Flourish Health & Wellbeing eMag - Latest Edition - Flipbook - Page 50
If you are a saver:
Rate changes can be an opportunity
When rates rise, many banks lift savings
rates, often with conditions. The gap
between a great bonus rate and a poor
base rate can be huge, so check the rules:
minimum deposits, card transactions,
balance caps, and what disquali昀椀es you.
If you are saving for a home deposit,
consider keeping the money accessible and
low risk. If you are investing for longer term
goals, your approach may be different and
should re昀氀ect your risk tolerance.
What about rate cuts
Rate cuts usually feel like relief for
borrowers, but they can reduce returns
for savers. If cuts arrive, it can be worth:
• reassessing whether you should lock
in part of your loan (split loans can
help some households)
• checking whether your offset strategy
is still optimal
• revisiting your savings account and
moving if the rate drops sharply
Australia’s last move was a 0.25 per
cent cash rate increase to 3.85 per cent
in February 2026, after a cut in August
2025 and a period of holding steady.
Whether rates rise or fall, the winning
approach is the same: understand what
you can control. Your loan structure, your
buffer, your features, and your habits.
