Bank interest rates are updated regularly on our database to help you find the right product for you, whether that be a home loan, credit card, savings account, term deposit, personal loan or more.
Please note: Some rates listed may be promotional rates. Rates shown are as notified to Canstar during the previous business day.
The term “interest rate” means the amount of money you will have to pay or will receive from a bank, when you use one of its financial products. It is expressed as a percentage. When someone borrows money from a financial institution, the lender will charge interest on that loan – an extra amount of money the customer has to pay on top of their loan installments. It’s how banks make money from loans. Conversely, when someone deposits money in a bank, the bank will pay that customer a percentage of that money back in interest, depending on how long they keep those funds in that bank. It’s why people choose to put their money in a bank. Banks then use this deposited money to fund loans to other people, among other things.
Learn more about interest rates:
A good interest rate is one that is competitive against similar offerings from other institutions. Before committing to a financial product, it’s a good idea to not only consider the interest rate, but also the features and costs of the product. For example, when a customer takes out a loan, it can be a wise idea for them to ensure the loan includes features they need, such as the ability to pay extra to shorten the life of the loan or the ability to withdraw extra funds. For a savings account, it could be a wise idea to check the terms of withdrawal, and if the interest rate reverts to a lower rate after a certain period of time (known as a promotional rate).
Learn more about savings accounts: Who is offering the highest interest savings accounts?
Learn more about taking out a home loan: What to look for in a home loan
Comparison sites, such as Canstar, allow consumers to compare a large range of financial products that are on the market in Australia. Canstar has thousands of financial products listed on our database, including more than 4,000 home loan products from more than 100 lenders. To compare, go to canstar.com.au and select the type of financial product you’d like to compare – such as banking (including home loans, savings accounts and credit cards, to name a few), insurance (such as health, home and life insurance), investment (including superannuation and online share trading) and business products.
Use our comparison selectors by inputting the information that applies to you, and then hit the “compare” button. You will be presented with a list of products, which will typically be ordered according to one of their features, such as their Canstar Star Rating, or applicable interest rates. You can change the order of the listed results by adjusting the settings at the top of the list, and change what is in the list via the filter function.
Learn more about Canstar
To find out which bank has the lowest interest rate on our database, go to canstar.com.au and select the financial product you’d like to compare. Then it’s as simple as ordering the list according to the comparison rate or advertised/purchase rate, depending on the product.
Learn more:
Highest Term Deposit Rates on Canstar’s database
Lowest Variable & Fixed Home Loan Rates on Canstar’s database
A home loan comparison rate is a percentage rate that represents a closer estimate of the total cost of the loan per year. The comparison rate typically includes the interest rate, required repayments per month, as well as most upfront and ongoing fees and charges. It helps customers identify the true cost of the loan.
Learn more: What is a Home Loan Comparison Rate?
Canstar is Australia’s biggest financial comparison site, with more than 775 brands on our database^. That includes over 4,000 home loans from more than 100 lenders, helping you to compare a wide range of home loan interest rates in one place.
All rates are updated every business day as we aim to ensure you are viewing accurate, up-to-date data, whether you are buying your first home, refinancing or investing in property, looking for a great deal on a credit card, or trying to find the best savings account to suit your needs. Some rates listed may be promotional rates.
^ As of January, 2020. To be included in the count, a brand has to be able to be compared with another product from another brand on the tables on the site and we’re talking finance and Australia only.
Comparing loans: When it comes to comparing loans, the interest rate is an important consideration and can make a significant difference in the total cost of that loan. However, there are a number of other factors you may also want to consider. These factors include fees attached to the loan and features available, including an offset account or redraw facility (for home loans).
Home loans: The home loan comparison rate is designed to give borrowers a more accurate indication of the true cost of a loan and incorporates factors including the interest rate as well as most fees and charges. When you compare home loans with Canstar, you can easily view the advertised interest rate and comparison rate, as well as fees and features attached to each product. The product’s Star Rating is also displayed, to help you find a home loan that has been deemed to offer outstanding value by Canstar Research. Remember, home loans can come with principal and interest repayments or interest only repayments for a period and this can have an impact on the cost of the loan in the long term.
Savings and transaction accounts: When it comes to deposit products, it could be a wise idea to consider the applicable interest rate, along with any bonus offers and fees. For term deposits in particular, you may also want to think about the length of terms and conditions for the release of funds.
Credit cards: For credit cards, it’s important to understand that this is a lending product like a home loan or personal loan, and there are fees, charges and penalties attached for not meeting certain conditions of the loan, such as a repayment schedule.
There are many other considerations to take into account when choosing a financial product. Qualified, independent financial advice could be an option to consider.
> Looking to find a better deal? Compare car insurance, car loans, health insurance, credit cards as well as home loans, with Canstar.
Finance News - March 1st
With literally thousands of products available, what makes for a competitive rate in today's climate? Canstar has dug deep into its database to find some of the lowest variable and fixed rate home loans.
– Read moreImportant Information
1. This advice is general and has not taken into account your objectives, financial situation, or needs. It is not personal advice. Consider whether this advice is right for you, having regard to your own objectives, financial situation and needs. You may need financial advice from a suitably qualified adviser. Consider the product disclosure statement (PDS) before making any financial decision. For more information, read Canstar’s Financial Services and Credit Guide (FSCG), and read our detailed disclosure, important notes and liability disclaimer.
2. Canstar is an information provider and in giving you product information Canstar is not making any suggestion or recommendation about a particular credit product or loan. If you decide to apply for a credit product or loan, you will deal directly with a credit provider, and not with Canstar. Rates and product information should be confirmed with the relevant credit provider. For more information, read the credit provider’s key facts sheet and other applicable loan documentation for that product. Read the Comparison Rate Warning.
3. The information in this article is not legal advice, nor is it intended to be used as a substitute for obtaining independent professional advice. Please consult your legal practitioner, professional adviser or the relevant government or statutory authorities before making any decisions.
