank, NAB, ANZ and Westpac began forecasting not one but two quarter-point hikes in March and May, which would take the cash rate to 4.35%.

RBA deputy governor Andrew Hauser also signalled growing concern before the meeting. Speaking on the Politics with Michelle Grattan podcast, he said the bank's February inflation forecast of 4.2% for June was now likely to be exceeded.

"It's still in flux [...] I don't want to give a number that might give a false sense of accuracy. But certainly directionally it's higher than the projection we published in February," Hauser said.

"It's worth us continuously reminding ourselves just how toxic inflation is. We've only just had an experience of that and we don't want to go through that period again."

Cash rate hike: the case for and against

Not all economists believed the RBA needed to move immediately.

Anthony Malouf, market analyst at Ebury, said Australia's position as a net energy exporter could offer some protection, even if higher fuel costs still create short-term pain for households.

"The Australian dollar remains underpinned by Australia's status as a net energy exporter," Malouf said. "Prolonged global energy shocks historically lift export prices, providing a significant boost to our terms of trade."

Malouf's broader point was that the RBA may have been better off waiting for more data, particularly with signs that consumers and businesses were already losing momentum.

CBA spending data showed household spending fell 0.5% month-on-month in February, while consumer sentiment remained weak and NAB's business survey showed confidence slipping back into negative territory.

Others saw a stronger case for immediate action.

MLC senior economist Bob Cunneen said the spike in petrol prices could quickly spread through the economy and push inflation materially higher in coming months.

"The sharp surge in petrol prices in the aftermath of the Middle East war is the immediate catalyst for an interest rate rise," Cunneen said.

He estimated the jump in fuel prices alone could add about one percentage point to inflation, with higher transport, fertiliser and food costs likely to add to the pressure over time.

Tougher times for homeowners

Ultimately, the RBA raised the cash rate, matching hawkish economists' expectations.

Lenders had already priced in the move: 12-month term deposit rates pushed above 5% p.a, with Bank Australia, Qudos Bank and Community First Bank at or above that level and more likely to follow.

Conversely, for mortgage holders, the latest move adds to repayment pressure as households cut back.

If the RBA hikes again in May as expected, the 75 basis points of increases since the start of the year would add about $239 a month to repayments on a $500,000 home loan, or $478 a month on a $1 million loan.

Three steps for homeowners to reduce mortgage stress

Peter White, outgoing managing director of the Finance Brokers Association of Australia (FBAA), says homeowners should take three simple steps to make sure they are not paying more than they need to.

1. Benchmark your rate

Speak to a mortgage broker to compare your current loan with what is available across the market.

"There's no charge for this, and a broker has access to lender options not available to the public direct, including non-bank lenders," White says.

2. Ask your lender to match it

If there is a better rate available elsewhere, call your lender and ask for a reduction on your existing loan.

"Be warned: they won't call you; you have to make the approach."

3. Refinance if they won't move

If your lender will not budge, consider switching to a lender offering a lower rate that still suits your needs.

"Unlike banks, who act in the best interests of their shareholders, mortgage brokers are legally obligated to act in the customer's best interests," White says.

Following last week's interest rate rise, many homeowners throughout Australia are wondering the same thing: How much will this add to my mortgage repayments, and can I get a better deal at another bank?

As the cost of living continues to soar, comparing rates and lenders can be a great way to ease the financial pressure that many homeowners are under. It's a sensible step, but far too many Australians are skipping something that takes minutes, costs nothing, and could potentially save you thousands of dollars each year: checking your credit report.

Lenders across Australia decide how 'risky' an applicant is based on their credit history and credit report. That means if you have poor credit health, you might end up paying more, while good credit health unlocks better rates and more competitive products.

However, to ensure you're in the best position possible, you have to be familiar with your credit report and what it means for your finances. So before you refinance, renegotiate, or apply for a new home loan, here's why you should first check your credit report.

Your credit report is part of the price you pay

A mortgage rate is not just about the headline numbers on comparison sites. Lenders look at your overall application, including your income, expenses, existing debts, and your credit report, before deciding what rate and loan product is right for you.

Put simply, your credit report is a record of your credit history. It can include information like what credit accounts you have, how your repayments have been managed over time, and a history of credit applications.

From a lender's perspective, this is part of how they assess how risky you are as a customer. From your perspective, it can be the difference between qualifying for a lower rate or being offered something higher, even in the same market.

A small difference adds up quickly. On a $600,000 loan over 30 years, a 0.25 percentage point higher rate can mean roughly $100 more per month. Over time, that becomes tens of thousands of dollars that could have stayed in your pocket.

Why now is the moment to check your credit report

In addition to the RBA's interest rate rise, many homeowners throughout the country are approaching the end of their fixed-rate loan periods, and repayments are shifting as a result. If you are about to shop around, you will likely be asked for permission to run a credit check on your credit report as part of every new application.

To improve your bargaining position, it's important that you know what potential lenders are seeing on your credit report. This will help you in two key ways:

First, it will help you make more informed decisions about what rates are realistic and achievable based on your credit health.

Second, it will help you avoid making too many  applications to different lenders in quick succession, which can make you look riskier than you are. When you know your bargaining power based on your credit report, you can strategically apply for the rates and products that are best for you.

It's easy, fast, and free to check your credit report

Australians are entitled to a free copy of their consumer credit report from a credit reporting body every three months, and sometimes more often in specific situations. If you only do one thing this week, make it this.

Once you have your report, focus on three checks:

1. Make sure the basics are correct

Start with your personal details. Errors can happen, and mismatched information can complicate an application. If anything is wrong, take steps to correct it through the relevant credit reporting body.

2. Look for issues that could be costing you

Scan for defaults you do not recognise, accounts you never opened, or repayment history that does not match reality. If you see something that looks incorrect, dispute it. Fixing errors before you apply for a new loan can make a real difference to how smoothly your mortgage process runs.

3. Review your credit enquiries

If you've been shopping for credit products, you might see multiple enquiries listed. This is one reason it helps to plan your refinancing approach before you lodge applications with several lenders. A scattergun approach can do more harm than good, so it's often better to narrow your shortlist and focus on products more suited to your credit health.

If, after completing these three steps and trying to get a better rate, your loan repayments still feel unmanageable or overwhelming, make sure you contact your lender to discuss your options. When you're experiencing financial hardship, you may be able to access temporary adjustments to your loan, such as deferred or reduced payments.

It's important to remember that financial hardship assistance will not affect your credit score, but missing payments before you discuss your situation with your lender can. This is why it's essential to contact your bank as soon as possible.

Rate rises should not only prompt Australians to look at repayments; they should also prompt us to better understand how our credit health plays a role in the financial products and services we're able to access.

By arming yourself with your credit report, you can widen your loan options, strengthen your negotiating position, and avoid paying more than necessary for years to come.

If you're not sure how to get started, CreditSmart's free resources can walk you through how credit reporting works and how to access your information.

Roughly one in three Australians - the equivalent of 7.3 million people - are planning a trip abroad in 2026, according to a recent survey undertaken by Finder.

Travelling internationally isn't a cheap exercise though. Australians are budgeting $7310 on average for a two-week holiday overseas, research recently released by ING reveals.

Much of that travel budget will go towards essential costs like flights, accommodation and activities, but one area that travellers are unlikely to be happy about forking out money on is banking fees.

So, for people planning to take some time off for an overseas holiday in 2026, which banking fees and card costs can be avoided?

1. Foreign exchange fees on debit and credit cards

In the 12 months to August last year, ING research found that Australians lost around $600 million to international transaction fees alone.

These are common fees attached to debit cards and credit cards which crop up when users make transactions outside of Australia (even online) or in a foreign currency.

"International transaction fees and exchange rate mark-ups on debit and credit cards can add up to 4% per transaction, and that's before any annual fees or minimum spend requirements," says Caecilia Chu, co-founder and chief executive of fintech and travel card provider, YouTrip.

"The amount may seem small at first, but it adds up quickly over the trip."

As the table above shows though, international transaction fees are avoidable.

However, it's always worth comparing the full suite of fees and features attached to a card before deciding if it's a worthy companion for your next holiday abroad.

2. Cash withdrawal fees at ATMs

Whether home or abroad, most Australians won't want to have to fork out a fee to withdraw cash. The difference is, the cost of withdrawing money abroad can really add up.

Many Australian banks charge a transaction fee on withdrawals, and some will charge an additional withdrawal fee. On top of that, it's also common for third-party ATM operators to charge a fee.

As it turns out, the latter can be very expensive, depending on where you are in the world.

An analysis conducted earlier in the year by Wise found that in some of the popular destinations for Australians, travellers pay double-digit fees, on average, to withdraw cash.

For instance, Wise found that the average third-party ATM fee was 27.1% in Vietnam and 10.91% in Indonesia. On a $200 cash withdrawal in Vietnam, that would equate to a fee of $54.

Tristan Dakin, ANZ country manager at Wise, says that there are more cost-effective ways for travellers to withdraw cash overseas though.

"Tips include looking for bank-operated ATMs, that offer clearer fee disclosures, making fewer, larger withdrawals rather than many small ones, and being sure to select local currency rather than AUD when withdrawing cash, to avoid higher mark-up rates."

3. Dynamic Currency Conversion costs

Many Australian travellers will have found themselves in a situation where, upon going to pay for a bill at a restaurant or cafe, they have been presented with the option of paying in the local currency (e.g. Euros) or their home currency (Australian Dollars).

This is what's known as Dynamic Currency Conversion (DCC) - a service offered by some merchants and  payment providers.

In theory, it's a useful idea. After all, seeing a purchase in Australian dollars can give you a better appreciation of the true value of whatever you're paying for.

The problem is, as Chu explains, using Dynamic Currency Conversion typically comes with a cost attached.

"While paying in AUD may feel more familiar, it comes with a poor exchange rate and additional DCC mark-ups between 3-7%, set by the overseas merchant or payment processor.

"In such a scenario, selecting the local currency is the more cost-effective option as it allows your card provider to handle the conversion."

Beyond joining the long list of creditors, there's a faster option many shoppers overlook: requesting a credit card chargeback through your bank.

What is a chargeback?

"A chargeback occurs when a cardholder disputes a transaction that was processed via a merchant facility," says Michael Bjazevic, the head of payments risk at Tyro.

"This usually happens when a cardholder believes the transaction was processed incorrectly, was not authorised by them, or when the goods or services were not received, or as described."

So in essence, a chargeback acts like a refund. If a debit card or credit card payment is successfully disputed then the transaction will be reserved and the funds returned.

Bjazevic explains that Australian banks and businesses with a banking licence like Tyro are obligated to pursue chargeback requests made by their customers, but they try to look into them quickly as part of their customer service.

The schemes themselves are actually run by the major payment card networks though, which is why chargebacks can be sought for card payments but not for the likes of bank transfers or direct debits.

"The chargeback rules and process is governed by the schemes from Visa, Mastercard and others, not the banks," Bjazevic says.

"If a customer asks their bank for a chargeback, a decision is made on whether it's valid, based on the rules of the card scheme. Banks that are members of card schemes are legally obliged to pursue chargebacks under the law of contract."

When can you seek a chargeback?

Given that most Australians make hundreds, if not thousands, of purchases with a multitude of businesses each year, it's inevitable that things go wrong from time to time.

Alexandra Kelly, director of casework at the Financial Rights Legal Centre, says that chargebacks can be an option in a variety of situations where people have made their purchases using a card attached to a payment scheme like American Express, Mastercard or Visa.

"Examples of this include when you don't get what you've paid for, or the purchase is not as described, or counterfeit, or defective," Kelly says.

"You can also seek a chargeback if you were charged multiple times, or the wrong amount. Each scheme has their own rules, including when you must apply for one through your card provider and the grounds.

"Chargebacks can also be sought if the transaction was fraudulent, you cancelled a recurring transaction, or if a merchant became insolvent."

In the case of companies that have become insolvent, Kelly recommends that those thinking about pursuing a chargeback should do so as soon as possible.

That's because the card schemes have limits on how long a chargeback can be requested after a transaction has been processed. They differ from scheme to scheme, but that timeframe typically ranges from 45 days to 120 days.

How can you request a chargeback?

Taking a step back though, Kelly recommends that the first action to make before requesting a chargeback is reaching out to the merchant or retailer.

"Like all consumer problems, always try and solve a problem with the merchant first - this is the quickest and easiest way to get your money back.

"If you have no luck with the merchant, contact your card issuer - generally a bank. They can claim a chargeback from the merchant's bank, but there are time constraints that depend on the card scheme involved."

Most banks require their customers to message them or fill out a form if they're looking to request a chargeback, and customers may also need to include evidence that they've tried to obtain a refund themselves with the merchant in question.

The bank will then go about investigating the request, which may take some time as the merchant and merchant's bank have the opportunity to respond. And as Bjazevic explains, it won't always end in success for the customer.

"The chargeback process does not guarantee that a transaction will be refunded. The cardholder may not have a chargeback right under the scheme rules or the merchant's bank may have a valid reason for rejecting the chargeback."

What if you're unhappy with the chargeback outcome?

While rejections can be totally valid, if you believe that your bank hasn't lived up to its obligations while looking into a chargeback request you can complain to the bank itself, or failing that, lodge a complaint with the Australian Financial Complaints Authority (AFCA).

"If your card issuer or bank will not accept the chargeback request or it is rejected, get written reasons from them and consider lodging a complaint with AFCA - but remember that AFCA can only look at whether your bank met its obligations in seeking the chargeback," Kelly says.

"It's important to know that if a chargeback is rejected by the merchant's bank, the card scheme makes the final decision - and AFCA can't review the card scheme's decision, only the actions of your card issuer or bank."

• Find out how we chose the winners
• Order your copy of the bumper awards issue
• Check out more from Best of the Best 2026

Whether it's doing chores around the house or taking on a casual job, plenty of younger Australians work hard to earn their money. It's only fair then that their savings work just as hard.

It's accounts that sport competitive rates and low (or no) fees that this award category seeks to highlight, such as the Youthsaver Account from the Commonwealth Bank.

"We're incredibly proud that our Youthsaver account has been recognised by Money magazine," says Gareth Chim, general manager of deposits, pricing and governance at Commonwealth Bank.

"This award reflects our commitment to helping young Australians build strong financial foundations from an early age."

As one of the first banking products that young Australians engage with, Chim says that children's savings accounts can be more than a place to store savings - that they can also instill financial habits that benefit kids throughout their lives.

"With Youthsaver, we offer bonus interest when young savers grow their savings balance each month, helping them make the most out of their money, while reinforcing the benefits of regular deposits.

"By offering bonus interest for growing balances, we help customers understand the value of consistency and goal setting."

Looking for a customer-owned bank instead?

One of the major money lessons many of us end up learning throughout our lives is that loyalty doesn't always pay - that shopping around can make a real difference.

It's a lesson that can be applicable to all manner of financial products - even children's savings accounts where the difference between an account offering good value and great value can be stark. Rolf Stromsoe, chief customer officer at Great Southern Bank says that taking the time to help kids compare accounts can be rewarding both in terms of the interest they're able to earn on their savings, but also as an enduring lesson.

"Just as adults are encouraged to find the best place for their savings, it's just as important to do the same for children," says Stromsoe.

"By giving young people a safe and rewarding place to watch their savings grow, we're helping them build confidence and understand the importance of saving early - a valuable lesson that lasts a lifetime." Great Southern Bank took out top spot, thanks to the sharp interest rate and lack of monthly fees attached to its Youth eSaver account.

"We're so proud to see our account recognised in this way. It's a fantastic endorsement that we're offering one of the best savings accounts for young people in the market," he says.

How we found Australia's best savings accounts for kids

Savings accounts were ranked by weighted nominal interest rates that were applicable to a range of balances, after considering any applicable monthly or annual fees. Introductory terms and rates were also factored into the quantitative process.

This week on the Friends With Money podcast, Money's Tom Watson is joined by Chris Grice, chief executive of National Seniors Australia, to discuss reverse mortgages, equity release schemes and the government-run Home Equity Access Scheme.

00:00 Introduction

00:28 The 'asset-rich, cash-poor' dilemma

01:24 Exploring reverse mortgages

07:03 Addressing concerns about reverse mortgages

9:24 Equity release schemes

10:11 Introduction to the Home Equity Access Scheme

13:54 Comparing equity release options

16:02 Conclusion

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Listen to this episode of Friends With Money

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Friends With Money podcast FAQ

What is the Friends With Money podcast?

Friends With Money is a weekly personal finance podcast by Money magazine, offering expert insights on investing, budgeting, superannuation, property, and other money strategies for everyday Australians.

Where can I listen to the podcast?

You can listen on Apple Podcasts, Spotify, or YouTube (with closed captions available).

Who hosts Friends With Money?

Episodes are hosted by Vanessa Walker and Tom Watson from Money magazine, featuring expert guests and real conversations about money.

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Boost your financial literacy anytime, anywhere with the Friends With Money podcast from Money magazine. Whether you're commuting, working out, or relaxing at home, this weekly podcast makes it easy to grow your money knowledge on the go.

Each episode dives into real conversations about money - how it's earned, shared, saved, and grown - with tips and insights that make finance simple and relatable. Perfect for beginners and seasoned investors alike, it's your go-to guide for building better financial habits.

Subscribe to the Friends With Money podcast today and start learning when it suits you.

While board members noted the central projection was for the economy to remain broadly in balance, and consistent with the board's objectives, there were "significant uncertainties" on both sides of its baseline projection.

"Given that, members determined that they could afford to be patient while assessing what the incoming data reveal about their judgements on the extent of spare capacity, the outlook for the labour market and the degree of restrictiveness of monetary policy," the minutes said.

The RBA said members discussed developments that could materially influence their decisions at future meetings, noting that those decisions would be driven by how incoming data may alter the outlook for the economy.

Board members said if incoming data signalled the emerging recovery in demand was stronger than expected, further supporting employment growth, they would be more willing to keep the cash rate on hold.

"Members noted that such a scenario could emerge in several ways, including if global growth continued to be more resilient than forecast or if the strengthening in household income and wealth, combined with easier monetary policy than a year earlier, resulted in a larger-than-expected recovery in household spending.

"Another factor was if the incoming data caused the board to lower its judgement about the supply capacity of the economy.

"Members observed that this could happen if inflation remained high over coming months or if productivity growth proved to be weaker than expected."

Members also said if the board changed its assessment that monetary policy was still slightly restrictive, it would also be more inclined to leave the official cash rate where it currently stands at 3.6%.

"Members noted that any of these scenarios could limit the scope for further monetary easing, particularly with inflation having been above its target for much of the preceding few years," it said.

However, should the labour market weaken materially, it would be inclined to cut interest rates.

"Members observed that many indicators of the labour market had softened over the prior year. They noted the risk that employment growth in the market sector remains soft, which could occur if the uncertain economic outlook reduces firms' willingness to hire or if an emerging focus on cost-cutting results in layoffs.

"Alternatively, members noted that the recovery in GDP growth could prove to be weaker than expected if households are more cautious about spending than had been assumed.

"In both scenarios, excess capacity was likely to emerge and dampen inflationary pressures. If so, it would likely be appropriate to ease monetary policy to keep inflation at target and the labour market around full employment."

Board members agreed it was "not yet possible to be confident" about which scenario was more likely, which is why interest rates were left on hold in November.

The board said it remains "cautious and data dependent" as the end of the year approaches.

"Members committed to continue paying close attention to developments in the global economy and financial markets, trends in domestic demand, and the outlook for inflation and the labour market.

"The board will remain focused on its mandate to deliver price stability and full employment and will do what it considers necessary to achieve that outcome."

This article first appeared on Financial Standard

On a day known for upsets, the outcome of the Reserve Bank Monetary Policy Board's November meeting this afternoon will not rank among them.

In a surprise to no-one, the Board held the official cash rate steady at 3.60%.

In many ways, the decision was all but confirmed last week when September quarter inflation data revealed a larger-than-anticipated uptick in the price of consumer goods and services.

The annual headline inflation rate of 3.2% was the highest recorded since June 2024 thanks, in part, to a jump in electricity costs.

Meanwhile, trimmed-mean inflation - which is the RBA's preferred indicator - rose to 3.0% in the 12 months to September, which is the right at the top of the central banks' inflation target band.

In its post-meeting statement, the RBA Board acknowledged the uptick in inflation, but suggested that at least some of the increase was down to temporary factors.

"The recent data on inflation suggest that some inflationary pressure may remain in the economy.

"With private demand recovering and labour market conditions still appearing a little tight, the Board decided that it was appropriate to maintain the cash rate at its current level at this meeting.

"Financial conditions have eased since the beginning of the year, but it will take some time to see the full effects of earlier cash rate reductions."

What's next for interest rates?

Given that the outcome of today's meeting had been widely anticipated, much of the attention surrounding the cash rate has focused on when - or if - interest rates will be cut again.

Forecasts among economists are varied. Those at CommBank, for instance, expect that the RBA will keep the cash rate at 3.60% for a prolonged period unless there's a significant rise in unemployment coupled with a drop in inflation.

That view isn't shared by Westpac economists who anticipate that the Reserve Bank will hold off until next autumn before cutting rates in May and again in August.

"Monetary policy is still somewhat restrictive," says Luci Ellis, Westpac Group chief economist, in an economic update.

"Further cuts to the cash rate next year are therefore warranted given that underlying inflation will remain within the band and be heading down in coming quarters."

In a survey of 35 economists and experts conducted by Finder before today's RBA meeting, 8% of respondents said that they were expecting a rate cut in December while 34% were anticipating a reduction in February.

"Unless something unprecedented happens, we're now looking at 2026 for the next rate adjustment," says Graham Cooke, Finder's head of consumer research.

"If inflation eases, we could see a cut early next year. Until then, homeowners will need to look to other lenders for a better deal."

The RBA Monetary Policy Board will convene again on December 8 before delivering its final cash rate decision of the year on December 9.

CHOICE continues to support low income Australians who've been hit by high bank fees.

Earlier this year, Money reported on a petition launched by CHOICE calling on the Commonwealth Bank to refund excessive fees charged to low income customers (those who rely on Centrelink payments).

It follows two reports from money watchdog ASIC, which found millions of low income earners were being stung by high bank fees.

That's despite banks being required to help these customers access basic, no or low-fee accounts.

Following ASIC's first report, which focused on Indigenous Australians, CommBank handed over around $25 million in "goodwill payments" to approximately 87,000 accounts.

The practice of excessive fees was widespread

A second ASIC review found the practice of hitting low income earners with high fees was not only widespread across a number of banks, it also extended well beyond Indigenous customers.

As a result of the expose, ASIC reported in July 2025 that the banks involved have agreed to refund more than $93 million.

But not the Commonwealth Bank.

The goliath of Australian banking, which reported a record $10.1 billion profit in 2024-25, is refusing to repay the $270 million it pocketed in high fees from low income earners between 2019 and 2024.

The bank's refusal to budge is getting under the skin of plenty of Australians.

A national poll by CHOICE found 9 in 10 (88%) people think the Commonwealth Bank should refund the fees it charged to low-income customers, who were eligible for low or no fee accounts.

CommBank's view - customers knew about the fees

It's not as though CommBank doesn't have the cash to refund the fees.

The bank's latest annual report shows it is sitting on an eye-watering $49.6 billion in notes and coins.

A CBA spokesperson explains the bank's position, saying, "The concession customer group is a diverse cohort, including customers with varying levels of income, savings and home ownership.

"The fees ASIC references were disclosed to customers, incurred based on their individual use of their accounts, and charged in accordance with their terms and conditions."

CommBank adds that it contacts eligible concession customers annually to let them know about the availability of the bank's Streamline Basic account, which charges zero monthly, overdraft or access fees to concession card holders.

From there it's up to each customer to decide if they would like to switch products.

But CHOICE isn't buying it.

What CHOICE says - it doesn't pass the pub test

Morgan Campbell, Head of Policy at CHOICE, says, "Australians know bad bank behaviour when they see it.

"CommBank wasn't the only big bank keeping people in accounts they shouldn't have been in, but they're the only ones who have point blank refused to put it right."

Cambell adds, "These were unfair fees, they should never have been charged. CommBank needs to do the decent thing and refund them. By continuing to dig in, they're thumbing their nose at ASIC, their customers, and public opinion."

Bettina Cooper, Senior Financial Counselling and Strategy Lead at Mob Strong Debt Help, says, "Penny pinching on account fees received from low income people doing it tough in a cost-of-living crisis while making super profits is not great optics. Particularly when your rivals are stepping up and doing the right thing and returning fees, some with interest."

What Australians think - and a lesson to be learned

To date, over 21,000 people have signed the CHOICE petition calling on CommBank CEO Matt Comyn to refund the excessive fees.

If you're interested, you can add your name by heading to the CHOICE website.

CommBank hasn't been entirely inflexible. It has "temporarily paused certain fees" including overdrawn and monthly account keeping fees for eligible concession customers.

The bank's spokesperson adds, "Where we consider customers have incurred unusually high fees, we will consider goodwill adjustments where appropriate."

While CHOICE will continue to champion fair banking for all, there is a clear lesson to be learned from the whole sorry saga.

Always read the fine print of any financial product.

Even something as simple as an everyday bank account can be surprisingly expensive if you aren't 100% clear on what you're signing up for.

These are experiences that Sarah Megginson, a personal finance expert at comparison website Finder, has taken herself over the past decade, thanks to a variety of rewards credit cards.

"Personally, I love rewards cards. I've used them for over 10 years and I've had huge perks and benefits.

"I haven't paid for travel insurance for 10 years. I've flown first class to New York and business class to Los Angeles, and I've had lots of trips to Fiji and New Zealand - all covered on points.

"So I've had heaps of value from them, but at the same time, I've worked hard to make sure I'm taking advantage of bonus points offers. I shift credit cards every 18 months and I pay off my balance in full each month. It doesn't come for free and it doesn't come without work."

Who pays for rewards points?

As Megginson implies, there are trade-offs. Rewards card perks such as frequent flyer points and insurances aren't a product of the generosity of credit card companies.

Rewards credit cards generally come with an annual cost. Cards featuring decent bonus point offers and ongoing points earning rates, plus some additional perks, are likely to have an annual fee of at least $150, but more commonly it's going to be in the $250 to $400 range or even higher.

Then there are other potential costs such as surcharges, international transaction fees and interest payments that card users can end up paying along the way.

When it comes down to it, there's a lot to weigh up when assessing the potential value of a card. This has arguably been made harder in recent years as a result of tweaks to the points and perks being offered by rewards credit card providers, as well as changes to adjacent frequent flyer schemes.

How are rewards points earned?

Whether it's through a supermarket loyalty scheme or a frequent flyer program, it's fair to say that many Australians love accumulating reward points.

According to research conducted by Finder in 2022, earning rewards points was the second major motivator for Australians to take out a credit card behind having one for emergencies.

There are two main ways that rewards cardholders can earn points.

The first is by making day-to-day purchases on which they receive a set points-earning rate.

The second is through one-off bonus points offers that are activated once a spending target has been hit in a set timeframe. These can be as high as 100,000 or more Qantas Points, Velocity Points or bank-specific reward scheme points.

Why are points getting harder to accumulate?

Earning rates and bonus point offers haven't changed dramatically in size in recent years but, according to Megginson, in many cases, bonus point offers have become harder to get.

"In the past 12 to 18 months, we've seen a shift with the way the points are offered. In the past, you might have been able to get 100,000 bonus points, if you spent $3000 in the first 60 days.

"Now that offer will have shifted to be 70,000 bonus points up front, then another 30,000 points in 12 months once you have clicked over into your second year and paid your second annual fee."

Megginson believes that the move is a matter of banks trying to retain their customers for longer, but she also has a hunch that they're also targeting so-called churners.

"Credit card providers have recognised that there is a subset of people who churn through cards and aren't going to be loyal for five, six or seven years.

"Some people will just hold a card for 12 or 18 months to get the bonus points before moving on. Some will even get the points after three months then cancel it, which can be a bit riskier for your credit profile."

Going forward, Megginson says there's every chance that card providers will move to stagger bonus point offers even further by reducing the upfront bonus and spreading further bonus points out over multiple years.

What other credit card perks are disappearing?

Points are clearly a major drawcard for cardholders, but there's another side to rewards and premium credit cards: additional benefits.

These, of course, differ from card to card. But it's not uncommon for cards to come with various types of insurance (travel, purchase protection, extended warranty and so on) as well as cashback offers, travel 
or flight credits and airport lounge passes.

Unfortunately for cardholders, a number of banks have started paring back these additional perks and benefits.

"We're starting to see some cards remove benefits," says Megginson.

"And this isn't just one or two providers making small changes - we're seeing a number of providers tweaking their offerings."

"One of the recent examples is NAB. They're actually removing international and domestic travel insurance and rental car excess insurance from six of their credit cards in May next year.  NAB is not alone. BOQ, Citi and Suncorp Bank are among the other card providers phasing out travel insurance and rental car excess insurance on certain rewards cards from May 2026.

And beyond insurance perks, American Express recently removed the two annual passes to its Centurion Lounges at Sydney and Melbourne airports for holders of its Velocity Platinum Card, while also increasing the annual fee from $375 to $440.

"I think what these changes demonstrate is that now, if you want to take out a rewards card, you've really got to look at the fine print, because they all have different policies," says Megginson.

How are frequent flyer programs changing?

Credit card providers aren't the only ones who have been tweaking their offers. Both Virgin and Qantas have rolled out extensive changes to their frequent flyer programs in recent months - changes that are relevant to many rewards cardholders who earn Qantas Points and Velocity Points.

"Virgin made two broad changes back in January," says Steve Hui, chief executive of loyalty program concierge service iFLYflat.

"The first was the number of points needed to be redeemed in order to fly and the second related to how people can earn status credits.

"Points wise, Virgin increased the number of points needed to fly internationally and domestically on some routes. It [the increase] was around the 10%-15% mark, so it wasn't too drastic and they hadn't made any changes for quite a long time."

As Hui explains, Qantas has also increased the number of Qantas Points needed for many rewards seat flights.

"At the beginning of August, Qantas also made changes to their points program. I tend to focus on business class for our clients, so the change there was a 5% to 20% increase in the points redemption required for a business class seat - mostly 20%."

For example, the number of Qantas Points required for a Classic Reward economy seat from Melbourne to Brisbane has increased from 12,000 to 13,800, while a Classic Reward business seat from Sydney to Los Angeles has jumped from 108,400 to 130,100.

Could a surcharge ban change the rewards game?

In July, the Reserve Bank of Australia (RBA) released a consultation paper recommending that it would be in the public interest to ban surcharging on EFTPOS, Mastercard and Visa card payments.

At face value, removing surcharges would be a clear win for consumers given that the RBA estimates Australian debit and credit cardholders pay about $1.2 billion in surcharges each year, although there's an argument that these costs will just be passed on elsewhere.

In the same paper, the RBA also recommended that the existing cap on interchange fees - which are fees that the merchant's bank pays to the customer's bank on each card transaction - should be lowered. The RBA estimates that this would save businesses about $1.2 billion a year, though come as a $900 revenue hit to banks.

It's for this reason that some experts have argued that banks may look to offset any revenue they lose on interchange fees by reducing the value of their reward programs and additional credit card benefits or by increasing credit card fees.

How can you still earn rewards points?

Ultimately, any changes that devalue rewards points, make points harder to earn or remove additional card benefits are going to disadvantage rewards cardholders.

However, both Hui and Megginson believe that it's still possible for Australians to use rewards credit cards to their benefit. That said, it may pay to be savvy - especially when it comes to earning and redeeming points.

1. Avoid incurring unnecessary fees 

"Don't get a rewards credit card if you're not able to pay off the interest every month," says Megginson.

"That really goes for all credit cards, but if you can't afford to pay off the full balance each month to avoid paying interest, then you're going to offset the benefits you get."

2. Set a goal upfront 

"There are a few important things that most people don't look at before they start earning points. Number one is how many points they need," says Hui.

"If people know that it costs 159,000 points to fly one way to Europe in business class, then they have a target they can aim for and they can consider how to best earn those points."

3. Pay attention to earn rates

"Look really closely at the earn rate, which is how many points you get for every dollar you spend," Megginson says.

"I got my husband a card last year and I didn't pay attention to the earn rate which was 0.5 points per dollar. So, we didn't earn anywhere near as much as we could have if we were with a card that was 1 point per dollar."

4. Be mindful of where you spend   

"Make sure you get a card that aligns with your spending," says Megginson.

"For instance, if you run a business and you're making payments to the ATO, with most cards you'll earn a reduced rate or won't earn any points.

"But there are certain cards that do give you points for those kind of payments to government agencies, which can be really profitable."

5. Redeem your points strategically 

"Using points to fly business class is where you get the best sweet spot in terms of financial value and, in my view, satisfaction," says Hui.

"There's two ways to do this. In my view, booking a business class seat through Classic Rewards with Qantas or a Reward Seat with Virgin are good value.

"You can also use points to upgrade. This can also be good, but you don't determine upgrades - the airline does. It's out of your hands. So that's a big distinction."

For Australians with a mortgage or money in savings, the decision means that their interest rates are likely to remain relatively stable until at least November, when the Board meets next.

Today's decision to hold rates had been widely anticipated by experts after the release of the August Consumer Price Index (CPI) last week which came in higher than many were expecting.

In its post-meeting statement, the Board made reference to this uptick, noting that inflation in the September quarter may be higher than initially anticipated.

"With signs that private demand is recovering, indications that inflation may be persistent in some areas and labour market conditions overall remaining stable, the Board decided that it was appropriate to maintain the cash rate at its current level at this meeting."

Is the cutting cycle nearing an end?

Looking ahead, the major question in the air is whether or not the central bank has any more cuts to make during this rate cycle.

Two in three experts and economists surveyed by comparison website Finder before today's meeting said that they were expecting one more cut from the RBA at its November meeting.

That sentiment is shared by major bank economists at ANZ, CommBank and Westpac. Interestingly, NAB recently changed its position and now expects the RBA to hold rates in November.

Belinda Allen, the head of Australian economics at CommBank, noted in a research update published last Friday that a November rate cut is by no means a sure-thing though.

"At this stage we do expect a 25bp rate cut in November but the outcome of the meeting is not a done deal.

"Instead, it will be highly dependent on the Q3 CPI outcome, with an acceleration in the trimmed mean CPI from 2.7% per year in annual terms making a rate cut a tough ask. The labour market data will also be important to watch."

Conveniently, that quarterly CPI update will be released by the Australian Bureau of Statistics on October 29, just days before the next RBA monetary policy meeting on November 3 and 4.

The misconduct relates to five separate matters spanning the retail and institutional businesses.

The lion's share of the civil penalty relates to ANZ admitting it acted unconscionably and misled the government, as well as failing to meet its AFSL obligations when it managed the 10-year treasury bond deal and produced inaccurate reporting.

For this portion of the fine, ANZ will pay $125 million, split between its role as duration manager in executing the deal ($85 million) and for submitting inaccurate monthly secondary bond turnover data ($40 million).

On April 19, 2023, ANZ was mandated to help the government's sovereign debt management agency, the Australian Office of Financial Management (AOFM), deliver a $14 billion bond issuance.

Proceeds raised were to fund services such as health, social welfare, education, infrastructure and defence.

"Instead of trading gradually throughout the day to limit market impact, ANZ sold a significant volume of 10-year Australian bond futures around the time of pricing, which placed undue downward price pressure on the bond price," ASIC said.

"ANZ knew its trading could expose its client to significant risk of harm, but did not disclose to its client that ANZ still had significant volumes to sell before pricin,g nor provide its client an opportunity to consult with ANZ about delaying pricing."

Consequently, this denied the government an opportunity to protect itself and the public interest and that it was "relying on ANZ's expertise and professionalism".

When the government began asking questions, it saw that reports ANZ produced were misleading or deceptive.

ASIC also alleges ANZ misled the government about its trading turnover, which helps the government select dealers for bond issuances, for nearly two years.

"ANZ's inflated figures made it appear more active than it was and occurred despite internal concerns about the accuracy of the data and awareness that the figures could influence future appointments on bond issuances," ASIC said.

In response, ANZ said that ASIC has not alleged the bank engaged in market manipulation or over-hedging.

"All trading undertaken by ANZ as a duration manager was to hedge the risk borne by it in connection with the role on this transaction," the bank said.

"It is in ANZ's view that no loss was caused to the Commonwealth from its trading as a duration manager. However, given ANZ could have executed its role as a duration manager with better communication, ANZ has offered to pay the AOFM the revenue it earned as a goodwill gesture."

Several ANZ employees have either been suspended to terminated when the scandal came to light.

APRA has also jumped on ANZ, worried about its non-financial risk management practices and forcing it to increase its capital add-on to $750 million.

ASIC chair Joe Longo slammed the bank for "fundamental issues" in its risk and compliance culture that "require the board's and executives' urgent attention".

"In the bond trading case, ANZ was in a trusted position and its conduct had the potential to reduce the amount of funding available to the government. This funding is used to support critical services including Australia's health and education systems, affecting all Australians," he said.

"The total penalties across these matters are the largest announced by ASIC against one entity and reflect the seriousness and number of breaches of law, the vulnerable position that ANZ put its customers in and the repeated failures to rectify crucial issues."

Retail matters

ANZ will pay $40 million for dismissing 488 financial hardship concerns from customers, who communicated serious issues such as domestic violence and medical conditions, between May 2022 and September 2024.

In some cases, ANZ took more than two years to respond to customers and for others attempted to recover debts even when it did not respond to the hardship notices.

This includes issuing default and demand notices and sending out external debt collection agencies on customers.

ANZ ignored ASIC's concerns over its financial hardship processes in June 2023. Steps taken by ANZ to fix the issues did not work consistently, ASIC said, resulting in more that occurred up to September 2024.

ANZ has completed a remediation program for affected customers, which has included customer payments totalling $92,687 and corrections to customer.

Another $40 million in civil penalties relate to failing to pay bonus interest between July 2013 and January 2024.

ANZ promised to pay introductory bonus interest to customers who opened certain new accounts.

However, due to process deficiencies in ANZ's systems, ASIC alleges the bonus interest was not always applied. The bank has since remediated 194,487 accounts affected.

Separately, between August 2024 and March 2025, ANZ promoted on its website base variable and bonus fixed introductory interest rates for certain accounts which ASIC alleges were inaccurate.

The impacted 56,703 customers, resulting in ANZ failing to pay the correct amount of interest promised to 26,917 customers, with around $480,000 in interest not paid out. ANZ said it intends to remediate these customers.

Finally, ANZ will pay $35 million for failing to refund fees charged to thousands of deceased customers between July 2019 and June 2023.

"This is because its systems and processes could not identify which fees should be waived and/or refunded and whether any fees charged after a customer's death had been waived or refunded," ASIC said.

"ANZ did not respond to representatives of deceased estates in the required timeframe after notification of the customer's death."

ANZ still has not been unable to identify the total number of affected customers and the full extent of the impact is still unknown.

ASIC went on to say that ANZ's failures are "likely to have compounded the difficulties faced by loved ones dealing with the death of a family member or relative, as well as frustrating the probate process."

ANZ first identified the systems, controls and processes issue in 2022, and took over a year to resolve it.

In July 2024, ANZ was sanctioned for breaches of the Banking Code of Practice by the Banking Code Compliance Committee.

Some 18,900 customer accounts have been remediated $3.8 million for fees ANZ did not intend to charge and additional costs arising from delays.

On the retail business failures, newly appointed ANZ chief executive Nuno Matos said: "Unfortunately, some of our failings occurred when our customers were at their most vulnerable. For this we are deeply sorry, and we are making changes to better support when they need us most."

Matos will axe 3500 jobs across the bank, affecting 14% of the work force from its retail and technology divisions.

"This comes off the back of ANZ's credibility already being in question after a humiliating email botch-up under Nuno Matos' leadership revealed job cuts to staff once again before they had even been briefed," the Finance Sector Union said.

This article first appeared on Financial Standard

Some lenders are offering borrowers up to $4000 to refinance their mortgage to a lower rate. But is there a catch?

Australian homeowners with outstanding mortgages appear to be making the most of increased competition in the home loan market to score themselves a better deal.

Rather than being content with any rate reductions passed on by their lenders following multiple RBA rate cuts, more borrowers have been switching loans.

98,681 loans were refinanced by owner occupiers and investors in the June quarter, ABS lending data shows - up 18% on the same period in 2024.

"I think word is slowly filtering out that loyalty with lenders these days doesn't count," says Stephen Zeller, general manager of money at Compare the Market.

"Unless you're proactive and approach your lender for a discounted rate, you're unlikely to get any more than the RBA cut. And that's providing your lender passes on the full cut, which they don't always do.

"So, it's always good to review your rate every 12 months and, if your lender isn't going to come to the party, there's other options out there."

The prospect of a lower rate isn't the only sweetener being used by lenders to attract more business though. Some are even providing thousands of dollars in cashback.

What is mortgage cashback?

"The mechanics are pretty straightforward. Lenders offer a lump sum (usually a few thousand dollars) at settlement as an incentive to refinance," says mortgage broker and chief executive at Flint, Christian Stevens.

As Stevens notes, cashback deals tend to be offered to people who are willing to refinance their loans, though a handful of lenders are also currently providing offers on new loans too.

Whether it's a refinance or a brand-new loan, borrowers may need to jump through a few additional hoops to secure a cashback deal, on top of whatever's required to qualify for the loan itself.

"Beyond the normal refinancing criteria, lenders often set minimum loan sizes (commonly $250,000 to $500,000 or more), limits on maximum loan-to-value ratios (often capped at 80%), and sometimes even restrict the cashback to certain products," Stevens says.

"So, while the base requirements are the same as refinancing in general, there are typically additional eligibility rules to actually qualify for the cashback."

Which lenders are offering cashback?

The reality is that cashback deals aren't quite as plentiful as they were a few years ago. However, that's not to say that they aren't any offers on the market.

"Back in 2023, we had about 30 lenders offering cashback, but that's now filtered down to about 12 or 13 currently in market," Zeller says.

"It's the non-major lenders offering the bulk of the cashbacks right now. ANZ is the only major that has kept their offer, whereas the Commonwealth Bank, NAB and Westpac have withdrawn their ones.

"The highest in market at the moment is up to $4000 cashback with IMB Bank. That's up to 80% LVR, it's for refinance only and the loan amount will need to be $750,000 at a minimum."

Going forward, Zeller says that he wouldn't be surprised to see more cashback deals and other incentives appear as lenders look to offer a point of difference to attract new customers.

"Spring is usually the time when banks start to bring out additional offers to market.

"In the past, we've seen them waive lenders mortgage insurance, regardless of the LVR, and we've seen plenty of cashback offers before. We might even see some waive fees or reduce them substantially.

"And I've got no doubt that we'll continue to see more special rates come in as we move along. With the RBA expected to reduce one more time this year, I think we'll see continued competition."

Is there a catch to cashback?

As tempting as the prospect of pocketing a few thousand dollars for switching loans may be, refinancers may benefit from doing a bit of due diligence before jumping in.

Stevens recommends that borrowers take a look at features beyond the cashback amount - like the interest rate and fees - which may prove more impactful from a cost perspective over the long run.

"The catch is that the 'best' deal for someone long term is often with a lender that isn't offering cashback," he says.

"In other words, you might get the upfront cash but end up paying more over time through a higher rate or less competitive product."

At the end of the day, Stevens says that cashback shouldn't be the deciding factor in opting for one loan over another.

"It can be a nice bonus if the right loan for your needs happens to come with it, but the focus should always be on finding the lender and structure that best fits your objectives."

It may not seem like it, but Australia is home to a diverse banking landscape. There's the Big Four, of course, but there are also international banks, customer-owned banks, regionally focused banks, digital banks and banks that cater to Australians in specific industries.

There are currently 83 authorised deposit-taking institutions (ADIs) operating in the country, according to the Australian Prudential Regulation Authority. That doesn't include subsidiaries; for instance, Bankwest is a subsidiary of the Commonwealth Bank.

There's no shortage of choice either, depending on what you want from your bank.

For many, choosing a bank will be a matter of cost. Specifically, how competitive the interest rates and fees are on products such as bank accounts, savings accounts and home loans.

What we want from our banks

When global public opinion and data company YouGov asked Australians, in 2021, what the most important factors were when choosing a financial company, having low or no fees was top of the list.

However, there's more to banking than the cost involved. The same survey revealed that people ranked safety and security as being almost as important as fees.

That's hardly surprising when you consider factors such as the adoption of digital banking and the ongoing prevalence of financial scams.

This desire for security is something that banks are well aware of. Michael Lawrence, chief executive of the Customer Owned Banking Association, says that the industry has been working collaboratively on initiatives like the Scam-Safe Accord and others to strengthen protections for customers.

"Australian banks are also currently rolling out the latest scam-fighting technology, Confirmation of Payee (CoP), a new name-matching service designed to protect customers from being tricked into sending money directly to scammers. The service is an added protection for consumers from redirection scams," he says.

Beyond fees and security, YouGov found that good customer service came in as the third highest consideration. What counts as 'good' service is going to differ, of course. After all, Australians interact with their banks in very different ways.

Some want to be able to walk into a branch and seek help in-person. Others will be more comfortable talking over the phone or accessing support through an online chat 
in their banking app.

"Many customers increasingly prefer digital platforms for day-to-day banking like transactions, but the human element remains important for more complex enquiries like mortgages or sensitive issues like financial abuse or scams," says Lawrence.

While there are broad similarities in the way in which banks are approaching issues such as scams, there are also plenty of differences. So how do Australian banks compare on other fundamentals beyond their fees and rates?

For anyone in the market for a new bank, it's likely to be a key question.

To showcase what's out there we have profiled 10 banks across three areas: customer service, innovation and security, and scam protection.

Given the depth of the market, we narrowed our focus to some of the largest retail banks - and one of the largest customer-owned banks - in the country based on the value of household deposits (bank accounts, savings accounts, etc.) they are holding.

But given the way banking is changing, we also included some up-and-coming digital players in the space.

Australia and New Zealand Banking Group

Founded: 1951  
Headquarters: Melbourne    
Classification: Major bank

Customer service 

Widely considered the fourth largest bank in the country, it will come as no surprise to learn that ANZ has an extensive customer service operation.

Customers who prefer to conduct their banking in-person can do so at one of nearly 390 ANZ branch locations across the country.

Those who are happy to talk over the phone can access support seven days a week for everyday banking needs, plus there are specialised support teams for First Nations customers.

People experiencing domestic violence or financial abuse also have a dedicated support team. Meanwhile, there's also 24/7 in-app support available via live chat through the ANZ and ANZ Plus apps.

Innovation

Launched in 2022, ANZ Plus is the bank's foray into digital banking.

Designed to appeal to Australians who prefer app-based banking, the platform offers both bank and savings accounts and has drawn in more than a million customers as of March.

ANZ Plus has many of the features you'd expect of a digital banking platform, including automatic spending categorisation, spending breakdowns and savings roundups, plus it can integrate with services like Cashrewards and Qantas Frequent Flyer.

It's also possible to book an appointment or chat in-app with an ANZ Plus Coach who can help users set up the platform to better understand their spending and saving habits.

Security and scam protection

ANZ customers can add an extra layer of protection when making payments by using tools like Voice ID (an authenticator that uses your voice) and ANZ Shield (a separate authentication app that generates one-time passcodes).

Those using the ANZ Plus app also have access to biometric login features (such as their fingerprint or face), as do those using the ANZ Plus web platform: ANZ recently become the first bank to adopt password-less, web-based banking.

More broadly, ANZ also has fraud detection and prevention technology called Falcon that is designed to analyse and identify suspicious transactions in customer accounts.

Commonwealth Bank of Australia 

Founded: 1911  
Headquarters: Sydney 
Classification: Major bank

Customer service 

Whether it's the number of customers the bank has or the value of household deposits on its books, the Commonwealth Bank is the country's largest bank on a number of metrics.

That includes bank branches. Commonwealth Bank has 659 branches and 1842 ATMs for customers who prefer to do their banking or access support in-person.

It also operates its call centres locally, which customers can ring up to receive support on everything from general enquiries to transaction disputes.

Customers can also chat with a bank representative online in NetBank or the CommBank app or, alternatively, seek answers to simple questions from chatbot CEBA.

Innovation

Commonwealth Bank has been at the forefront of banking innovation in recent years, developing one of the most feature-rich apps on the market.

One of the more novel features built into its app and NetBank is the Benefits finder, which is designed to help customers uncover any payments, rebates or concessions they may be eligible for, such as unclaimed money or energy rebates.

Another innovative step the bank has taken is building up a financial literacy offering through its Brighter hub. Included in that is the bank's Financial Fitness Program, which is available to anyone interested in learning the basics of money management, saving and investing.

Security and scam protection

Commonwealth Bank customers looking to beef up their security while banking online or via the app can use two-factor authentication and biometric logins.

The bank has also put a number of fraud prevention measures in place, such as NameCheck, which alerts customers if the payment details they've entered don't match their intended recipient.

And CallerCheck, which allows customers to verify whether a call they are receiving from Commonwealth Bank is legitimate.

More recently, it announced a new AI measure aimed at disrupting scammers, which involves deploying thousands of AI-powered bots programmed to engage scammers, take up their time and report intelligence back to the bank.

Heritage Bank 

Founded: 1981  
Headquarters: Toowoomba, Qld
Classification: Customer-owned bank

Customer service 

Already one of the largest customer-owned banks in Australia, Heritage Bank is becoming part of an even larger entity as a result of its merger with People's Choice Credit Union and its transition into People First Bank.

Like most players in the customer-owned space, community and customer service are key priorities for Heritage Bank.

To start with, customers can access in-person support and banking services at more than 40 branches in Queensland and NSW. Heritage Bank also operates a 24/7 contact centre in Queensland that customers can call with general enquiries, internet banking queries and scam reports.

There's also a live chat option on the Heritage Bank website, although there's no chat function within its mobile app.

Innovation

While the transition into People First Bank has come with a promise of enhanced digital capabilities and products, only time will tell what will come from the merger for Heritage customers.

The bank has embraced many of the digital innovations that have come up in the banking space in recent years.

Customers can set up a PayID with their mobile number or email and use it to make near-instant payments to other people or to set up a PayTo to make payments to businesses. Heritage bank has also given users the option of paying with their smartphones or smartwatches via Apple, Garmin, Google or Samsung Pay.

Security and scam protection 

Like a growing number of banks, Heritage Bank has a bank-wide approach to combating fraud and scams, including real-time detection and a dedicated fraud detection team tasked with flagging suspicious transactions and contacting affected customers.

Anyone who suspects that they've fallen victim to a scam or fraud can also contact the bank 24/7 for support.

In terms of security, Heritage mobile app users have the ability to set up device authentication, make use of biometric login options (face or fingerprint) and block or cancel their cards if they are lost, stolen or damaged.

Bendigo and Adelaide Bank

Founded: 2007 
Headquarters: Bendigo, Vic    
Classification: Large bank

Customer service 

Perhaps more so than any other bank, Bendigo Bank - officially Bendigo and Adelaide Bank - has a strong reputation for customer service. In fact, it was recently named Australia's Most Trusted Bank for the twelfth consecutive time in a nationwide poll conducted by Roy Morgan.

Practically speaking, customers can access banking services and support across a few mediums. Bendigo Bank has one of the most extensive branch networks, with 423 in operation - many of which are located in regional areas.

However, 10 branches are set to close in the coming months. Customers can also receive support over the phone seven days a week from a local operator (Bendigo's call centres are all based in Australia), although the bank doesn't have an in-app or online chat function.

Innovation

While customer support - particularly in-person support - is clearly a major priority, Bendigo has also been modernising its online platform and banking app, giving users access to features like real-time payments through the New Payments Platform and mobile payments via Apple, Google and Samsung Pay.

As we'll get into later, the real digital innovation powerhouse of the Bendigo family is subsidiary Up bank. Beyond digital innovations, Bendigo has been among the forerunners in sustainable lending. It's one of a small, but growing group of banks offering green loans for customers looking to finance electric and hybrid vehicles or energy-efficient home improvements.

Security and scam protection

Like many banks, Bendigo Bank app users are able to take control of the security of their accounts by enabling biometric logins (with a fingerprint or face scan), setting up transaction limits and locking their cards in-app if they are lost or stolen.

Multi-factor authentication can also be enabled (and is mandatory in some cases) when doing tasks like authenticating payments through web-based banking. Bendigo also has a dedicated fraud team tasked with monitoring customer accounts in real time, and should suspicious activity be detected, reaching out directly to customers.

Macquarie Bank

Founded: 1985 
Headquarters: Sydney   
Classification: Large bank

Customer service 

Macquarie Bank is widely regarded as the largest bank in Australia behind the Big Four. Although, there's a key difference between Macquarie and ANZ, CBA, NAB and Westpac: it's a digital-first bank.

That means that Macquarie is focused on its banking app and online banking platform which, unsurprisingly, is where it directs customers in need of assistance 
by encouraging them to make use of the online chat service (which is available on weekdays during business hours).

Those looking for additional support can also contact Macquarie via phone, but the bank no longer offers traditional in-person branch support or banking services such as cash and cheque deposits.

Innovation

One of the standout features of Macquarie's app and banking platform is the in-depth insights it can provide customers on their spending habits and financial position. That includes overviews of net wealth and cashflow, plus spending breakdowns based on broader categories and individual merchants.

There's even an in-built budgeting tool for those looking to gain more control over their finances.

Macquarie has also indicated that it's looking to use AI to deliver more insights and services in the future; for instance, giving customers the ability to fully automate the process of paying their bills.

Security and scam protection 

As you would expect from a digital-first bank, Macquarie's app and online banking platform are equipped with common online security and anti-scam measures, but the bank has taken things to another level with a few extra tools.

The first of these is the Macquarie Authenticator. A separate, multi-factor authentication app designed to allow users to accept or decline any transactions or account changes that may crop up.

The second is the Macquarie Password Monitor, which, as the name suggests, keeps an eye out online for any potential breach of a user's Macquarie ID or password and, if it detects a compromise, locks access to online banking.

ING Australia

Founded: 1999  
Headquarters: Sydney   
Classification: Large bank

Customer service 

A subsidiary of global financial giant ING Group, ING Australia has made considerable inroads into the local banking sector over the past two decades - especially with Australians who are happy to conduct their banking online.

That's because ING doesn't have any branches for customers wanting to deposit money or speak to someone face to face. Instead, ING offers phone support from its contact centre in Wyong, NSW, which is available on weekdays (8am-8pm) and weekends (9am-5pm) for general enquiries.

Customers can also get in touch with the bank via secure messaging through the ING app or internet banking portal.

Innovation

ING was one of the first banks to launch an automatic savings roundup tool that automatically sweeps money into a savings account every time a transaction is made with a card.

For example, if roundup is set to the nearest $1 and a purchase is made for $4.50 that transaction will be rounded up to $5 and 50 cents will be transferred into savings.

Since its initial release, ING has given users the option of funnelling roundups towards their home loans and more recently it launched an option whereby customers can nominate a charity that they want their roundups directed towards.

Security and scam protection 

ING app users have a few options when it comes to securing their cards and accounts.

For instance, if they suspect that their card details have been comprised or the card itself is lost or stolen, a temporary hold can be placed on the card in the app.

Customers can also choose between setting up a code, a fingerprint scan or a face scan to access the app. And if someone suspects that they've fallen victim to a scam or fraud, ING has a dedicated 24/7 scam hotline to contact.

National Australia Bank 

Founded: 1981    
Headquarters: Melbourne
Classification: Major bank

Customer service

As the country's third largest bank, it's natural that NAB delivers banking services and support in person, over the phone and online. It currently has 436 branches in operation for customers looking to do their banking in person, 210 of which are located in regional and rural areas.

In fact, NAB has pledged to keep all of its rural and regional branches open until July 2027, at the very least. NAB users can also conduct phone banking and seek over-the-phone support by calling through to one of its locally based call centres, or chat with a representative online via its app or internet banking platform.

Innovation

Related to customer service, one of NAB's more interesting innovations in recent years has been the roll out of its 'Customer Brain'.

Launched in 2023, Customer Brain is an AI-powered engine that draws on thousands of data points to facilitate simple, personalised interactions with customers in order to drive engagement and retention, and create better experiences.

For example, the Brain can nudge a customer whose term deposit is about to expire so that they roll it over or move funds elsewhere, or it can send a congratulatory message to a mortgage customer who has just paid off 50% of their loan.

Security and scam protection 

The NAB app supports biometric authentication via Face ID or fingerprint, plus both app and internet banking users have the option of registering for NAB's SMS Security feature, which can add another layer of protection when making transfers, updating personal details or adding new payees.

Speaking of which, NAB has recently launched a Confirmation of Payee feature aimed at helping prevent scams and fraud. It works by allowing customers to verify the name associated with a new payee's account before making a payment, ensuring that it matches.

Up

Founded: 2018    
Headquarters: Melbourne
Classification: Digital bank

Customer service 

In the seven years since its launch, Up has cemented itself as one of the leading digital banks in Australia, surpassing the one million customer mark in late 2024.

As an app-only bank, the range of support available to its customers isn't anything like that offered by more traditional banks.

Unlike the extensive network operated by its sister bank Bendigo, Up doesn't have any branches. Instead, the main way for Up customers to ask questions and get support is through the live chat function in the Up app (open 6am to 12am), though some over-the-phone support 
is also available.

Innovation 

One of Up's major appeals is its regular rollout of new app features. In fact, Up has a public roadmap (the Tree of Up) showcasing its products and tools in development.

There's no shortage of innovations to highlight, but one of the more interesting is Up's take on joint accounts called 2Up.

Unlike a more traditional approach to joint finances where everything is merged, Up allows users to maintain their existing personal accounts - which remain private - while also creating new joint transaction accounts (for shared expenses) or joint savings accounts (for savings goals).

Up is also able to clearly track and showcase who spends what.

Security and scam protection 

Among the various forms of protection on offer, Up has a few features designed to increase customer awareness and decrease the likelihood of falling victim to scams or fraud. For instance, Up applies dynamic payment limits each time a new payment is created.

These are based on previous transaction amounts and volumes, which means a large payment to a new payee will be treated differently to a smaller payment to a regular payee.

Customers will also receive real-time push notifications on their phones for all transactions (which include the price, vendor and available balance) to help users quickly spot suspicious activity.

U Bank 

Founded: 2008 
Headquarters: Sydney
Classification: Digital bank

Customer service

Ubank is a subsidiary of NAB and a self-described digital bank that provides accounts and services through its banking app and online banking platform. Given that, it won't come as a surprise to learn that Ubank is branchless.

While it has a self-service option called Ubank Chat in its app, Ubank doesn't offer person-to-person support through its app or online platform. Instead, customers looking for human support will need to contact Ubank over the phone.

Based in Sydney, the Ubank call centre is open between 8am and 7:30pm on weekdays and 8am and 5:30pm on weekends.

Innovation

Ubank has developed a stream of handy financial-management tools for its app users, including its Pay Cycle feature that can display income and expenses based on someone's pay cycle and its Bill Planner feature that can help track upcoming bills.

One particularly useful - although relatively rare - feature provided by Ubank is Connected Accounts.

In short, it allows users to link their accounts from more than 140 banks, super funds and investment platforms and have them displayed within the Ubank app to paint a better overall picture of their financial position.

Security and scam protection

Ubank provides its users with various options to safeguard their accounts including passkeys, which were introduced for app users last year.

In essence, passkeys can provide greater protection against phishing and scams compared with passwords because they are stored on the device and, by design, necessitate multi-factor authentication because they require users to enter a PIN, fingerprint or face scan as well.

Interestingly, the bank has made a pledge (which it calls the Ubank defence) to reimburse 100% of a customer's money if it is fraudulently taken from their account. However, customers can't have contributed to the loss, and they will need to have reported it to Ubank promptly.

Westpac 

Founded: 1982    
Headquarters: Sydney  
Classification: Major bank

Customer service 

Generally considered to be Australia's second-largest bank, Westpac is not lacking when it comes to support and access to banking services.

Westpac has a 24/7 online chat function in its app and online banking platform that customers can use to talk to Westpac representatives.

The bank also offers phone support for customers with general and product enquiries, plus it has a dedicated scam and fraud team and a remote Indigenous call centre that offers translation services in some languages.

Customers looking for assistance or to use services in person can make use of the 611 Westpac branches operating around the country.

Innovation

Westpac has put a lot of focus into building up its app with innovative features designed to help customers manage their money.

For example, the Tax organiser tool, which allows people to organise their tax-related transactions and find more deductions.

App users can select relevant expense areas (for example, investment-related expenses or charitable donations) and then the tool will analyse and collate any relevant transactions for users to review.

Another is the Savings Finder, which can automatically pull together a list of subscriptions and bills for users to look over and - potentially - identify services that can be cut back.

Security and scam protection 

As scams have become more prevalent in recent years, Westpac has brought in a number of features aimed at protecting customer payments.

For example, when someone goes to make a payment to an account deemed suspicious, Westpac SaferPay will raise a red flag and require them to run through a number of questions before they are able to proceed.

In a similar vein, Westpac Verify will alert customers if the account name of a new payee doesn't match up with the account details provided.

Finally, customers have the option of setting up Westpac Protect, which prevents certain transactions going through without the input of a one-off security code.

At the same time as banks have been rushing out to announce home loan rate reductions, a smaller number have started notifying savers that their savings rates are about to be slashed.

"We've seen 13 or so banks confirm that they're cutting savings rates so far. Some of the larger banks are Westpac, Macquarie Bank, Bank of Queensland and NAB," says Alison Banney, money expert at Finder.

"It's only been a week since the RBA rate cut and banks are often not as quick to confirm their savings cuts as they are for home loans, which is obviously better news to share. So we do expect to see more cuts come through in the next couple of weeks."

The latest round of rate cuts will add to those already imposed on savings accounts so far this year after cash rate reductions in February and May.

"At the beginning of the year in January the average savings rate was around 3.00%, but now it's closer to 2.50%," Banney says.

"Some accounts have been cut more than others, and some haven't had any cuts because they were lower to begin with, but we have seen a slow decline in savings rates."

Can savers benefit from switching accounts?

While savings rates have dropped across the board in recent months, not all savings accounts are made equal. According to Banney, there are a handful of banks offering up rates well above the average.

"There's such a difference now between the top of the market and the average. The best rates in the market are still closer to 5% - so much higher than the 2.50% average."

MOVE Bank, ING and RACQ Bank are among those with the highest ongoing bonus rates at present.

As Banney points out though, with the market still in flux after the rate cut, savers may want to wait for the dust to settle before rushing to switch.

"Look at the market and see what the other banks are doing in a couple of weeks' time, because you don't want to swap to an account just to have the bank cut its rate the day after you swap."

For those who are able to move their savings to an account with a more generous rate, the difference in interest can be substantial though.

"Finder data shows that the average savings balance is around $35,000," Banney says.

"So, assuming that's your balance, by switching to an account with 5.00% interest versus 2.50% you could make an extra $1,000 interest over the year.

"That's free money, so it definitely is worth it if you can meet the conditions."

Finding the right savings fit  

Earning a competitive rate is clearly important for those looking to maximise the return on their savings, but Banney says that being able to meet any account conditions is arguably even more important.

"For a lot of the accounts with the highest rates in the market, the base interest rate - which is what you get if you don't meet the conditions - is often zero. You will literally earn no interest."

"So, if you can't meet the conditions consistently every month, you're probably better off going for an account with a slightly lower rate. You'll still want it to be competitive, but where the conditions are easily met."

Given the hoops that some customers need to jump through to earn bonus rates, Banney says that an alternative could be opting for an account with a high base rate and no strings attached.

"There are a few really good options out there for people who don't want to meet any conditions. You might sacrifice a bit of interest compared to the top bonus offers, but they can make life easier.

"I mentioned Macquarie Bank before who have cut the ongoing rate on their savings account already, so it's now 4.25%.

"That's a little bit lower than the very top bonus rate offers, but the great thing about it is there's no conditions to meet - you just get that rate every month.

"There's a couple of accounts like that as well. Bank of Queensland have one which is 4.05% ongoing and AMP has just released a similar one as well."

Did you know your job could save you tens of thousands on a home loan?

Many banks now waive lenders mortgage insurance - often called LMI - for a wide range of professions.

LMI is a fee that usually applies when you have less than a 20% deposit, and it can add thousands of dollars to your upfront costs.

So, is your job on the list?

If you're a doctor, nurse, teacher, police officer, paramedic, engineer, lawyer, accountant, pharmacist, banker or magistrate, you might be in luck.

These roles are seen as low risk, with stable income and strong long-term prospects.

Some lenders also offer higher borrowing limits or better interest rates, though the deals vary.

If you're in one of these professions, it's worth checking - because your job might not just help you save for a deposit, it could make buying a home much more affordable.

The Commonwealth Bank (CBA) is facing growing public backlash over its refusal to repay $270 million in fees it charged to low-income customers between 2019 and 2024.

The fees included account-keeping, dishonour and overdraw charges - often applied to people receiving Centrelink payments or other government assistance.

An investigation by the corporate regulator ASIC found CBA had charged these fees to around 2.2 million low-income customers not covered by an earlier refund program.

Unlike other banks the regulator investigated, CBA says it does not intend to repay these customers.

What are the CBA fees and why are customers upset?

The fees in question were charged on high-fee transaction accounts, even though many of the affected customers were eligible for low- or no-fee alternatives.

Under the Banking Code of Practice, banks are required to identify low-income customers and promote basic, low-to-no fee accounts.

Consumer watchdog Choice has launched a petition calling on Australia's largest bank to refund the money.

"We're absolutely appalled by CBA's decision not to refund customers living on low incomes, while other major banks have committed to provide refunds to some customers," says Andy Kelly, Choice's deputy director of campaigns.

"These are some of the most vulnerable people and the least able to afford to line the bank's pockets. People are rightly outraged by yet another bank scandal that CBA is refusing to make right."

What was ASIC's banking fees investigation about?

2024: Initial refunds after Indigenous banking report

The controversy began in July 2024, when ASIC released Report 785: Better Banking for Indigenous Consumers.

It focused on four banks:

• Bendigo and Adelaide Bank
• ANZ
• Westpac (including its subsidiaries St George, BankSA and Bank of Melbourne)
• CBA (including Bankwest)

The report found First Nations customers on low incomes were being charged excessive fees on everyday accounts, even though they were eligible for cheaper options.

In response, the banks promised $28 million and move over 200,000 customers to low-fee accounts.

2025: Wider banking review reveals bigger problem

ASIC then expanded the review, publishing a second report in July 2025 called Better and Beyond. This time it looked at 21 banks and found a widespread pattern of low-income customers being left in the wrong accounts.

"Our latest work has seen the total amount of bank refunds increase to $93 million, and over one million customers moved into low-fee accounts, saving them an expected $50 million in future yearly fees," says ASIC Commissioner Alan Kirkland.

The new report revealed that four banks had repaid $33 million from the first investigation. This included $25 million from CBA to 90,000 First Nations concession account holders for fees incurred from July 2019.

However, the bank called it "goodwill payments" rather than an act of remediation for any wrongdoing.

After the 2025 Better and Beyond report, most banks agreed to collectively repay a further $60 million to over 770,000 customers and move 820,000 customers to low-fee accounts.

The report said the refunds have provided "tangible benefits" to people who were reliant on government concession payments.

For example, Charlotte an ANZ customer on a JobSeeker payment from the Mandurah region of Western Australia, will be refunded over $5200 by ANZ (equivalent to 13 weeks of JobSeeker payments), including over $4160 in accrued dishonour fees.

But CBA refused to participate in this broader round of remediation.

According to ASIC, CBA disclosed that between July 2019 and October 2024, it charged $270 million in fees to around 2.2 million low-income customers not covered in the 2024 report.

Why hasn't CBA refunded the fees this time?

CBA told ASIC it does not intend to repay the $270 million it charged to 2.2 million low-income customers outside the original Indigenous cohort.

The bank argues that it serves more remote and regional customers than any other financial institution, and that these customers were provided value through the accounts.

"CBA considers that low-income customers benefit from informal overdraw facilities attached to its high-fee accounts, on the basis that these facilities provide customers with financial autonomy and flexibility," it told the regulator.

What do consumer advocates say about CBA's stance?

Consumer groups say CBA is out of step with the rest of the banking industry.

The Australian Banking Association recently reported that transaction account service fees have dropped significantly - from 8% of bank income in 2004 to just 2% in 2024. Banks also saved customers over $500 million last year by proactively moving vulnerable customers to low- or no-fee accounts.

But the Financial Rights Legal Centre points out that CBA remains an "outlier".

"CBA has only committed to migrating people to nominal-fee accounts, but have delayed even this inferior move, waiting to see if the ACCC will force their hand to move low-income customers to a low-fee or no-fee account," the community legal centre said in a statement.

"During this extended wait, CBA have continued to profit from the most vulnerable, collecting account-keeping, dishonour and overdraw fees from vulnerable customers - another move that will bolster their bottom line."

Bettina Cooper, senior financial counselling and strategy lead at Mob Strong Debt Help, a free nationwide counselling service for First Nations people, says the move is appalling.

"CBA is still avoiding transitioning people to an equitable low-fee or no-fee account without fee harm to low-income people including First Nations people, of which a high number historically bank with them," says Cooper.

"Shame CBA, shame!"

Even ASIC's commissioner joined the criticism.

"The CBA's approach stands in stark contrast to those of the other banks, including ANZ, which has offered refunds of around $48 million," Commissioner Kirkland said at a press conference.

"It is very clear what is the right thing for CBA to do by its customers, and they've now got an opportunity to reflect on how they stand relative to other banks and do the right thing."

CBA flags $52 million remediation costs

In a statement to the ASX on August 5, CBA told shareholders it had set aside $52 million for "domestic customer remediation" during the six months to June 30, 2025.

The bank also disclosed:

• $45 million in restructuring costs related to Bankwest becoming a digital-only bank
• $33 million for customer remediation at its New Zealand arm, ASB Bank

It is understood that these remediation costs don't relate to any specific remediation program.

However, CBA did not explain what the $52 million covers.

CBA said these costs would be excluded from its underlying expense numbers to give shareholders a "transparent view" of operational performance.

The bank will release its financial-year results on August 13 and is currently under a media blackout. Because of this, CBA did not provide comment to Money's questions.

How to check if you're owed a refund - and sign the petition

While CBA remains silent, consumer anger is growing - though it is not the first time the bank drew the ire of its customers over fees.

More than 14,000 people have signed Choice's petition calling on CBA CEO Matt Comyn to refund the money.

"We've heard from a number of people who believe they've been charged excessive bank fees despite being on low incomes, and we continue to have people contact us," says Choice's Andy Kelly.

"Approximately 2.2 million people were charged excessive fees by CBA, so if you're on a low income and believe you were affected, we encourage you to call the bank and request a refund."

You can sign the petition at action.choice.com.au.

They also delve into the risks associated with AI, such as data breaches, and the importance of AI literacy and talent in the banking industry.

Sironi provides insights on how Australian banks can stay competitive, especially by focusing on the small and medium-sized enterprises (SME) market, and the need to adapt risk management practices to leverage AI effectively.

00:45 The evolution of banking with AI

04:08 AI and customer security risks

07:32 The rise of agentic AI in banking

10:12 How Australian banks can stay competitive with AI

15:27 Managing risk with AI

18:45 Future innovations and opportunities

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The couple already have one credit card - a card from one of the two institutions they do their banking with. Alex, who is a self-funded retiree, is the primary cardholder while Jennette, who is still working part-time, is the secondary cardholder.

But after attending a presentation by finance expert Noel Whittaker late last year, Alex realised that it might be difficult for Jennette to continue using their existing card if anything was to happen to him.

"Unfortunately Alex has a cancer diagnosis, so we're trying to get our affairs in order. We thought if he passes away, I won't be able to use the card anymore because it's in his name," Jennette says.

"So we had been made aware that it would be easier for me to get a credit card while I am still working - that once I cease work, it'll be almost impossible. And I'm looking at retiring in the next year or so."

As Alex explains, taking out a new card isn't about accumulating points or accessing card perks, it's about ensuring that Jennette has an additional layer of financial security.

"It's just another bit of what I call insurance - to make to make sure that we've got our bridges covered. And that's also one of the reasons why we bank with two different banks."

Credit card application ordeal

Rather than approaching the major bank they have their existing credit card with, the couple decided to set up an appointment with a lending specialist from their other bank - a smaller, regional bank.

The Wilsons have had a relationship with this bank for decades. In fact, Jennette herself has more than $250,000 in terms deposits with them.

What the pair hadn't banked on was just how arduous a process applying for a new card would be.

Though after the initial hour-and-a-half meeting with their loan officer in which Jennette handed over a dossier of financial information, things were looking promising.

The Wilsons were advised that Jennette would have more success applying for a $4000 limit rather than the $5000 she had initially requested, but otherwise, her application looked strong.

A few days later the bank reached out. They needed more details - and not just about Jennette.

"We had to supply them with details of my super, of my tax return. Then they asked Alex questions about his investment property and strata fees, but it's in his name - it's nothing to do with me."

At this stage the application is still being processed, but the Wilsons aren't particularly confident. Jennette suspects that one of the stumbling blocks is around her income.

"I think it's because I divulged to them that I will probably be retiring in the next year or so. I'm 69 and I'm not going to work forever, so I had to say yes, I won't have an income from a job.

"But I've got adequate income from term deposits and we can always go into pension phase on the super which is quite substantial. We're going to have plenty of income.

A common experience

The journey the Wilsons have been on is by no means unique. Money's very own Paul Clitheroe wrote about his own challenge last year when he attempted to apply for a new card with his existing bank.

Chris Grice, chief executive of National Seniors Australia, says that the advocacy group regularly hears from members - who are still working and retired - about their credit card challenges.

"You've got people who struggle to get approval at all, then there are others who find that topping up their credit limit becomes a challenge."

As Grice explains, another issue that can crop up is secondary cardholders who lose access to their cards after the death of their partners. The exact situation the Wilsons were preparing to avoid.

"Imagine a couple in their fifties. Let's say the credit application was done by the primary earner in the relationship. So the card is in their name, but their partner is on there as a secondary card holder.

"Everything is working well, but then something happens to the primary cardholder where they're incapacitated or they pass away.

"Because the credit is not in the secondary cardholders' name - and at this point they might be older and in a retirement phase where they don't have that capacity to demonstrate income from a credit perspective - they could become ineligible."

An issue of income

As Jennette Wilson suspects with her own application, one of the main parts of the challenge for retirees and pre-retirees when it comes to credit cards is the way in which lenders view income.

Income is obviously a key component during any credit application, credit cards included. After all, it's in the best interest of lenders to ensure that their customers can pay back the money they borrow.

That's one part of it. Under responsible lending laws, lenders are obliged to make sure that the credit they offer to customers is affordable and won't end up leading them into financial hardship.

In the case of credit cards, a lender will need to ensure that an applicant can repay their entire credit limit within a three-year period.

To repay that, the applicant may need to demonstrate that they have a regular source of income which, as Grice notes, doesn't necessarily include income generated by assets or from superannuation.

"You might have somebody with superannuation and assets tucked away who might be considered to be moderately wealthy based on what they have on paper.

"But this isn't liquid and they don't have that income on a regular basis. Although some banks will view an account-based pension more favourably - they'll treat it closer to a salary."

How credit cards can be useful in retirement

Grice says that while he understands the position that banks are in to follow the rules, it's little solace for retirees who feel disadvantaged by the rigidity of the system - where even those who are relatively well-off can struggle to access credit.

And though having a credit card may be viewed as a luxury to some, he argues that, in some cases, it's a necessity of modern life.

"Take travel. A lot of businesses no longer accept cash and cheques and in some cases they won't even accept a debit card because they want to take an imprint of a credit card. For example, a hotel or car hire where they want to take a holding amount."

Credit cards can also prove an essential tool for people who stop working and run into what Grice describes as the "greater lumpiness in cash flow" in retirement.

"It's hard for people who have worked and managed their finances based on a certain income to know what the other side will look like in retirement and how they'll need to manage it differently.

"So a credit card can be that financial bridge to manage their cash flow between annuity payments or super draw downs, or to manage things like home insurance or private health insurance payments."

Is it worth applying for a credit card before retiring?

Whether it's applying for an entirely new credit card or adjusting the credit limit on an existing card, Grice says that these are actions worth considering before retirement.

"The most important things you can probably sort out are making a will, making sure you've got enduring power of attorney and an advance care directive.

"But then the fourth thing is having a plan around how you are going to pay for stuff. So thinking about whether a credit card is going to be part of that plan is a pretty important thing to do in advance of retirement."

As the Wilsons have discovered, even a bit of forward planning doesn't necessarily guarantee success or make applying for a card easy though.

Reflecting on their recent experience, both Jennette and Alex admit that they have been surprised by how tough the process has been.

"There are just so many hoops you have to jump through," Jennette says. "And even though we've got a long-term relationship and a substantial amount of money with the bank, they don't seem very willing."

"I know that banks have got obligations around knowing their customers and anti-money laundering stuff, but for a card with a $4000 limit and given our history with the bank, I was surprised," Alex says.

*Not their real names

Leading up to the meeting, the expectation from markets and many experts had been that the Board would bring interest rates down to 3.60% with a 25-basis-point cut.

This was based on the idea that the central bank would be influenced by the lower-than-anticipated inflation figures that came out of the Australian Bureau of Statistics' monthly Consumer Price Index (CPI) result for May, as well as relatively weak spending data.

That was not the case though. In a statement put out at the conclusion of today's meeting, the Board confirmed that it would continue to wait for more data.

"With the cash rate 50 basis points lower than five months ago and wider economic conditions evolving broadly as expected, the Board judged that it could wait for a little more information to confirm that inflation remains on track to reach 2.5% on a sustainable basis."

Interestingly, the decision was not unanimous. The post-meeting statement noted that the six Board members were in favour of the decision while three were against.

Cuts already fueling property market

While the RBA Board may have stayed their hand today, previous cuts in February and May appear to already be having an impact on the Australian property market.

After a period of decline over the turn of the year, home values have now risen for five consecutive months, according to research from Cotality.

The median national dwelling value increased by 0.6% in June alone thanks to price growth in most cities and regional parts of the country.

Tim Lawless, Cotality's research director, notes that the rebound has coincided with the recent decline in interest rates.

"The first rate cut in February was a clear turning point for housing value trends. An additional cut in May, and growing certainty of more cuts later in the year have further fuelled positive housing sentiment, pushing values higher."

Mathew Tiller, head of research at LJ Hooker, says that even though rates remained steady today, the previous cuts are likely to continue to have an impact on demand and prices.

"Listing volumes have remained tight, as many sellers continue to hold back, creating a supply and demand imbalance that is putting upward pressure on prices."

Is an August rate cut on the table?

The dust may have barely settled on today's decision, but attention will already be turning towards the Reserve Bank Board's next meeting on August 11 and 12.

Given that plenty of experts were anticipating cash rate cuts in both July and August in the lead up to this afternoon's Board meeting, it's safe to assume that today's rate hold will firm up the idea of an August cut even more in some minds.

Of course, a lot could happen in the intervening weeks.

For one, the Reserve Bank Board will have more economic data to digest, including the full June quarter CPI result (published on July 30) as well as fresh employment and spending figures.

• Find out how we chose the winners
• Order your copy of the July awards issue
• Check out more from the 2025 Consumer Finance Awards

For retirees who want certainty of income for the rest of their lives, this year's winner, Challenger, offers a suite of annuity products, including ones that pay a continuous lifetime income stream.

Longevity or annuity products are designed to ease the risk of running out of money and relying only on the age pension in old age.

They particularly suit people who are concerned about market volatility, inflation and cost-of-living pressures. Challenger's most popular annuity is Challenger's Liquid Lifetime annuity with an indexation option that keeps up with inflation.

Yet 57% of Australians aged between 50 and 75 are unaware that there are investment options that provide a lifetime income, according to UNSW research.

"As awareness grows, so too will the adoption of these solutions, particularly as more Australians seek stability and security in retirement," says Mandy Mannix, chief executive, customer at Challenger.

Superannuation funds are increasingly offering retirement income products such as annuities. For example, TelstraSuper and NGS include Challenger's annuities.

Over time annuities have become more innovative, offering features such as indexation, death benefits and withdrawals for a fee. Higher interest rates have boosted returns for annuities so that retirees can lock in a healthy rate.

Challenger customers generally structure their retirement income by combining the guaranteed income from an annuity with the flexibility of an account-based pension from their superannuation fund, says Mannix.

"This approach ensures they have stable income while still allowing for the growth of their assets and flexibility in accessing funds if necessary. Research consistently shows that this combination offers retirees the best of both worlds: the security of guaranteed income and the potential for growth," she says.

National Seniors Australia research from 2021 highlighted that some people were worried about future health and aged care costs. "They attempt to manage this by reducing spending, but indications to date are that they are not spending what they can afford," says Mannix.

"Retirees may want quick access to their funds for reasons like travel, home renovations or helping family members. While annuities provide steady income for life, having other flexible savings or investments can help retirees manage these occasional needs without affecting their guaranteed income."

For retirees who want the option of accessing their money from the annuity for an unexpected event, Mannix says Challenger's Liquid Lifetime annuity offers a long withdrawal period based on the individual's life expectancy, allowing for a lump sum if absolutely necessary."

"It's important to remember that the annuity is designed to provide income throughout retirement, and accessing funds from flexible investments outside the annuity is generally a better way to manage unexpected expenses without affecting the guaranteed income," says Mannix.

Why they won

A developed range of income stream products including guaranteed income for life annuities to give retirees a steady income for their lifetime.

Top products

Indexed lifetime income, deferred lifetime and market-linked annuities

• Find out how we chose the winners
• Order your copy of the July awards issue
• Check out more from the 2025 Consumer Finance Awards

Margin loans give investors easy access to funds to enable them to react quickly to opportunities.

This is especially handy with opportunities that have deadlines, think IPOs, capital raisings, share purchase plans or rights issues. If you must decide what to sell before you can take advantage of opportunities, you can miss out or make costly mistakes because of time pressure.

Margin loans can certainly help you make money but if they're not used with care, they can also amplify losses.

NAB is the winner of this year's Margin Lender of the Year award and its website reflects the importance of customers who are using a margin loan to closely monitor their facility on a regular basis and take prompt action if they are in a margin call position.

Investors can manage risks by gearing conservatively, diversifying and monitoring investments and paying interest regularly, according to the NAB website.

With NAB's new What-If calculator, customers can better understand the impact of market events, individual price fluctuations, loan balance and portfolio changes.

The NAB Margin Loan gives you access to a broad range of investment options on the ASX and international bourses including securities, exchange traded funds (ETFs), managed funds, and hybrids. Indeed, it covers more than 2500 approved investments and more than one thousand approved international equities.

It offers competitive fixed and variable rates, and you can apply to change from one to the other over part or all your loan when it suits you. Variable rates currently range from 9.25% for more than $1 million to 9.75% for less than $250,000. A full rundown is available at nab.com.au.

Your margin loan gives you access to a personal relationship manager who will look after your facility and assist you with any queries.

Margin loans can also provide some tax advantages, according to NAB. For example, you may be able to claim a tax deduction for the interest you pay on the loan and with a fixed rate loan you have the ability to pay your interest in advance for up to 12 months, allowing you to bring forward an expense if that suits your circumstances.

NAB's suite of investor loans includes the NAB Super Lever, a limited recourse margin loan for self-managed super funds (SMSF). With this facility NAB's recourse against the SMSF is limited to the acquired asset held as loan security, and maximums apply to the value of assets acquired.

Leveraged Equities, last year's winner, placed second. It has three margin lending products, Margin Loan, Investment Funds Multiplier, and the Direct Investment Loan.

CommSec was third, after coming in second last year. The CommSec Margin Lending Account enables you to invest in Australian shares, ETFs and managed funds.

Why they won

Competitively priced products enabling investors to access a wide range of investments.

Top products

NAB Margin Loan and NAB Super Lever, specifically designed for SMSFs.

• Find out how we chose the winners
• Order your copy of the July awards issue
• Check out more from the 2025 Consumer Finance Awards

Loans to property investors continue to be the fastest growing segment of the market with a 22% surge in 2024 compared with a 6% increase in owner-occupied loans.

Macquarie Bank, winner of the Investment Property Lender of the Year for 2025, says it offers a range of products to support property investors - who account for 36% of its loan portfolio - at every stage of their journey.

"Flexibility is at the heart of Macquarie's home loan offering," says Ben Perham, head of personal banking at Macquarie. "Our products are designed to meet the unique needs of individual investors."

For those looking for a simple loan structure, a Macquarie home loan provides a straightforward solution with competitive rates, according to Perham.

The Offset Home Loan option provides greater flexibility for more experienced investors or those with a bigger property portfolio.

"This loan allows customers to add up to 10 offset accounts per variable interest rate loan account. These accounts can be used to receive rental payments or save for property-related expenses such as strata or council rates. This flexibility helps investors reduce the amount of interest they pay, making their investment more efficient," says Perham.

"A customer who owns their home and wants to use their equity to purchase an investment property can set up an owner-occupied and investment loan under one contract and lending limit.

"This structure allows them to manage their money more efficiently, with the flexibility to benefit from both fixed and variable rates."

Macquarie is always working on new digital features to give customers better insights and control over their finances, says Perham.

"Features like smart budgeting tools, automatic expense categorisation and detailed transaction tagging make it easier to manage investment-related cashflow and prepare for tax time."

And the Macquarie banking app gives customers a 24/7 view of all their accounts including offset accounts, says Perham.

An investor using an offset account to receive rental income and pay property-related expenses will see this in one place.

"Our customers can generate individual interest statements for each loan, upload receipts and tag transactions for tax purposes, create and manage up to 10 offset accounts linked to each loan account, and track their net wealth and cashflow in real time."

In second place, Commonwealth Bank, last year's winner, offers investors tailored loans with features such as repayment holidays, multiple offset accounts, redraw, split loans, top-ups and flexible repayment options such as switching to interest only payments.

CommBank My Property in NetBank and the CommBank app provides personalised property insights, allowing you to track and manage your property portfolio, explore your options and plan.

NAB placed third. It offers resources and products for property investors, including tailored home loans, investment solutions and tools for property research.

Why they won

Flexible products to suit the unique needs of individual investors.

Top product

Offset Home Loan, allowing customers 10 offset accounts on a loan account.

• Find out how we chose the winners
• Order your copy of the July awards issue
• Check out more from the 2025 Consumer Finance Awards

It's always a leap of faith for Australians to hand their savings over to a financial institution, and our Money Minder award recognises this, combining scores across savings accounts, term deposits, customer service and digital experience to come up with a holistic winner for money minding.

This year's winner - for the second year in a row - is Macquarie Bank. There are good reasons behind the repeat performance.

By way of background, Australia is a nation of savers. Four out of five (80%) adults have a savings account and a majority choose high-interest options.

But if you have felt that your savings are not pulling their weight, you could be right. Account conditions are catching out savers. More than 70% of us face at least one restrictive condition on our savings account. That's seeing two-thirds of us fail to receive the maximum bonus interest rate each month.

It's a scary statistic at a time when households are battling a cost-of-living crunch.

Olivia McArdle, head of payments and deposits at Macquarie Bank, says, "Our goal has always been to provide a simple and seamless banking experience that maximises our customers' savings, without the strict conditions that have become common across other high interest savings accounts in the market."

She adds, "We've done away with all of that because savings shouldn't be hard work."

With Macquarie Bank there are no hoops to jump through or monthly requirements to meet, to earn a great rate. "This means our customers can sit back, watch their money grow without any hassle and get the best out of every dollar they put towards their savings goals," says McArdle.

As we move into a lower rate environment, it becomes increasingly important for savers to shop around for a competitive savings rate - and a savings account where they can realistically meet the conditions required to earn the top rate.

"At Macquarie Bank, we're committed to helping our customers make the most out of their money," says McArdle. "Both our transaction and savings accounts offer competitive variable interest rates without any restrictive conditions. So our customers can be confident they're receiving a great rate, regardless of how they choose to manage their money.

McAardle adds that for savers who often forget to check their rate or to switch accounts when high promotional interest rates roll off, "it's worth considering our no hoops or catches savings account, where they won't be penalised for moving their money around or not meeting certain criteria".

Macquarie Bank also offers customers a range of tools and options to help them grow and manage their money more effectively.

"Alongside our savings and transactions accounts, we offer term deposits with competitive fixed interest rates, which can help customers diversify their savings and lock in returns," says McArdle.

"Our award-winning mobile banking app and digital platform are designed to help Macquarie customers stay on top of their finances.

"From setting and tracking savings goals to accessing discounts through Macquarie Marketplace, our digital tools make it easier to save and spend smarter. Customers can tag transactions (for example, #tax) and generate reports to streamline organisation during tax time. Everything is designed to be intuitive, informative and tailored to support financial wellbeing."

Why they won

A suite of accounts that has done away with the restrictive terms and conditions needed to earn a decent return.

Top product

It all starts with a great rate of 2.50% on a Macquarie Bank transaction account.

• Find out how we chose the winners
• Order your copy of the July awards issue
• Check out more from the 2025 Consumer Finance Awards

Funny thing about credit cards. Recent years have seen a decline in the number of cards held by Australians - from a peak of almost 17 million in 2018 to around 12 million today.

Despite the drop in numbers, research by Finder reveals that almost one in three (29%) Australians says they rely on credit cards to manage their money.

This dependence is slightly skewed towards women, with 33% of women leaning on credit cards compared with 25% of their male counterparts.

While two in five (40%) cardholders applied for their credit card to have a source of emergency funding, 29% say they are chasing reward points, and 17% want a card to make a big purchase.

Clearly, credit cards still have a key role to play. It can be as simple as using our cards to book a table at the local restaurant or scoring a few freebies through reward points.

Whatever the case, the standard rule is to look for a card that suits your style of card use and repayment.

And Commonwealth Bank, which has won this category three times in a row, makes it easy to find the card that suits your needs.

With a six-strong line-up of credit cards, the Commonwealth Bank has something for everyone - including low-rate and low-fee cards, plus an option for those who don't want to pay card interest - ever.

The CommBank Neo Card has a purchase rate of 0%. Instead of paying interest, cardholders pay a monthly card fee ranging from $15 to $25 depending on the card's credit limit. As an extra plus for travellers the card comes with zero international transaction fees.

What if rewards are your main game?

CommBank has three credit cards that deliver rewards. The monthly card fee and rewards vary depending on the card's credit limit, although the interest-free days (44) and purchase rate (20.99%) are the same across all three options.

All three reward-based cards are linked to CommBank awards, although only the bank's Smart Awards credit card and Ultimate Awards credit card are linked to Qantas Frequent Flyer rewards.

What's interesting is that CommBank's Low Rate card (10.99% to 15.99% per annum) as well as its Low Fee card ($0 to $3 monthly) both offer cashback rewards - could be ideal if savings on airfares are not your main motivator.

Earn $75 each month when you spend $500 or more per month for the first six months on a new Low Rate credit card. Or earn $40 each month when you spend $500 or more per month for the first six months on a new Low Fee credit card.

If you're confused about which card is best suited to your needs, the Commonwealth Bank website features an online card selector. Answer up to four questions and it reveals the card that may suit your needs.

Why they won

A suite of credit cards offering everything from zero interest to extensive rewards.

Top product

CommBank Neo card - what's not to love about a credit card that charges zero interest?

• Find out how we chose the winners
• Order your copy of the July awards issue
• Check out more from the 2025 Consumer Finance Awards

There's something awe-inspiring about the sheer scale of Australia's residential property market. Valued at more than $11 trillion, the collective value of our homes dwarfs the nation's superannuation savings ($4.2 trillion), and even our $2.9 trillion sharemarket.

The vast honeypot of wealth tied up in homes hasn't gone unnoticed by the nation's banks. And in a market traditionally dominated by the big four banks, Macquarie is asserting its reputation as a key partner that home buyers can bank on to buy a place of their own.

From being runner up in 2023, Macquarie Bank has now won this award for two consecutive years, but this doesn't tell the full story.

Thumb through Macquarie Group's 2025 annual report, and you'll see Macquarie Bank's home loan portfolio grew by a whopping 19% over the past 12 months to be worth $141.7 billion.

It's the sort of growth many financial institutions can only dream of. Yet Macquarie Bank is taking a counterintuitive approach, keeping things simple, rather than complex, as a way of attracting home buyers.

Here's what is happening.

First up, Macquarie gives home buyers a choice of just two home loans - basic and offset. It's a bold move in a market where plenty of lenders offer far lengthier home loan menus.

Ben Perham, head of personal banking at Macquarie Bank, explains, "Our customers tell us they value the transparency and simplicity of our offering, giving them the confidence and control to manage their money in a way that best suits them."

Macquarie Bank also ticks the box for competitive rates and fast turnaround times, without scrimping on loan features.

"Customers can take advantage of flexible features like splitting their loan between fixed and variable rates, or linking up to 10 offset accounts to help manage cashflow and reduce the amount of interest on the variable portion of a loan," says Perham.

The availability of up to 10 offset accounts is worth a closer look. Perham says this allows Macquarie's home loan customers to save for various goals by using different offset accounts as dedicated savings buckets.

"By using offset accounts, customers have the flexibility to organise their savings with purpose, while also reducing the interest they pay on the variable portion of their loan," says Perham.

When you think about it, it's a simple and smart way to manage money. Combined with the bank's app, Macquarie's home loan customers have a clear view of their finances all in one place.

Macquarie Bank also prides itself on swift loan approval. Perham says: "Fast turnaround times are crucial for home buyers, as they enable timely decisions even in a competitive property market."

And if you're thinking of fixing, Perham says, "Our offering is resonating strongly with homeowners looking for peace of mind regarding repayments."

Why they won

Rapid loan turnarounds, digital loan management and multiple offsets for different goals.

Top product

Macquarie's Offset Home Loan lets borrowers have up to 10 offset accounts to tick off different goals.

• Find out how we chose the winners
• Order your copy of the July awards issue
• Check out more from the 2025 Consumer Finance Awards

Here's a surprising trend. Despite battling a cost of living crunch, Aussies are saving more, not less.

Data from bank regulator Australian Prudential Regulation Authority shows household deposits surged to $1.595 trillion in March 2025, up from $1.571 trillion at the end of 2024. That deserves a collective pat on the back.

But here's the crazy thing. More than one in 10 Australians either hangs onto their savings as hard coin or parks their spare cash in a non-interest earning transaction account. That's like letting valuable interest income slip through our fingers at a time when every dollar counts.

Impressive rates on personal savings are available, if you know where to look. That means now is the time to get your money working by parking it in a high-interest savings account to deliver strong returns and turbocharge its growth over time.

On the score of great returns for savers, ING has come up trumps - for the third year in a row - as the place of choice to grow savings.

What's up for grabs? ING offers several options that account holders can mix and match to maximise their returns and achieve different goals.

First up is ING's Savings Maximiser. It pays a rate of 5.40% (as at mid-May), which is one of the best in the market, according to comparison site Mozo.

You will need to pair the Savings Maximiser with ING's Orange Everyday transaction account, and from there deposit at least $1000 each month, make five eligible transactions, and grow the balance (excluding interest) to earn the full 5.40%. Otherwise the rate drops down to 0.05%.

The maximum 5.40% on ING's Savings Maximiser is only available on balances up to $100,000. This hasn't stopped plenty of Australians pocketing serious returns on their spare cash. Dina Kotsopoulos, head of daily banking at ING explains that in 2024, ING rewarded Savings Maximiser account holders with a total of $735 million in bonus interest.

If you're looking to invest more than $100,000, Kotsopoulos says ING's Savings Accelerator "could be used for those with higher balances". It pays up to 5.15% for the first four months on balances up to $500,000.  After that, a variable ongoing rate of up to 4.45% applies.

If dipping into savings is your weak spot, ING has yet another solution. Kotsopoulos points to ING's term deposits as an option "for those wanting to park and grow their savings without topping up their balance - and without the temptation to spend it".

You'll need at least $10,000 to get started with an ING term deposit. Choose from a generous menu of eight terms ranging from three months (rate of 4.35%) to two years (3.80%). There are zero monthly account fees so you can be confident every dollar is earning a return.

As rates ease, it's more important than ever to stay proactive, Kotsopoulos says.

"Look for accounts that reward consistent saving habits."

Why they won

Generous returns that reward savers for putting their spare cash to work.

Top product

Savings Maximiser - a great ongoing rate plus easy access to savings if needed.

• Find out how we chose the winners
• Order your copy of the July awards issue
• Check out more from the 2025 Consumer Finance Awards

When it comes to managing our money, more of us are ditching branches and going digital.

The Australian Banking Association says Australians are shifting to digital banking channels at "unprecedented rates" with 99.1% of banking interactions now being made online or via apps.

The rise of digital isn't just changing the way we bank. It's reshaping who we bank with.

As Roy Morgan puts it, more Australians are turning to newer digital banks, which have grown by "offering enticing deposit products, including competitive higher interest rates and lower fees".

Long story short, digital banks have plenty going for them. That's certainty the case with our winner - Up, the digital arm of Bendigo and Adelaide Bank.

Xavier Shay, chief executive of Up and chief digital officer of Bendigo Bank, explains the appeal.

"Up is redefining how the next generation of Australians relate to their money. We're not a traditional bank - we're a team of designers, technologists, and free thinkers building a platform that's safe, ethical and truly customer-first".

What Shay describes as the "tech-first DNA" of Up has allowed the bank to move fast, find efficiencies, scale quickly, and deliver the kind of digital experience consumers genuinely want. Already, more than one million Aussies have signed up to Up, primarily Gen Z and Millennials.

According to Shay, Up has always focused on helping the bank's customers - nicknamed 'Upsiders', to save smarter, spend better, and feel good about money.

"We've built a 100% mobile experience that feels more like an app you love to use than a banking chore you have to do," he says.

"From instant transaction notifications to lightning-fast onboarding and digital card provisioning with our Zap cards, Up helps people get set up and start banking in minutes."

What's most remarkable about Up is the breadth of features available on the app, such as Spendable Balance that lets customers know how much they can spend and still have money for regular bills.

As testimony to Up's streamlined systems, more than 80% of new customers choose Up based on a recommendation from someone they trust (usually a friend or relative). Shay says this reinforces that Up is "building something people genuinely believe in and share".

New customers can get started with an Up account in as little as a few minutes. And if a helping hand is needed, customers can connect straight to a real (Melbourne-based) human via in-app chat. No call queues, no AI bots.

"That seamless speed and experience is why Up is Australia's top-rated banking app, and how we've grown to over one million customers in just six years," says Shay. "It's proof that when digital banking feels intuitive and frictionless, people don't just use it - they recommend it."

Why they won

A truly digital experience that raises the bar for modern banking.

Top product 

Up Everyday - comes with handy app features such as Spendable Balance and round-ups.

• Find out how we chose the winners
• Order your copy of the July awards issue
• Check out more from the 2025 Consumer Finance Awards

Customer service tailored to meet each customer's individual needs is a key strength of Newcastle Permanent, winner of Bank of the Year - Customer Service.

"This could involve proactive contact when a customer is going through a rough patch, altering our processes to meet a customer's sensory needs, or just taking the time to show that we care," says Paul Juergens, chief distribution officer for NGM Group which encompasses the Newcastle Permanent and Greater Bank brands.

"Earlier this year one of our branches prevented a customer from being scammed out of $25,000 by highlighting the steps they should be taking when purchasing a car through a private sale," says Juergens as an example of individual service.

"Customer service officers took the time to sit down with the customer and not only ensured that she had done her own due diligence but helped her identify the discrepancies between what the seller told her and what the checks revealed.

"Taking a bit of extra time saved this customer a lot of grief and is the kind of outcome that we achieve by giving our customer-facing teams the flexibility they need to best serve their customers," says Juergens.

Being local is another key strength. "We were founded in Newcastle, NSW to serve regional communities and today, more than a century later, we are extraordinarily proud to remain true to that purpose," he says.

Customer service is about being embedded in our communities and connecting with all who live there, says Juergens, noting Newcastle Permanent is still headquartered in Newcastle.

"A customer won't just receive great service from us when dealing with their banking, they'll receive great service in their community when we back their local Nippers program, fund equipment for their football club, or provide volunteers to help at their community festivals. That is what sets us apart from our peers."

Having a contact centre that is fully located in regional NSW is also a key strength, says Juergens.

"This means that when a customer reaches out to our contact centre the person assisting them isn't just a voice on the end of the phone, they are also someone who lives and works in regional NSW, so they have a genuine understanding of the customer's needs."

Newcastle Permanent sees technology as a tool to support relationships rather than replace them, he says. "We use technology to make banking easier, faster and more secure - without losing the human connection."

Coming second Teachers Mutual Bank is 100% owned by its members and profits are reinvested to benefit members and communities. "We focus on people, planet and profit, aiming to deliver the best outcomes for customers," says the bank's website.

In third place Up is a digital-only bank targeting millennials with digital-first, highly personalised simple tech-enabled banking services.

Why they won

Locally based customer service tailored to support individual needs.

Top product

Real Deal Home Loan - a low-cost full-featured loan with no ongoing costs.

• Find out how we chose the winners
• Order your copy of the July awards issue
• Check out more from the 2025 Consumer Finance Awards

As the world of money becomes more complex, being able to tap into the right suite of banking products can eliminate a lot of hard work from the money-management challenge. That's where Ubank is setting a hot pace.

Having won this award for two consecutive years, Ubank - the digital arm of NAB, is clearly doing something right. Let's break it down.

Ubank customers can tap into three main accounts that each address the key areas of household financial activity. The Spend account provides clear visibility about how much you can spend. The Bills account provides a dedicated space to set aside money for regular household bills. Making up the trio, Ubank's Save account pays a healthy return to help dedicated savers get ahead.

The Spend, Save and Bills accounts have no fees and are backed by a feature-packed app.

Andrew Morrison, Ubank's chief customer and digital officer, puts Ubank's continued success in Money's Consumer Finance Awards down to "a focus on leveraging new technology to deliver great-value, fast and simple digital experiences to our customer".

"These innovations are built based on the preferences of our core demographic - many of whom are 18-35 years old, and we understand their needs deeply by talking to them directly and maintaining close relationships with them."

"Over the past two years, we've introduced several key products that our customers love," says Morrison. "These include intelligent money-management tools that provide data visualisation and real-time actionable insights to help customers make smarter decisions and build stronger financial futures."

Features such as Pay Cycle, for instance, help customers manage cashflow by showing the time until their next payday. "Our brand-new feature Split Income automates personal finances by allowing customers to divide their income across multiple Ubank accounts, making budgeting easier for younger Australians," says Morrison.

The new Chat feature enhances the overall customer experience by providing a convenient and efficient communication channel within the Ubank app.

Meanwhile, Ubank also provides competitive rates on deposits and home lending to help customers achieve their financial goals sooner. Better still, account holders can get a 360-degree view of their bank finances.

"Our connected accounts feature enables customers to see all their accounts in one place, and our partnerships and data sharing streamline the home loan onboarding process," says Morrison.

While Ubank doesn't have a branch network, customers can easily access support if it's needed.

As Morrison explains, "We continue to invest in phone-based support through our contact centre and banker support and engage customers using channels like TikTok and Instagram to build a community and raise brand awareness. Additionally, we create educational content and scam-awareness posts to further support our customers".

Why they won

Three linked accounts - Spend, Bills and Save address consumers' main pain points.

Top product

The Bills account sets aside money for expenses, so account holders can chill about bills.

• Find out how we chose the winners
• Order your copy of the July awards issue
• Check out more from the 2025 Consumer Finance Awards

It's probably fair to say that at some point (possibly several points) during our working lives, most of us have sighed and made a mental count of how long to go before we can down tools and retire for good.

But the idyllic images of silver-haired couples strolling along the beach don't always depict reality for Australia's 4.2 million retirees.

A survey by National Seniors Australia found fear of not having enough money to live a comfortable lifestyle is a major worry for Australians who are already retired or preparing for retirement. T

his highlights the need to make every dollar work hard in retirement - while you relax. This doesn't have to be a complicated process.

Your choice of bank can play a valuable role when it comes to getting more from your money once you hang up your work boots.

ING tops the leaderboard among retirees in 2025, having climbed from third place last year. What is ING doing that resonates so strongly with retirees?

One obvious answer is paying a high return on cash savings. Cash is a very safe investment for retirees. However, low risk typically goes hand in hand with low returns. But not so at ING.

Dina Kotsopoulos, head of daily banking at ING, says, "One of our savings products for over-55s is the Savings Accelerator, offering tiered interest rates - higher for balances over $150,000, with no monthly fees or deposit requirements."

Customers new to ING can open a Savings Accelerator account and score a variable rate up to 5.15% (as at mid-May 2025). This includes a special 0.70% for the first four months on balances of up to $500,000. After that, a variable rate up to 4.45% applies.

What makes ING's Savings Accelerator so attractive to retirees is the flexibility to access funds without monthly deposit requirements (which can be a challenge for retirees) or lock-in terms.

For retirees seeking the certainty of a fixed rate, Kotsopoulos says, "Our Personal Term Deposits are also popular among over-55s, as they guarantee a fixed interest rate for different timeframes for deposits of $10,000 or more."

Term deposits often hold a lot of appeal to retirees, who typically rely on fixed incomes, and who cannot afford to wear the market fluctuations we often see with sharemarkets.

Even better, ING term deposits don't come with ongoing fees that can eat into returns. With a suite of fixed terms to select from, retirees can mix and match the ideal combination of deposits to meet their personal cashflow needs.

For pre-retirees, ING also offers a superannuation option - Living Super, which features admin fees from as low as $5 per month, so more of your money goes towards building your retirement nest egg.

Why they won

Savings accounts that allow retirees to earn more from their money.

Top product 

Savings Accelerator - a high interest account without monthly deposit requirements.

• Find out how we chose the winners
• Order your copy of the July awards issue
• Check out more from the 2025 Consumer Finance Awards

Ask any 18- to 24-year-old about their key life goals and plenty will say travel. In fact, Nielsen data reveals almost three in five (58%) young Aussies are planning to travel abroad. That being the case, it's no surprise that ING tops the leaderboard as the preferred bank for young people for the third consecutive year.

One of the key drawcards of ING's Orange Everyday Account is the rebate on international transaction fees. That said, conditions apply to land this saving.

As a guide, every month you deposit $1000 or more to any personal ING account in your name (excluding Living Super and Orange One) and make at least five eligible ING card purchases, ING will rebate the international transaction fees when you pay with Orange Everyday.

It's not a bad deal and ING is going a step further, helping young Aussies stretch their money with a 1% cashback on utility bills. Eligible gas, electricity and water bill payments made from an Orange Everyday account using BPAY, direct debit or PayTo attract the cashback saving of up to $100 annually.

Dina Kotsopoulos, head of daily banking at ING, says these benefits are "striking a chord" with younger Australians.

She adds that additional features like no monthly fees, Everyday Round Up and an easy-to-use mobile app are just some of the ways ING tries to help young people stay a step ahead in life.

"We understand that the cost of living remains a major challenge, so we're focused on offering tools, support and competitive rates intended to help younger customers manage their finances more confidently," says Kotsopoulos. "In 2024, we helped alleviate the burden of utility bills by giving back $7.8 million to eligible customers through our 1% cashback offer.

For further cost-of-living support, customers who bundle their ING Orange Everyday account with an ING Savings Maximiser account can score a high ongoing bonus rate on their spare cash. At the time of writing, the bonus rate was a solid 5.35%, bringing total possible interest to a compelling 5.40%.

Of course, these financial perks are not limited to young people. We could all benefit from saving on international fees and utility bills or pocketing a healthy return on our savings. And ING doesn't discriminate based on the age of its customers.

Even so, if you're just starting out on life's financial journey, ING offers additional support including a free first-home buyer guide that can be downloaded from the bank's website (knowledge is power, right?). The bank also provides home loan pre-approval so you can bid at auction or make a confident offer on a dream home.

Why they won

Accounts that help young Aussies get more for their money through savings on key costs including international transaction fees.

Top product

Orange Everyday - what's not to love about an account that offers a $100 annual saving on utility bills?

• Find out how we chose the winners
• Order your copy of the July awards issue
• Check out more from the 2025 Consumer Finance Awards

If you're a borrower who can't tick all the boxes, you'll probably find the major banks don't really want to know you. Providing tailored solutions for customers with more complex needs is increasingly the role of non-bank lenders.

And La Trobe Financial leads the pack winning this award in 2025 for the sixth consecutive year.

"Our strength is our solutions-based approach to credit," says Cory Bannister, La Trobe Financial's chief lending officer. "Our focus is on solving complex financial problems in a friendly human way."

Bannister says that while many lenders are moving toward automatable and one-size-fits-all products, La Trobe's credit team emphasises understanding the individual story behind each application.

"With over 70 years of experience and $20 billion in assets under management, we aim to blend institutional scale with a boutique service mindset," he says.

"Whether you're self-employed and need flexible income verification, an investor seeking personalised solutions, a homeowner looking for a refinance option outside traditional banking criteria, a property developer seeking more favourable terms than a private lender - or a combination of all of the above- we have a ready-made solution that can be tailored to the specifics of your circumstances," says Bannister.

Several offerings have helped distinguish La Trobe from the pack.

"Our range of residential loans have the flexibility that the self-employed or borrowers with unique financial profiles desire," he says.

"On the construction front our product suite caters for every stage of a property developer's business cycle, from acquisition right through to completion and beyond.

"Other noteworthy mentions would be our ability to offer higher loan-to-value ratios on large loans compared to most non-banks, assisting the up-sizers, and our bridging loans curated to assist those downsizing, or simply moving homes in a very tightly held property market."

La Trobe Financial is constantly looking for new ways to serve people facing funding challenges and to provide the financial solutions they need, according to Bannister.

"We're working on a number of exciting initiatives that we look forward to announcing later this year, which includes larger loan sizes, more flexibility for property developers with targeted pre-construction products, and a bigger credit team to provide services to the market even faster."

Resimac placed second. It provides home loan solutions to a wide range of customers including the self-employed and contractors, as well as customers with previous credit impairments through its network of more than 12,000 broker partners.

It promises a responsive and user-friendly experience to its customers on both its online Customer Zone portal or via our its new Resimac mobile app.

In third place, Firstmac aims to provide simple, affordable, and competitive financial products. Its website emphasises that helping people is its mission and that it is staffed by real people, not robots.

Why they won

Products to suit real people with complex needs.

Top products

Construction loans tailored for those dreaming of building a new home.

• Find out how we chose the winners
• Order your copy of the July awards issue
• Check out more from the 2025 Consumer Finance Awards

Of the 2.6 million businesses operating in Australia, the vast majority (98%) are small and medium enterprises (SMEs).

Commonwealth Bank recognises the value of the small business community, and is delivering products and services that can help smaller enterprises reach their full potential.

Rebecca Warren, executive general manager of small business banking at Commonwealth Bank, says: "Small businesses are the lifeblood of the Australian economy and an integral part of our social fabric, so it's vital we continue to support this important sector."

To achieve that support, Warren says: "CommBank is focused on continually improving our products and services to help meet more needs, and provide value beyond traditional banking.

"We do this through continued digital innovation and enhancing our full-service offering."

As a guide to what's available, Commonwealth Bank is focused on product innovation that gives business customers more control and flexibility over their money.

"Our investments to accelerate lending decisions have given small businesses faster access to funds, helping support and grow this important sector," says Warren.

She notes that CommBank's BizExpress platform allows the bank to "approve loans in minutes", adding that "today, 70% of all loans to small businesses are funded through BizExpress".

Helping small businesses stay safe online is one of CommBank's highest priorities. "Our investments in scam and fraud prevention have seen losses more than halved," she says.

"Our partnership with the Council of Small Business of Australia and Telstra on the Cyber Wardens course also helps upskill Australian small businesses in cyber protection and scams awareness and has now received endorsement from the Federal government."

"We continue to differentiate our offering with initiatives including a free cashflow management course in partnership with the UNSW, a partnership with Smiling Mind, a not-for-profit mental health organisation to provide small business owners with access to mental wellbeing programs and extending the CommBank Yello rewards and benefits program to over 350,000 small businesses," says Warren.

CommBank offers a full suite of products and services to business including an online business savings account to help manage cashflow, as well as a Business Low Rate credit card with cashback benefits for eligible cardholders and an unsecured credit limit of up to $50,000.

For great value, CommBank also offers a CommBank Neo Business card with no interest fees and no late fees. A monthly fee of $12, $18 or $22 applies depending on your card limit. If you don't use the card and pay the total balance owing in full, you won't be charged the monthly fee. Spend data can be automatically shared with Xero or MYOB.

There's also plenty of financing support through CommBank's BetterBusiness Loan with rates from 7.85% and terms of up to 30 years.

"We strive to provide the best customer service experience in the channels that customers choose - whether that's online with our market-leading digital offering, over the phone with a dedicated Business Banking call centre or through our branch network - the largest in the country," Warren says.

"I'm proud of our teams who have achieved a record number of proactive contacts with our small business customers over the last year."

Why they won

Products catering to the needs of small businesses backed by cyber protection.

Top product

CommBank Neo Card - a new way to access credit without high interest charges.

• Find out how we chose the winners
• Order your copy of the July awards issue
• Check out more from the 2025 Consumer Finance Awards

Australians are spoilt for choice when it comes to banking. Consumers have almost 100 different banks to pick from. It makes taking out Money's Bank of the Year award no easy win - yet, Macquarie Bank has taken out this coveted award for the third consecutive year.

Ben Perham, head of personal banking at Macquarie, says, "We're thrilled to be named Bank of the Year for the third year in a row. It underlines for us that our leading digital banking offering continues to resonate with Australians."

Perham says, "At Macquarie, we are continuously looking for ways to simplify and enhance our customers' banking experience."

There is no doubt Macquarie Bank has taken a long, hard look at what Australians want from their bank accounts and aimed to match the main requirements.

"Our transaction and savings accounts have been designed to help our customers grow their savings effortlessly, offering great rates with no catches or hoops to jump through, such as monthly deposit conditions or transaction requirements," says Perham.

As the first Australian bank powered by a cloud-based core banking system, Macquarie has also unlocked faster processing speeds and a faster online account-opening experience. Customers can open an account online, or via Macquarie's mobile banking app, within minutes.

For many Australians, however, managing spare cash is just one side of the household finance equation. Getting great value on a home loan is also a key consideration.

"For our home loan customers, we prioritise clarity in rates and fees, ensuring that there are no hidden surprises," says Perham.

"Whether our customers prefer fixed rates for predictability, variable rates for flexibility, or offset accounts to reduce their interest payments, we offer a range of options to meet their needs."

Perham adds: "We know that households are closely monitoring rate changes, so to make the process simpler, we automatically adjust the minimum monthly mortgage repayments for our variable home loan customers using direct debit. This means when we make changes to our rates, there's no need to call or go online to request repayment changes."

With the rise of scams and fraud, Macquarie Bank understands that security is a top priority for customers.

Perham explains: "That's why we introduced Macquarie Authenticator, our market-leading digital security app." It sends detailed alerts directly to a customer's device, allowing them to approve account activity in real-time, 24/7.

The upshot, according to Perham is that "our customers can be confident that any request was initiated by them, and they can approve or deny the request in real-time". The response to Macquarie Authenticator has been overwhelmingly positive, says Perham, with more than one million Macquarie customers now using the app to verify more than one million collective actions on their accounts each month.

Why they won

Savings accounts with no strings attached and home loans that tick the box for value.

Top products

An interest-bearing everyday account, savings accounts with high, no-strings-attached rates, and the power of digital technology.

• Find out how we chose the winners
• Order your copy of the July awards issue
• Check out more from the 2025 Consumer Finance Awards

Many Australians view the relationship with their bank as a partnership. But is your financial institution pulling its weight on this score? That's where 'mutuals' - customer-owned banks, building societies and credit unions - are carving out an important niche in the market, giving back to members rather than focusing on returns to shareholders.

Talk to the team at this year's winner - Teachers Mutual Bank - and there is a real sense of excitement at being named Money's Customer-Owned Institution for 2025.

Reflecting on the win, Teachers Mutual Bank chief executive, Anthony Hughes, says, "I think what resonates most with our members is our incredible focus on delivering the best service and outcomes for them, each and every day."

He adds: "Yes, our great products and competitive rates matter. But I strongly believe our defining attribute is our incredible people, who are passionate about serving and helping our members every day."

Hughes regards this award as being recognition of "who we are as a bank - member-first, values driven, and committed to banking for good for those who do good."

In a competitive banking market, Teachers Mutual Bank takes pride in offering simple loan and savings products with great rates. But it goes a step further.

Every Teachers Mutual Bank home loan and deposit account opened in the past year was a certified Responsible Investment product. "That's something we're really proud of," says Hughes.

Teachers Mutual Bank isn't resting on its laurels. "Late last year we were the first customer-owned bank to roll out a new feature in our internet banking and mobile app to help protect our members from scams and prevent mistaken payments," says Hughes.

"Since then, we've helped save around $4.1 million of our members' money from potential financial loss. It's a great example of technology helping people."

Teachers Mutual Bank also offers member-focused financial education programs. "These initiatives go beyond banking," says Hughes. "They're about supporting our members at every stage of life. "We're continuing to evolve our benefits programs to reward our members beyond interest rates."

Exciting times lie ahead for Teachers Mutual Bank customers. The bank recently announced a proposed merger with Australian Mutual Bank.

The merger will create one of Australia's largest customer-owned banks with combined assets of more than $13 billion serving more than 300,000 members. The proposed merger is awaiting regulatory approval before being put to a member vote in 2026.

Hughes adds: "By coming together, we will combine our resources and financial strength to create a stronger bank. This will enhance our ability to deliver excellence in member service, exceptional value, great services and meaningful support for the vocations and communities that support us."

Why they won

Straightforward products backed by exceptional service that meets members' needs.

Top product

Where to start? A credit card rate of 7.90%, home loan rates beginning with a 5, and up to 4.0% on savings.

This highly-anticipated list reveals Australia's best banks, insurers and financial institutions for 2025.

These awards highlight the top-performing providers helping Australians save smarter, invest with confidence and manage their money effectively.

With everyday expenses on the rise, Money's trusted rankings give consumers a clear guide to the products that deliver real value.

Whether you're trying to build your savings, protect your assets or invest for the future, the Consumer Finance Awards can help you make informed decisions that support your financial wellbeing.

@moneymagaus And the winner is ... your wallet! Money's 2025 Consumer Finance Awards are here, the best banking, insurance and financial products to help you get ahead. #money #fintok #consumerfinanceawards #banks #insurance #awards #moneytok #financialliteracy #investing #shellhouse #skybar #julyissue ♬ Upbeat Anthemic Indie Sport Rock (50 sec) - dimmysad

Research and readers

To bring you this year's Consumer Finance Awards, Rainmaker Information worked with Money to develop a readership questionnaire to find out which banks our readers and followers used and how they rated them for products and features, customer service and more.

Rainmaker also worked with investment and insurance research specialists Plan For Life for the Longevity Cover Provider of the Year and Investment Bond Provider of the Year awards.

Order your copy of Consumer Finance Awards issue of Money

Bank of the Year: Macquarie Bank

The winner had the highest overall composite rating scores across products and features, customer service and digital experience. Only national full-service banks were eligible to win this premier award.

Customer-Owned Institution of the Year: Teachers Mutual Bank

Like Bank of the Year but only full-service customer-owned banks were eligible to win this premier award.

Business Bank of the Year: Commonwealth Bank

There is more to being a leading business bank than simply offering a good deal on business accounts and loans. This is why this year Rainmaker's methodology identified the leading national full-service business banks that offered the most comprehensive services across business accounts, loans, credit cards, term deposits, currency management, cyber-risk and fraud protection, point-of-sale and ecommerce, international transactions and merchant support.

Non-Bank Lender of the Year: La Trobe Financial

The winner was the non-bank lending institution judged by Rainmaker to score highest across seven core dimensions: product range, business strength, ability to raise lending capital, innovation, corporate transparency, loan quality and customer depth.

Bank of the Year - Young People: ING Bank

The banking provider that achieved the highest overall composite rating scores across products and features, customer service and digital experience from Money readers and followers aged 18 to 34 years.

Bank of the Year - Retirees: ING Bank

The banking provider that achieved the highest overall composite rating scores across products and features, customer service and digital experience from readers and followers aged 55 or older.

Bank of the Year - Product: Ubank

The banking provider that achieved the highest overall rating scores for products and features.

Bank of the Year - Customer Service: Newcastle Permanent

The banking provider that achieved the highest overall ratings for customer service.

Bank of the Year - Digital: Up

The banking provider that achieved the highest overall rating scores for digital experience.

Bank of the Year - Savers: ING Bank

The banking provider that achieved the highest overall composite rating scores across products and features, customer service and digital experience from Money readers and followers aged 35 to 54 years.

Home Lender of the Year: Macquarie Bank

The banking provider that achieved the highest overall composite rating scores from Money readers and followers for mortgage products and features, customer service and digital experience.

Credit Card Issuer of the Year: Commonwealth Bank

The banking provider that achieved the highest overall composite rating scores from Money readers and followers for credit card products and features, customer service and digital experience.

Money Minder of the Year: Macquarie Bank

The banking provider that achieved the highest overall composite rating scores from Money readers and followers for everyday savings accounts and term deposit products and features, customer service and digital experience.

Investment Property Lender of the Year: Macquarie Bank

The banking provider that achieved the highest overall composite rating scores from Money readers and followers for investment mortgage products and features, customer service and digital experience.

Margin Lender of the Year: NAB

The winner was judged by Rainmaker to achieve the highest score across core dimensions, spanning product and investment choice breadth, depth, research services, type of investment available, access to international markets and interest rates payable on loan products.

Longevity Cover Provider of the Year: Challenger

The winner was judged by Rainmaker and Plan For Life to be the best life insurance product designed to assist retirees in meeting the challenges of finances and longevity, meaning 'life expectancy', by providing flexible and reliable income-stream solutions.

Investment Bond Provider of the Year: Generation Life

The winner was judged by Rainmaker and Plan For Life to be the investment bond with the best financial and market strengths, product benefits, customer service, and support and training of financial advisers.

Insurer of the Year: Budget Direct

This category took into consideration how competitive were the home and contents and car insurance premium rates and holistic factors such as corporate strength, breadth of what they deliver and how they support customers, customer engagement and reliability in paying claims.

"Reverse mortgages can be an absolute disaster if used incorrectly, but in my opinion, they are incredibly valuable if used well," founder Paul Clitheroe wrote in Money.

"Obviously, the longer you leave getting one and the less you take out, the slower the growth in the size of your loan."

While you might already know the basics, others may not be so familiar. So, let's quickly discuss what a reverse mortgage is and its benefits.

What is a reverse mortgage? 

A reverse mortgage is a type of loan that allows older homeowners to borrow against the equity in their home.

These types of loans differ from standard mortgages (where you make monthly payments to a lender), a reverse mortgage provides you with funds, either as a lump sum, regular payments or a line of credit, while you continue living in your home.

The loan is repaid when the property is sold, the borrower moves into long-term care or passes away. Like any major financial decision, it's important to consider the long-term costs and impact on inheritance before proceeding.

How does a reverse mortgage work in Australia?  

We understand a reverse mortgage can seem complicated, but that doesn't mean it's not worth pursuing. To keep things simple, we've broken it down into four, digestible steps:

• Eligibility: You must be a homeowner (usually over the age of 60) and have built up significant home equity. 

• Loan amount: The amount you can borrow depends on your age, property value and lender criteria. In most cases, the older you are, the more you can borrow. 

• No regular repayments: Interest accrues over time and is added to the loan balance, meaning you don't have to make repayments while living in the home. 

• Loan repayment: The loan is repaid when the property is sold, often after the borrower moves into aged care or passes away. 

Key benefits of a reverse mortgage - why more older Australians are choosing them

Still on the fence about whether a reverse mortgage is the right thing to do for your finances? To help you make a decision, we've listed four key benefits of using a reverse mortgage in Australia:

• Access to home equity: This provides financial flexibility in retirement without needing to sell your home. These funds can also be drawn to cover other expenses, such as renovations or to clear other types of debt. 

• No regular repayments: Unlike a standard mortgage, you do not have to make monthly repayments with a reverse mortgage, which can reduce financial stress for retirees. 

• Stay in your home: A reverse mortgage means you can stay in your home while using its value for living expenses. For many older Australians, this removes the stress of having to move. 

• Flexible payment options: Opting for a reverse mortgage gives you the flexibility to choose between one lump sum payment, regular income stream or a line of credit. 

You can read more on the Moneysmart website. "This is a government site, not a sales pitch from a reverse mortgage company, so you will get unbiased information," Paul wrote.

Pensioners can contact the Department of Social Services and discuss the Home Equity Access Scheme, a government-backed reverse mortgage which offers up to 150% of the age pension as a fortnightly payment.

"This is exactly how a reverse mortgage should be structured. Frankly, they are just awful things if a large lump sum is taken out at a relatively early age from a lender who charges high interest. Compound interest works against you very badly if you have a large amount borrowed at high interest for many years.

"But most of us don't need a large lump sum; we want a regular amount to allow us to lead a better life, day to day. The great thing with small, regular amounts is that they don't build too quickly into a large amount."

Of course, deciding to pursue a reverse mortgage is only half the decision - the other half involves finding the right lender to assist you.

Reverse mortgage lenders in Australia - where to start  

While reverse mortgage lenders in Australia are not as common as traditional mortgage providers, they do exist, offering financial solutions tailored to retirees looking to unlock home equity. Major banks previously dominated the market, offering a range of reverse mortgages, but today, specialist lenders and some non-bank financial institutions are also major players in this space.

To ensure you get the best bang for your buck, it's essential to compare options and seek financial advice before signing up to a reverse mortgage.

Speaking with a mortgage broker or a financial advisor who specialises in this area of lending can help you decide whether a reverse mortgage aligns with your retirement goals and point you in the right direction when selecting the best reverse mortgage provider for your needs.

You should also consider getting independent advice from a solicitor, and then discussing your plans with your family.

Learn everything you need to know about reverse mortgages in Australia with Money

Make the right choice for your financial future with Money. Browse our learning hub today and pick up new tips and tricks about how you manage your money smarter.

About Money 

Money is Australia's top hub for all things personal finance. Whether you are looking to learn more about investment opportunities, growing your super balance or seeking tips and tricks for purchasing your first home, Money is the place to be. Since 1999, we have been assisting everyday Australians in making smarter, more aligned financial decisions and have proudly become the country's longest-running and most-read personal finance magazine.

We know not everyone is an expert in managing money and understanding complex financial jargon. At Money, we do financial education a little differently. Across our site, you'll find news and articles, comprehensive guides and reviews written in an easy-to-understand way. Our aim is to empower Australians to take control of their financial future - and that all starts with having the right knowledge.

The decision, which follows a pause in April, is the second rate cut since November 2020, continuing the RBA's easing cycle that began in February.

It comes as inflation eases within the RBA's target of 2%-3%, with the Consumer Price Index (CPI) rising 0.9% in the March quarter and 2.4% annually, according to the Australian Bureau of Statistics (ABS).

To understand how the RBA controls inflation through the cash rate, click here.

Economists saw it coming. A Finder survey showed 88% correctly tipped the cut, and the Commonwealth Bank even called it a 'done deal' before the announcement.

How much will you save?

For homeowners with a mortgage, the cut could mean real savings. On an average owner-occupier home loan of $659,920, a 25-basis point reduction could save $213 a month or $2553 a year if lenders pass it on in full.

And it might not stop there. Finder's survey found 73% of experts expect two or more rate cuts in the next 12 months. If another 50 basis points are cut, homeowners could save $420 a month and $5,044 a year on the average loan.

"Frankly, two cuts might not be enough to ease the spike in mortgage stress we've seen since May 2022. But it's a step in the right direction," says Graham Cooke, head of consumer research at Finder.

With thousands of dollars on the line for the average homeowner, Cooke says rate changes show the value of being on a lower rate, even if it is just a bit lower.

However, he says many could give themselves the equivalent of nearly two rate cuts right now simply by "getting on the front foot and switching".

Canstar.com.au shows there were around 35 lenders offering at least one variable rate under 5.75% - even before the rate cut.

"There is a 40-point difference between the average and lowest rate available."

Will your bank pass on the cut?

Of course, these savings depend on your lender. Canstar's analysis shows a $600,000 mortgage could see repayments fall by $91 per month - but only if banks pass on the cut.

Not all do it automatically. CBA NAB and ANZ customers must initiate a change to their direct debit payment for it to reflect the potentially passed on lower rates.

For Westpac and Macquarie Bank customers, the change automatically drops if they are paying the minimum and have a direct debit set up.

Some smaller lenders, like Bank of Queensland Specialist and Virgin Money, received criticism after not passing on the rate cuts in February.

"The real question is - will the banks play fair?" says Mozo's finance expert Rachel Wastell. "History shows they can be a bit stingy on the second cut, as during the last cycle, we saw pass-through rates shrink dramatically as the cuts went on."

"For homeowners, it's a bit of a waiting game, as lenders can take up to two weeks to make their move, and not all will pass it on in full."

Wastell says banks will also likely start punishing savers before they reward borrowers by cutting deposit rates on savings accounts first. She recommends keeping an eye out for the underdogs.

"In the home loan space, it's the smaller lenders that have been leading the charge with competitive rates while the big four lag behind."

Should you keep your repayments the same?

Even if your bank passes on the cut, keeping repayments steady can pay off. CBA data shows just 14% of eligible customers reduced their payments after February's cut, meaning millions of Australians had opted to keep their repayments the same.

"This just illustrates how determined Australians are to get ahead financially, particularly when it relates to the mortgage," says Sally Tindall, Canstar's data insights director.

"Not only will paying extra in your mortgage give you a bigger buffer to fall back on, it also has the potential to release you from the shackles of the mortgage months, if not years, early."

Canstar.com.au research shows if a borrower with a $600,000 debt and 25 years remaining in February, kept their monthly repayments at the same amount as they were paying at the start of the year, and there ends up being a total of four standard cash rate cuts in 2025 (one in February, May and two in the second half of this year) that are passed on in full, this borrower could potentially save as much as $89,143 in interest over the life of their loan.

This could help them pay off their loan four years early. However, this assumes the borrower continues to make these higher repayments for the remainder of their loan.

What's next?

While today's cut is welcome news for mortgage holders, it could spell lower returns for savers. The RBA's next meeting on July 7-8 will be closely watched.

For homeowners, now may be the time to be proactive - check your rate, consider refinancing, and decide if maintaining higher repayments is right for you.

To get a sense of whether you could benefit from refinancing, take Moneysmart's mortgage switching calculator for a spin.

The Commonwealth Bank of Australia (CBA) has quietly updated its credit policy to allow borrowers to count boarder income - money earned from renting out a spare room - towards their home loan application.

Mortgage broker George Samios, founder of Madd Loans, says the change could make all the difference for first home buyers trying to get a foothold in the market.

"This move will mean that many people can rent a room to a family member or friend and purchase a home, when before they may not have met eligibility criteria," Samios says.

And for others, "they will be able to borrow around $50,000 more due to the extra rental income, which can mean the difference between getting the home you want and missing out".

What's changed?

CBA confirmed to Money that under the revised policy, eligible borrowers can now include up to $150 per week in rental income, or $650 a month, when applying for a home loan.

The income must come from a boarder, defined by the bank as anyone who pays to live in the property, and the borrower must sign a statutory declaration, a legally binding document confirming the arrangement.

The policy applies to owner-occupied loans only, including first home purchases and refinances, and allows just one boarder per application. It excludes bridging and investor loans.

A CBA spokesperson says the update is expected to support a wide range of owner-occupiers.

"We are constantly reviewing and monitoring our home loan policies and processes to see how we can best meet our customers' home buying needs while maintaining our prudent lending standards," the spokesperson says.

How the new rule could work in real life

The update opens the door for borrowers who previously fell short on income requirements particularly those open to shared living arrangements.

For example, a single parent refinancing might declare that their adult child contributes $150 a week in board. With that income now counted, the parent could secure a better loan product than they otherwise would have qualified for.

A buyer working near a university could purchase a two-bedroom apartment and rent out the spare room to an international student, or to their mate or sibling.

But perhaps the group that benefits most from the change is first homebuyers.

The policy is open to customers with applications involving guarantor support, claiming first homeowners grants, or taking part in a Home Guarantee Scheme (HGS).

Samios says that in addition, many states will still provide stamp duty concessions. Queensland, for example, has allowed first homebuyers to rent out part of their property without jeopardising their eligibility for grants, provided they still live in the home.

"Think about this: in some cases, you now can pay zero stamp duty, access the first home buyer grant, and access up to $650 per month income towards your mortgage.

"And if you are building a new home there's no limit on purchase price."

What are other lenders doing?

While CBA is the first of the major banks to formally recognise boarder income, experts say it may not be the last.

"This is already generating a massive response," says Samios. "In a competitive market, this kind of move will force all banks to follow."

While CBA is the first major bank to formally recognise boarder income, many non-bank lenders already take a more flexible approach to income assessment-particularly for borrowers with non-traditional earnings.

Non-banks often have more relaxed lending criteria, which can benefit borrowers who rely on gig work, benefits, or irregular income. However, these lenders typically take on more risk, which can mean higher interest rates in return.

Leading up to the meeting the consensus from experts and the market had been that rates would be held steady. That turned out to be spot on, with the Board failing to deliver any April Fool's Day surprise.

In its post-meeting monetary policy decision statement, the RBA Board noted that while inflation rate is continuing to trend in the right direction, uncertainty still abounds - especially at the international level.

"Inflation has fallen substantially since the peak in 2022, as higher interest rates have been working to bring aggregate demand and supply closer towards balance.

"Recent information suggests that underlying inflation continues to ease in line with the most recent forecasts published in the February Statement on Monetary Policy.

"Nevertheless, the Board needs to be confident that this progress will continue so that inflation returns to the midpoint of the target band on a sustainable basis. It is therefore cautious about the outlook."

Mortgage rate cuts trickle down

While back-to-back rate cuts would have been welcomed by most Australians with a home loan, many will have started to benefit from cuts passed on by lenders following the RBA's February rate reduction.

The vast majority of lenders have now passed on a 25 basis point cut to borrowers in the weeks following the February rate cut, data from financial comparison website Mozo reveals. Although Virgin Money is one of the notable exceptions.

As a result, the average variable home loan rate for owner-occupier borrowers being tracked in the Mozo database has plunged from 6.71% p.a. to 6.44% p.a.

"At the start of the year, just over a dozen lenders offered rates of 5.99% p.a. or lower for owner occupiers with a 20% deposit, but now a whopping 71 lenders are," says Mozo personal finance expert, Rachel Wastell.

Wastell says that the lowest rates available on the market at the moment aren't from major lenders though, meaning that many borrowers looking for a more competitive option will need to shop around.

"Unsurprisingly, challenger banks, regional lenders and mutuals continue to lead the pack, with G&C Mutual Bank, Australian Mutual Bank, People's Choice and The Capricornian among those with the most competitive deals," Wastell says.

"While some of the lowest rates require hefty deposits or significant home equity, borrowers with just a 10% deposit can still benefit, with 13 lenders offering variable home loan rates under 5.75% for these borrowers."

What's happening with savings rates?

At the same time as mortgage rates have fallen, the rates being offered by banks to their savings account customers have also nosedived.

"Banks are promoting home loan rate cuts, because they're a win for borrowers, but savings rate cuts are also happening in the background," Wastell says.

"Just over 90% of the banks on Mozo's database have cut savings rates since the RBA move."

That's not to say that there aren't still some relatively competitive rates around. However, Wastell suggests that savers will want to be sure that they can meet the monthly conditions required to activate many bonus rates offers.

"For example, ING's Savings Maximiser has the best bonus rate at 5.40% p.a. for balances up to $100,000, but this reverts to a measly 0.05% p.a. if conditions are not met.

"For those who want a guaranteed rate of return without any conditions, Australian Unity is the one to beat, with a 4.85% p.a. unconditional rate for balances up to $250,000."

Could the RBA cut rates in May?

Looking forward, the Reserve Bank Board's next decision on monetary policy will be made in seven weeks' time when it reconvenes on May 19 and 20.

And as things stand, experts are suggesting that there's a possibility that the official cash rate could be lowered below the 4.00% mark for the first time two years.

In a survey taken before today's RBA meeting, 10 of the 28 experts (36%) polled by comparison website Finder predicted that the next rate cut would be in May.

A major factor in the Reserve Bank's decision making next month is likely to be the direction of inflation. Specifically, the results of Australian Bureau of Statistics' March quarter Consumer Price Index, which is due to be released on April 30.

In fact, in an economic update published last week, the Commonwealth Bank's head of Australian economics, Gareth Aird, noted that a 25 basis point cut in May would be "a done deal" if trimmed mean inflation comes in below the RBA's 0.7% forecast for the quarter.

Last month, Westpac revealed that it had recorded a 37% uptick in the number of offset accounts opened by mortgage customers in the past five years and a 63% increase in offset balances.

Similarly, research released by fellow major bank NAB noted that, since the pandemic, 70% of its new mortgage customers have elected to offset their loans.

Damien MacRae, managing director of mortgages at Westpac, says that for many borrowers, a major motivation has been to find ways to reduce their loan costs.

"With interest rates top of mind for Australians, we know many customers are thinking about how to get ahead on their home loan.

"An offset account is an everyday bank account linked to your home loan, where every dollar in your account reduces, or offsets, the interest you pay."

Why borrowers are embracing multiple offsets

At the same time as interest in offset accounts has increased, more lenders have started giving borrowers the option of utilising multiple offset accounts.

Both NAB and Westpac recently announced moves to roll out up to ten offset accounts to customers with eligible home loans, joining the likes of the Commonwealth Bank, Macquarie Bank, Bendigo Bank and other lenders which already offer multiple offsets.

"Multiple offset accounts give you the flexibility to 'bucket' finances for different purposes," MacRae explains.

"This can offer benefits such as more visibility and control over how you allocate your money, manage your cash flow and track spending."

Alya Manji, mortgage broker and franchisee and at Aussie Hurstville, has seen the enthusiasm for multiple offsets first-hand among her clients.

"Honestly, people seem to love them. Multiple offsets are really attractive to mortgage owners at the moment - they seem to be a real selling point."

Manji says that this enthusiasm often comes from families or couples who want to be able to separate their finances within the offset ecosystem, while still enjoying the benefits of offsetting.

"A lot of families don't want to just put everything into one offset. They like being able to have a separate account for each of their kids, one for their own savings and one for their normal everyday spending.

"So they love the fact that they can have, say, five separate offsets that are offsetting that one home loan account."

The benefits of an offset account

Stepping back for a second, what are the possible cost and time saving benefits that can come from using a mortgage offset account, or multiple offsets?

Take an example of a homeowner with a $700,000 loan which is being paid off over 30 years and currently has a variable rate of 6.00% p.a. They also have $50,000 in additional savings which they plan to store in an offset account.

If they were to keep that $50,000 in an offset over the life of the loan it could save them $207,965 in interest and shave four years off their loan term. That's assuming that their interest rate remains steady though, which is unlikely.

Going even further, if they were able to contribute $200 a month on top of that $50,000 balance they would save a total of $276,724 in interest and reduce their loan term by five years and five months.

While the potential benefits will depend on each individual situation, Manji says that an offset account can often prove a more effective option for a borrowers' savings than a term deposit or savings account.

"One of the most common discussions I have with new clients to the market is helping them understand the comparative benefits of offsetting.

"Yes, a term deposit offering a 4% p.a. may sound great, especially if you're wanting to split your savings up. But once you get a home loan, the best return you're going to get is probably to use your savings to offset that loan, provided that the loan rate is higher than the term deposit, that is."

Manji also notes that interest earned through a term deposit or savings account will be subject to income tax, whereas money kept in an offset account doesn't generate income, so won't be taxed.

Lenders do tend to charge fees on offset accounts though - often as part of package deals. So borrowers may want to weigh that up against any money they're able to save by offsetting.

The difference between offset and redraw

One of the other common questions Manji gets from clients is on the difference between offset accounts and redraw facilities. After all, they are similar in some ways.

To recap, offset accounts are separate accounts linked to a home loan which act just like normal bank accounts when it comes to making transfers or transactions via an attached debit card. However, the money kept inside them will also reduce the total home loan balance that interest is applied to.

A redraw facility, meanwhile, is a home loan feature - it's not a separate account with a card. It can be used to withdraw additional payments which have been made towards the loan, beyond the minimum.

Like an offset account, building redraw can help borrowers reduce the interest they will need to pay on their loan and the time it will take them to pay it off, but as Manji explains, that can require a bit of extra legwork.

"Say someone's pay goes into their everyday account each fortnight. They would then have to transfer that into their home loan account for it to start reducing their interest.

"Then if they wanted to redraw some of that money to buy a coffee, they would have to go online again and transfer it back to their everyday account to access those funds via a card.

"So in that sense, people will need to be really diligent about where their money is and know that any money in their everyday account is doing nothing for them - it isn't reducing interest on their loan."

There can also be different tax implications for people with investment loans. For example, investors may be able to claim a deduction on funds withdrawn from a redraw facility if they're used for investment purposes, but not for personal uses.

For offsets, the interest on the loan balance minus the amount held in offset may be tax deductible, meaning that how offset funds are spent may be less relevant.

There may also be advantages to using an offset account over a redraw facility for homeowners who plan to convert their owner-occupied property to an investment, or to use equity in their existing property to fund an investment down the track.

But given that each individual's situation will be different, it can be worth seeking advice from an accountant or expert first.

For more tips on getting the most out of your office account, check out our article on how to make your offset account work for you.

This week on the Friends With Money podcast, Money's Tom Watson is joined by Graham Cooke, head of consumer research at Finder, to discuss the latest interest rate movements and the ins and outs of refinancing a home loan.

• How have banks reacted to the recent RBA cut?
• What are the lowest mortgage rates on the market?
• Can negotiating with your current lender actually work?
• When can switching home loans be a good or bad option?
• How does refinancing alone differ from using a broker?

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Friends With Money is a weekly personal finance podcast by Money magazine, offering expert insights on investing, budgeting, superannuation, property, and other money strategies for everyday Australians.

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Episodes are hosted by Vanessa Walker and Tom Watson from Money magazine, featuring expert guests and real conversations about money.

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Homeowners with a mortgage will be breathing a collective sigh of relief following the Reserve Bank Board's decision to reduce interest rates for the first time in more than four years.

After the conclusion of its February monetary policy meeting this afternoon, the RBA Board announced that it had decided to reduce the official cash rate by 25 basis points to 4.10%.

It was the first cash rate cut since November 2020.

Leading up to the meeting speculation had been high that the RBA would lower rates given the better-than-expected figures that came out of the Australian Bureau of Statistics' latest quarterly Consumer Price Index release last month.

In its post-meeting statement, the Reserve Bank Board made reference to the encouraging inflation trend, but also noted that it would continue to pursue a cautious approach.

"In the December quarter underlying inflation was 3.2%, which suggests inflationary pressures are easing a little more quickly than expected. There has also been continued subdued growth in private demand and wage pressures have eased.

"These factors give the Board more confidence that inflation is moving sustainably towards the midpoint of the 2-3% target range.

"However, upside risks remain. Some recent labour market data have been unexpectedly strong, suggesting that the labour market may be somewhat tighter than previously thought."

What will the cut mean for mortgages and savings?

After 13 cash rate hikes in 2022 and 2023 pushed home loan rates to their highest levels in a decade, it's fair to assume that many mortgaged households will welcome today's decision and the potential repayment relief it will bring.

While the impact will differ from customer to customer, an analysis by Compare the Market suggests that a typical borrower with a $642,000 loan paying a variable rate of 6.30% will see their repayments reduced by $104 each month if their rate is cut by 25bp.

Over the course of a year that same borrower would save roughly $1250 in repayments as a result of a 25bp rate reduction.

Of course, that assumes that all lenders will pass on the cut to their customers. David Koch, economic director at Compare the Market, warns borrowers that this isn't a given though.

"The fact of the matter is some banks may not pass on a rate cut right away, while some may not pass it on at all," he says.

"This is why Australians have to be on the ball, push to be moved onto better rates or move to a lender who is offering a better deal. Your loyalty could be costing you. It simply doesn't make sense to be paying a cent more than you need to."

Not all households will necessarily be celebrating today's decision either. If mortgage rates are lowered in the coming weeks, it's highly likely that banks will also begin reducing the interest rates available on their savings account and term deposit products.

Could there be more rate cuts on the way?

Unsurprisingly, the Board didn't give any indication as to its future course of action on rates in its post-meeting statement, beyond stressing that it would approach the prospect of further easing cautiously.

But if inflation continues to ease and other indicators align, is it possible that further cash rate reductions could be on the way? Economists at Australia's four major banks certainly believe so. At least, at present.

Economists at both the Commonwealth Bank and Westpac, for instance, have pencilled in four interest rate reductions over course of 2025, including today's cut.

Meanwhile, ANZ expects two rate cuts this year (including today's) and NAB has forecast that the Reserve Bank will reduce the cash rate to 3.10% by February 2026.

Only time will tell if these forecasts prove correct. In the meantime, the Reserve Bank Board will come together again in six weeks when it holds its next monetary policy meeting on March 31 and April 1.

It does this by adjusting the cash rate, which is the interest rate banks pay to borrow money.

When the RBA raises the cash rate, borrowing becomes more expensive and interest rates on home loans and other forms of credit typically rise too, while savings accounts offer better returns. When the RBA lowers the cash rate, the opposite happens.

Keeping inflation within the 2%-3% target matters because both very low and very high inflation can harm the economy. If inflation is too low or dips into negative territory (deflation), economic growth can stall, wages can stagnate and businesses may struggle.

Conversely, if inflation is too high (as it was recently), the cost of living rises sharply, eroding household budgets and creating financial instability. By tweaking the cash rate, the RBA seeks a balance that promotes steady growth without letting prices spiral out of control.

When inflation hit 3.8% in June 2021, the RBA initially held the cash rate steady. While inflation dipped back in the following quarter, it soon began to climb again, reaching 6.1% by June 2022.

At that point, the RBA acted, introducing a series of rate hikes to curb rapidly rising prices. Some economists have made the argument that it should have acted sooner.

Inflation peaked at 6.8% in late 2022 following eight consecutive increases, with the RBA lifting cash rate from near zero to 3.1%.

Although inflation began easing after that, the RBA continued raising rates, culminating in November 2023 with an increase that brought the cash rate to 4.35%. By then, inflation had fallen to 4.1%.

In the months since, the cash rate has remained unchanged, and inflation has continued to decline, most recently settling at 2.4%.

However, the RBA has still not cut rates, largely due to trimmed mean inflation-a measure that strips out the most volatile price changes to reveal underlying trends. In September 2024, while headline inflation had fallen to 2.8%, the trimmed mean stood at 3.6%, indicating that underlying price pressures remained relatively high.

The RBA had projected trimmed mean inflation to ease to 3.4%, but the latest data showed a slightly better-than-expected decline to 3.2%.

While still above the target range, this has reinforced expectations of a rate cut, with 73% of economists in Finder's RBA Cash Rate Survey predicting a February reduction. However, opinions remain divided on how many cuts will follow in 2025.

Around 20 economists foresee two or fewer, including Matthew Greenwood-Nimmo (University of Melbourne), Dr Andrew Wilson (My Housing Market), and Adelaide Timbrell (ANZ). Eleven, including AMP's Shane Oliver, Lateral Economics' Nicholas Gruen, and Oxford Economics' Sean Langcake, expect three cuts, while four cuts were forecast by UNSW's Evgenia Dechter and Bendigo Bank's David Robertson.

The most aggressive forecast came from Stephen Koukoulas of Market Economics, who stands apart in expecting six cuts, which would bring the cash rate down to a very digestible 2.85%.

"The inflation rate is now within the RBA's target range and is expected to stay there," Koukoulas said.

"While the labour market remains relatively strong with unemployment at 4%, the RBA's new mandate prioritises maintaining full employment. The longer monetary policy remains restrictive, the greater the risk that unemployment will increase.

"By shifting to a slightly more accommodative stance, the RBA could generate additional cash flow in the economy while preventing a significant deterioration in the labour market. A series of rate cuts would help counteract potential rising unemployment while ensuring economic output remains steady. With inflation under control at around 2.4%, the focus should be on keeping the economy running efficiently without undue pressure on employment."

Even with the possibility of multiple rate cuts, the RBA will still keep a close eye on inflation.

For homeowners, each cut could translate into an annual saving of around $1000 in interest on the average loan.

Whether you choose to spend, invest or save that extra cash has implications for inflation-and in turn, for how the RBA approaches future adjustments.

An often-overlooked strategy is simply to maintain your current repayment amount even if your interest rate falls.

By doing this, you can pay off your home loan faster, reducing your principal more quickly and ultimately cutting years off your mortgage term. It's also a decision that helps keep spending in check, reducing the risk of reigniting inflation.

While further cuts may be likely, the RBA won't hesitate to respond if trimmed mean inflation remains stubbornly above target.

Meanwhile, staying focused on your repayment goals could deliver greater long-term benefits. And in the race between inflation and your mortgage, it's always a win when the finish line arrives a little sooner.

Major change coming to home loan rules

Federal Treasurer Jim Chalmers has called on bank regulator APRA to loosen its lending rules to make it easier for the 3 million Australians with a student debt to take out a home loan.

As it stands, responsible lending rules require lenders to take a home buyer's HECS-HELP debt into account when their borrowing power is determined.

This is despite the student debt being repaid in a very different way to traditional types of credit such as a car loan or credit card.

HECS repayments only kick in when graduates earn over $54,435, with a starting repayment rate of just 1% annually.

Chalmers says the changes are "commonsense", and explains, "People with a HELP debt should be treated fairly when they want to buy a house and we're working with the regulators to make sure they are."

Beauty dupe delivers $1 billion payday

MCoBeauty's motto may be 'luxe for less' but the company's Aussie founder - Shelley Sullivan, has reportedly just enjoyed a $1 billion pay day.

Sullivan has just cashed in her remaining 50% stake in the business, selling to Melbourne-based DBG Health (which already owns the other 50% share in MCoBeauty) for around $1 billion.

Sullivan started MCoBeauty five years ago with only six products.

Today, the business, which sells affordable dupes of big brand cosmetics, has over 500 products and claims to be the best-selling cosmetic brand in Woolworths and Big W.

MCoBeauty went global in 2024, launching in the US through grocery chain Kroger.

Australian women to pocket big savings on contraception

Raising a child doesn't come cheap.

In its July 2024 survey, Canstar Blue found that, on average, parents spend $1,073 each month on child-related costs including schooling.

But avoiding pregnancy isn't cheap either.

However, Australian women can now get some hip pocket relief, thanks to new subsidies for contraceptive pills.

The federal government is making the first pharmaceutical benefits scheme (PBS) listing for new oral contraceptive pills (Yaz® and Yasmin®) in more than 30 years.

It's expected to see around 50,000 women save hundreds of dollars annually.

Larger Medicare payments and more bulk billing for IUDs and birth control implants will save around 300,000 women up to $400 each year.

At the other end of the spectrum, around 150,000 women will save with the first PBS listing for new menopausal hormone therapies in over 20 years.

Minister for Women, Katy Gallagher, says, "These changes could save women and their families thousands of dollars across their lifetimes."

$8000 budget blowout for couples getting hitched

If 2025 is anything like previous years, around 120,000 Aussie couples will tie the knot this year.

But along with flowers, tulle and great memories, a wedding can also leave couples with a hefty bill.

The latest Easy Weddings' industry report shows weddings are getting more expensive.

While most couples start with a budget of around $27,000, they typically end up paying $35,315 for their wedding - almost $8,000 more than planned.

Not surprisingly, the number one stressor for couples tying the knot is sticking to their budget.

One way to manage the cost is tucking funds into a dedicated wedding savings account.

According to Mozo, some of the top rates on offer right now include 5.6% with Rabobank and 5.5% with ING (conditions apply).

If you've accumulated savings already, and the wedding is still a way off, a term deposit can lock in a high rate - including 4.90% with the likes of Bank of Sydney or even 5.10% with Defence Bank.

Better act soon though. If the Reserve Bank cuts rates next week, returns on savings accounts will be among the first things to get the chop.

The number one home buyer regret

Home buyers often feel pressure to buy a place, and that can mean cutting corners - a potentially costly mistake.

A survey by Compare the Market (CTM) shows two in five home owners have experienced buyer's remorse.

The biggest regret was not being vigilant enough when looking for faults in the home, with almost a third of regretful homeowners listing this as an issue.

A pre-purchase building inspection can set you back around $500 for an average-sized house. For an extra $150, a pest inspection may be thrown in.

Sure, it's an added cost for home buyers. But it can save a lot of hassle and expense if the property has hidden problems.

CTM's Stephen Zeller says, "Usually inspectors are really good at finding issues with a building, particularly ones that could cause a lot of grief later on."

Taking a bit more time to check a property isn't a bad idea either.

Research by ME Bank found the majority of home owners (55%) spent less than 60 minutes checking out the property they eventually purchased, despite it being one of the biggest purchases of their life.

With interest rates sitting at their highest point in 12 years, the cost of rent edging up and property values returning to record levels, it's fair to say that first home buyers have their fair share of financial challenges to navigate.

It won't come as a shock then to learn that many are turning to their families for support.

Three-quarters of parents giving financial help now classify it as a gift, according to Mozo research, compared with one-third in 2021.

While the act of providing financial support in the form of a gift is a noble one, it can throw up potential complexities: both during the mortgage process and further down the track.

So what do borrowers and their families need to know about gifting, gift letters and the other financial support options available to them?

How do lenders treat gifted deposits?

As part of the mortgage application process it's standard for lenders to run a fine-tooth comb over an applicant's savings history, current employment and any debt they may have in order to make sure that they're fit to service the loan.

So even with a healthy deposit contribution from the Bank of Mum and Dad, borrowers will still need to approach the mortgage process with a healthy financial position - including their own record of savings.

However, Shaun Lordan, the general manager of product lending at Lendi Group, says lenders have become less stringent on the savings front recently.

"It used to be a little bit more arduous where borrowers would need to show an incremental increase in their savings over a three-month period along with the gifted money," he says.

"But the big thing we've seen in the last six months is that lenders have been bringing down the barriers to allow gifting. We've seen a myriad of lenders move from asking to see genuine savings over a three-month period to only requesting one month's worth of savings."

What is a gift letter?

Given the price of property these days, many deposits will be in the six-figure range. That's a significant amount, and lenders are actually obliged to ensure that the money has come from a legitimate source - including any gifted money.

That's where gift letters come in.

A gift letter will typically need to be signed by the party providing the financial support stating that the gift is actually a genuine gift (and not a loan) and, in some cases, it will also need to include some basic information should the lender need to get in contact.

As Lordan explains though, the exact requirements of a gift letter differ from lender to lender.

"With some you'll be able to draft your own letter which a mortgage broker can give you advise on in terms of the format. For instance, here at Lendi Group, we have templates for borrowers to use. Other lenders will have their own template.

"Lenders will also ask for details about the donor which can range from a name, email and phone number to actually requesting that the note come directly from the donor themselves. It just depends on the level of scrutiny that each lenders' policy has."

Are there risks to gifting a deposit?  

One of the potential downsides to gifting money towards a property purchase is not necessarily one that many think of in the moment.

Rather, it's an issue that can crop up in the long-term if there's a relationship breakdown between whoever received the gift and their partner or spouse.

Brendan Herbert, principal lawyer at law firm Macpherson Kelley, says that the unfortunate reality is that these situations aren't unusual and that gifts can complicate things.

"Whether the relationship is de facto or a marriage, breakups are a reality of life and in any family law negotiation or dispute, whether it's in court or not, the property - being the assets and liabilities and the financial resources of the parties that are available for division - will be identified and assessed.

"So at that point, if the monies that have been advanced or the property that's been acquired with those monies is considered a gift, it would be included in the balance sheet as property that's available for division between the parties."

While Herbert says that the outcome of each case will ultimately rest on its own facts, if a family wants to avoid gifted money being shared with someone it wasn't intended for, then an alternative option could be better suited.

Are family loans or financial agreements safer options?

One option is for the money to be given as a loan which, Herbert says, would mean that if a separation occurred it would be listed on the balance sheet as a liability.

A genuine family loan intended to be paid back could impact someone's ability to take out a mortgage with a traditional lender though, so it would be worth weighing up the pros and cons.

Another option is a Family Law Act Financial Agreement which outlines how any assets would be divided in the event of a couple separating.

"An inter-family loan or gift can be recorded in a Family Law Act Financial Agreement which can be enforced in the family law courts, and it can deal with all property rights of the parties, or it can be limited to some financial issues such as gifts, loans or inheritances," Herbert says.

"If the parties separate, the financial agreement could provide for the parents to be paid out or for the intended recipient to retain the money, or the property purchased with it, as part of the settlement.

"The family law court would be effectively barred from making any orders about that loaned money, so that gives total protection."

Herbert recommends employing an experienced lawyer in the case of a Family Law Act Financial Agreement to ensure that it's prepared properly.

"For the financial agreement to be binding it needs to be drawn up by a lawyer with experience in family law matters. The ones that fail usually do so because it's fairly obvious that no legal advice was given, that technical requirements weren't complied with or that there was fraud or duress involved."

Australian property owners refinanced more than 372,000 mortgages valued at roughly $215 billion during 2024, the latest data from property settlement firm PEXA has revealed.

While it might not seem like it from the numbers, last year was actually comparatively quieter on the refinancing front. In fact, the number of loans switched in 2024 was down 17.6% on the year prior.

After a slow 12 months, 2025 could be a different story though - especially if the Reserve Bank begins lowering the cash rate.

Angus Gilfillan, chief executive of digital mortgage broker Finspo, is among those expecting refinancing activity to pick up this year based on three major drivers.

The first is that rates will be in the spotlight again, if the RBA moves. The second is that not all lenders are likely to react to rate cuts in the same way, prompting frustrated borrowers to switch.

The third, interestingly, is that Gilfillan thinks that so-called 'mortgage prisoners' may find themselves in a better position if rates do start to drop.

"Many experts anticipate that rates will fall in 2025. As a result, customers who have been unable to refinance due to serviceability constraints could see improved opportunities to do so," Gilfillan says.

"Mortgage prisoners are estimated to represent around 20% of the market, so their ability to refinance could drive significant activity."

Of course, the fact of the matter is that many borrowers will never have thought about switching, or even been in a position to refinance their mortgage before.

So how can borrowers go about it? Read on as we lay out five steps that first-time refinancers may want to consider taking with the help of two mortgage experts.

1. Ask yourself why you want to refinance

While hundreds of thousands of homeowners make the switch from one lender to another each year, it does take time and effort. So before diving in, it may be worth working out why you actually want to refinance in the first place.

For many borrowers the decision will be about cost, because switching lenders is one way to secure a lower interest rate on their loan. A lower rate could help in two ways:

• It could allow you to make lower mortgage repayments each week, fortnight or month, meaning less stress on your overall budget
• Alternatively, by switching to a loan with a lower rate but continuing to make the same repayments as you were paying before, you could pay off the loan faster  

"Be clear on your goals and understand what you want to achieve through refinancing," Gilfillan says.

"Is it simply a lower rate, or are you also looking to reduce monthly repayments, consolidate debt, or access equity? Being clear on your objectives will help you assess your options more effectively."

To get a sense of whether you could benefit from refinancing, take ASIC Moneysmart's mortgage switching calculator for a spin.

2. Get some perspective

Once you've established why you want to refinance it may be useful to get a clear idea of what your current loan is offering so you can compare it to other offers.

"The reason you're refinancing will influence what you compare," says Rachel Wastell, personal finance expert at Mozo.

"Generally you should consider the interest rate and the comparison rate (which gives you a clearer idea of the true cost), as well as the loan term, loan features and fees."

Wastell also suggests working out your current loan-to-value ratio (LVR) which may dictate the specific loans that you may be able to apply for.

Following that it's time to get a sense of how competitive your rate, fees and features are compared to other loans. Comparison websites can be handy here, but bear in mind that they are unlikely to showcase every loan on the market.

3. Ask your lender for a better deal 

Now that you've established a baseline of what you're looking to get out of refinancing and how your current loan compares, you'll be in a better position to approach the task of switching loans.

But first, you may want to consider negotiating with your existing lender. After all, if you like your lender and the way your mortgage is currently set up, there's no harm in trying to negotiate a better rate with them. They may even be keen to keep your business.

"Refinancing involves effort, so it's often worth approaching your current lender first to see if they're willing to lower your rate," Gilfillan says.

"Lenders are more likely to adjust pricing if your circumstances have improved, for example, if you've paid down a significant portion of your loan and improved your LVR. Or if competitors are offering more competitive rates."

4. Consider getting refinancing assistance 

If you've had no luck negotiating with your current lender and are set on making the switch, the next step is working out whether you want, or need, assistance with the refinancing process.

There are two options, each with its pros and cons. You can go it alone by conducting research and approaching a new lender yourself, or you can employ a mortgage broker if you want some help.

In Wastell's opinion, there are a couple of advantages to taking the refinancing reins yourself.

"Brokers often work with a limited panel of lenders, so you may be able to access a broader range of deals, including from digital-only lenders who may not partner with brokers, like Unloan," she says.

"Managing the refinancing process yourself can also enhance your financial literacy, as you gain a deeper understanding of mortgage products and terms."

On the other hand, Gilfillan believes that there are a number of benefits to refinancing with a broker.

"A good broker can reduce much of the legwork by scanning the market for you. Mortgage brokers, like Finspo for example, offer over 1000 home loan products from more than 30 lenders.

"Brokers can also handle tough conversations with lenders, including negotiating rates and terms, saving you time and hassle. They can guide you through the process and ensure you know where you're at, what's coming next and what information is required."

Gilfillan also notes that mortgage brokers are legally required to put the best interests of their clients first when it comes to recommending home loans.

5. Get your documents in order  

Once you've narrowed down your search and landed upon a lender it's time to get organised. Gilfillan says that, typically, refinancers will need documents in three key areas.

• Proof of identity: Unsurprisingly, you'll be required to prove who you are, which means that you are likely to need a passport, a birth certificate or a driver's license.
• Proof of income: You'll also need to prove that you can service the new loan. That may include providing bank statements of your transaction history over the last six months and pay slips from your employer from the past 3-6 months.
• Proof of financial situation: Beyond your income, lenders may also want to get a picture of your overall financial health. You may need to provide details of your living expenses (e.g. transport, groceries etc.), records of any other outstanding debt (e.g. a credit card), and documents related to any other assets you own (e.g. superannuation, shares etc.).

"At Finspo, we guide our customers through this process, helping them identify and prepare all the necessary documents and uploading them to their secure Finspo application tracker," Gilfillan says.

When isn't refinancing worth it?

While plenty of homeowners will be able to benefit from making the switch to a new lender and loan, it's important to note that this won't always be the case.

Given that, Wastell recommends that borrowers in the following positions either hold off entirely, or give some extra thought to refinancing before going ahead.

• You're on a fixed rate: While not always the case, breaking a fixed rate mortgage can come with hefty break fees which may eclipse any potential savings available through refinancing.
• Your LVR is over 80%: Borrowers who refinance with an LVR above the 80% mark are likely to need to pay lenders mortgage insurance (LMI) - even if they've already paid it before.
• You've experienced financial change: Whether it's a career change or a shift in spending habits, any major financial changes could make refinancing trickier.
• You're a new borrower: If you've only just taken out a loan it may not make sense to refinance, as establishment fees and other costs could outweigh the benefits of moving.

"Refinancing your mortgage can be a strategic move, but it's not always the best choice for every homeowner," Wastell says.

So there are two key reasons why you might consider refinancing.

The first is that you want to lower the monthly repayment amount, so looking for a lower interest rate can reduce the amount that you're paying monthly.

The second reason is if you want to get ahead on your loan and you want to pay off that loan faster, you might keep your repayments the same.

When you get a lower rate, if you kind of make those repayments at the same amount, you can reduce the amount of time you're paying off your loan and therefore reduce that overall interest you're paying over the loan term.

In an email to customers Tuesday, CBA said it would migrate customers with Complete Access accounts to the bank's newer Smart Access account.

While the new account would've incurred a cheaper monthly fee - $4 instead of $6 - a $3 fee would have been charged when a customer withdraws money over the counter at a branch, over the phone, or at a post office from January 6, 2025.

Critics labelled the move as "greedy", with finance minister Katy Gallagher urging the bank to reverse the decision.

"This type of charging and looking at $3 per transaction, I think, it's really hard, and particularly for those customers that have those types of accounts and want to go into the branches," she told ABC News Breakfast.

By Wednesday afternoon, CBA's retail banking services group executive Angus Sullivan said the bank would review its approach to the changes, conceding the bank did a "poor job of communicating".

"We are particularly conscious of the impact any change to planned fees and charges can have at this time of year especially given the cost-of-living pressures our customers face," Sullivan said.

The bank said that 90% of customers it wanted to migrate would have been better off or the same, given the reduction in the monthly fee.

For the remaining customers, CBA says it is pausing the migration and contact the remaining customers who might be worse off over the next six months to discuss the most appropriate product for them.

Stronger regulation on banks

The incident has reignited broader discussions about the future of cash and the role of banks in providing essential financial services.

Critics argue that banks should prioritise accessibility and affordability, particularly for vulnerable customers who may struggle with digital banking.

Julia Angrisano, national secretary of the Finance Sector Union, says CBA's backflip confirms the need for stronger regulation on banks, especially to recognise that accessing cash is an essential service.

"The Commonwealth Bank should never have decided to charge such a greedy fee, especially during a cost-of-living crisis, with high interest rates and rents hurting and with Christmas around the corner," says Angrisano.

Shrinking access to banking services

While CBA prided itself on maintaining the largest branch network, it has copped criticism after closing 354 branches and removing 2297 ATMs over the past five years.

This made it increasingly difficult for CBA customers to access free cash withdrawal services.

Concerns have also been raised about the reliability of digital banking.

A technical glitch in October caused some CBA customers to be charged twice for their transactions, further fuelling fears about the growing dependence on online services.

And while the government has made moves to ensure its mandatory for businesses to accept cash for essential items, the fears of a cashless society are stoked when institutions make it harder to access cash.

"You have no choice... Yet another way to make you go digital," said one Facebook user in response to the cash fee.

Others had voiced their dissatisfaction by threatening to switch banks, although options are limited, as other major banks have similar policies.

For example, ANZ charges $2.50 for staff-assisted transactions, while NAB and Westpac already charge $3. Excluding CBA, the other three members of the Big Four have collectively closed 1092 branches since 2018.

It's also not just the major banks that suffer from the challenges of digital banking. A Reserve Bank of Australia report recorded 532 online banking outages over almost three years.