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ANZ tells customers to fork out more for rewards points

ANZ customers hoping to score free flights and other benefits through one of the bank’s credit card rewards programs will now have to spend more to collect bonus points.

Under changes announced last week, ANZ is scrapping its longstanding bonus points offer on each of its rewards programs.

Previously, ANZ offered all members of its rewards programs 50,000 bonus points if they spent $3000 on their credit cards in the first three months.

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However, the bank has made it more expensive to collect the bonus points under a new tiered incentives policy.

Holders of a basic rewards card will now only receive 25,000 bonus points if they spend $2500 in the first three months.

Platinum cardholders now have to spend $5000 within three months of their credit card being issued to score the 50,000 bonus points. And holders of credit cards linked to the premium rewards program known as “ANZ Black” have to spend $7500 in the first three months to get 75,000 bonus points.

Mixed signal on fixed mortgage rates

According to Mozo – the financial services research firm – banks and other lenders are competing aggressively for new borrowers shopping for mortgages fixed up to three years.

For most of this year lenders have been reducing their pricing on fixed-rate mortgages for one, two and three years. That trend continued last week with four more lenders lowering their pricing.

APRA’s move to curb investment lending has done little to ease growth.

ING Direct cut its three-year fixed rate for owner-occupiers by 0.22 per cent to 4.23 per cent, while National Australia Bank cut its two-year rate by 0.2 per cent to 4.29 per cent.

NAB also shaved 0.1 per cent from its three-year fixed loan which is now priced at 4.39 per cent. Homeloans Ltd and iMortgage cut their two- and three-year fixed rates by 0.1 per cent.

The cheapest three-year fixed rate in the Australian market remains the Greater Building Society with an offer of 3.89 per cent.

While the price competition is intense for mortgages fixed up to three years, Mozo’s product data manager, Peter Marshall, observes that lenders have begun to increase four- and five-year fixed-rate mortgages.

“We’re starting to see four- and five-year rates edge up,” he said. “That’s a clear signal that the banks and other lenders don’t believe the low interest rate environment will persist, so they’re trying to attract customers with cheaper offers for the shorter terms.”

According to Mozo, the best offers for four- and five-year fixed rate mortgages are made by boutique lender, Freedom Lending, with 4.24 per cent for both products.

More banks shave deposit rates

There is no relief in sight for depositors as banks continue to lower rates on term deposits. Each of the following banks reduced their rates on term deposits last week:

• Community First
• Defence Bank
• G&C Mutual Bank
• IMB Bank
• Macquarie
• Police Bank

Mozo lists the following institutions among the best offers for term deposits.

• 6 months – 3.20 per cent: Citibank
• 1 year – 3.05 per cent: Teachers Mutual Bank
• 2 years – 3.05 per cent: MyState, Queensland Police Credit Union, The Rock Building Society and Arab Bank Australia.
• 5 years – 3.20 per cent: ME Bank

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