Welcome to the Savings Account Gold Awards 2020
As Australia's most accurate and up-to-date financial product ranking and rating system, savers have long trusted RateCity’s Real Time Ratings™ to compare savings accounts based on what they need.
To make it even easier for Australians to understand the market, RateCity has introduced the RateCity Gold Award system, which awards the best savings account providers and products across the country.
About 300 savings accounts were analysed and compared from nearly 100 providers, and only the top 10 percent were named the winners. The awards are powered by Real Time Ratings™ to understand the savings account product landscape, and how prices and fees have changed over the past year. With this data, RateCity has done the hard work of finding the best savings accounts and providers for you.
Gold Award Winners for 2020
Finding Australia's best Savings Accounts has just been made easier. Select a category below and discover the loans that have received a coveted RateCity Gold Award.
The top-rated savings accounts suitable for the everyday saver. Assumes a $10,000 starting balance and monthly deposits of $600. Excludes kids' and pensioners' accounts.
The top-rated savings accounts suitable for savers who want complete freedom while still earning interest. Assumes a balance of $10,000 at any given time. Excludes kids' and pensioners' accounts, as well as accounts that offer bonus interest if certain terms and conditions are met each month.
How RateCity works out the Gold Award winners
With more than 13 years of experience in financial product comparison, RateCity’s Real Time Ratings™ system has been built on our expertise and forms the bedrock of our awards.
Real Time Ratings™ works by giving every savings account in our database a score out of five, based on factors such as rate, fees, features, and flexibility. Importantly, these ratings are run every day to capture regular product changes including rate increases and specials – factors that are often missed by other ratings and awards systems that are calculated at one or two points in time.
The RateCity Gold Award winners are then determined by averaging the daily Real Time Ratings™ scores over a six-month period, narrowing down to the most consistent top performers in each category. We recognise that not everyone has the same needs when it comes to savings accounts. That’s why why we have formed three different award categories to help you understand what’s best for you.
We know better than anyone that there are some genuinely great savings accounts and providers in the market, but we can't give every player a prize. To help you simplify complicated decisions, RateCity's Gold Awards highlight the best savings accounts and providers which go the extra mile to help its customers.
Real Time RatingsTM ranks home loans according to cost and flexibility. This allows you to compare products using a simple score out of five.
Our world-first system analyses almost 4,000 mortgages based on your individual requirements. Best of all, the results are generated in real time, so if a lender has just hiked its interest rates or introduced extra fees, our system has factored this in.
Most comparison sites give you information about rates, fees and features, but expect you’ll pay more with a low advertised rate and $400 ongoing fee or a slightly higher rate and no ongoing fee. The answer is different for each borrower and depends on a number of variables, in particular how big your loan is. Comparisons are either done based on just today or projected over a full 25 or 30 year loan. That’s not how people borrow these days. While you may take a 30 year loan, most borrowers will either upgrade their house or switch their home loan within the first five years.
You’re also expected to know exactly which features you want. This is fine for the experienced borrower, but most people know some flexibility is a good thing, but don’t know exactly which features offer more flexibility than others.
What is the flexibility score?
Today’s home loans often try to lure borrowers with a range of flexible features, including offset accounts, redraw facilities, repayment frequency options, repayment holidays, split loan options and portability. Real Time Ratings™ weights each of these features based on popularity and gives loans a ‘flexibility score’ based on how much they cater to borrowers’ needs over time. The aim is to give a higher score to loans which give borrowers more features and options.
They’re not always timely
In today’s competitive home loan market, lenders are releasing new offers almost daily. These offers are often some of the most attractive deals in the market, but won’t get rated by traditional ratings systems for up to a year.
The assumptions are out of date
The comparison rate is based on a loan size of $150,000 and a loan term of 25 years. However, the typical loan size is much higher than that. Million dollar loans are becoming increasingly common, especially if you live in metropolitan parts of Australia, like Sydney and Melbourne. It’s also uncommon for borrowers to hold a loan for 25 years. The typical shelf life for a home loan is a few years.
The other problem is because it’s a percentage, the difference between 3.9 or 3.7 per cent on a $500,000 doesn’t sound like much, but equals around $683 a year. Real Time Ratings™ not only looks at the difference in the monthly repayments, but it will work out the actual cost difference once fees are taken into consideration.
Real Time RatingsTM looks at your individual home loan requirements and uses this information to rank every applicable home loan in our database out of five.
This score is based on two main factors – cost and flexibility.
Cost is calculated by looking at the interest rates and fees over the first five years of the loan.
Flexibility is based on whether a loan offers features such as an offset account, redraw facility and extra repayments.
Real Time RatingsTM also includes the following assumptions:
- Costs are calculated on the current variable rate however they could change in the future.
- Loans are assumed to be principal and interest
- Fixed-rate loans with terms greater than five years are still assessed on a five-year basis, so 10-year fixed loans are assessed as being only five years’ long.
- Break costs are not included.
A comparison rate calculates the cost of a $150,000 loan over 25 years. While a comparison rate is a good industry benchmark, it doesn’t consider your specific lending requirements.
Real Time RatingsTM factors in essential information like your loan size, your loan-to-value ratio (LVR), whether you want an offset account and whether you are an investor or an owner-occupier.
Real Time RatingsTM was developed to save people time and money. A home loan is one of the biggest financial decisions you will ever make – and one of the most complicated. Real Time RatingsTM is designed to help you find the right loan. Until now, there has been no place borrowers can benchmark the latest rates and offers when they hit the market. Rates change all the time now and new offers hit the market almost daily, we saw the need for a way to compare these new deals against the rest of the market and make a more informed decision.