As Aussies continue to struggle with the cost of living, and while it’s true that every cent saved counts, at Compare Club we’ve been looking at ways we can help you save more dollars. We’re calling it big figure savings.
We’ve crunched the numbers and done the groundwork and found … are you ready, a yearly saving of $7719*.
Kate Browne, head of research, says: “Our latest analysis shows that despite increasing economic pressures, there are still significant savings for household expenses. Australians can put thousands back into their pockets by reviewing their biggest bills.”
If you’re thinking it sounds too good to be true, keep reading and in six minutes you’ll discover ways to boost your bank balance with real, big figure savings.
What areas can you save in?
Compare Club has identified six solid categories whereby thousands of dollars can be saved simply by switching.
- home loans
- health insurance
- energy
- car loans
- credit cards
- life insurance
How to save on your home loan
If you have a home loan, and haven’t already looked for a better rate, it’s not too late. Now’s the time to shave thousands from your mortgage repayments with a lower interest rate.
At Compare Club we have very competitive rates and on average you could get 0.84 per cent off your mortgage.
What this translates to, is that on an average mortgage of $615,178, you could save a massive $5167 per year.
Be aware: refinancing can come with extra costs, including:
- application fees
- property valuation fees
- discharge fees from the existing lender
- government fees like mortgage registration
- lender’s mortgage insurance if your new loan exceeds 80 per cent of the property’s value.
It’s important to factor in the fees to work out if the potential savings from a lower interest rate outweigh the up-front costs of refinancing.
“Refinancing a mortgage can take as little as a couple of days. Many lenders offer fully digital applications, which are far quicker and easier than what was required in the past, so it’s possible to start saving thousands of dollars in what would amount to an afternoon,” says Ms Browne.
Health insurance switch and save
Our analysis has found that just about everyone can save on health insurance by switching – singles, couples, single parents and families.
The average annual savings by switching:
- families can save the most with $328.32
- single parent families can save $271.59
- couples are able to save $174.97
- singles can save a whopping $196.85.
Top tip: savings can double in value when coupled with benefits health insurance providers give for switching. This can be credits to your account, waiving certain waiting periods or offering a certain number of weeks free.
For example, Bupa is currently offering eight weeks free and waiving specific extras.
This means families can save an extra $300 plus $328.32 from switching – a total saving of $628.32 in the first year.
Singles can also benefit and save $150 plus $196.85 from switching – a total saving of $346.85 in the first year.
The best way to find out about special offers is to compare and switch, but keep in mind that offers can often change.
“We find many Aussies are still paying the price for loyalty by staying with the same insurer and the same plan for years, which may not be the best value or the most suitable cover. Comparing and switching health insurance is easy and it can be done in less than 20 minutes on the phone with our agents, with zero paperwork,” explains Ms Browne.
The energy to switch and save is effortless
Our analysis showed that while saving on energy bills varies from one state to another, the savings do add up for most households.
“If you have the option to compare and switch energy providers, you should be doing it every year. It’s one of the easiest switches to do and worth it for the savings,” says Ms Browne.
Here are the average yearly savings we uncovered:
- Regional NSW residents can save the most money – $317.40.
- Residents in Sydney, Western Sydney, Blue Mountains and the Illawarra can save up to $276.
- South-East Queenslanders can save up to $246.
- South Australians can save $210.
- Victorians can save $209.60.
How to amplify the energy savings
When combining the savings from switching with the $300 federal government rebate, other government incentives and programs, the savings are even better.
For example, if you’re a Sydney resident, you can switch, use the government rebate, and if you take full advantage of the energy-saving, appliance upgrade initiative, you could save $2491 on your energy bills this year.
Or, if you’re a Victorian who maximises the Victorian Energy Upgrades program (VEU), and you combine this with the government rebate as well as switching, you could save $3225.50 a year.
Tip: look at your state government energy website to find out about offers, upgrades and rebates you can snap up.
Get more vroom out of your car loan
Getting a better deal on your car loan is another area you can make big figure savings.
While the RBA reports that the average variable interest rate for a car loan is 14.41 per cent and 12.42 per cent for a fixed loan, there are plenty of attractive offers with lower interest rates in the market.
When refinancing a car loan of $31,738.40, based on the average current rate (13.41 per cent) against the best rate on the market (6.59 per cent), you can expect to save $77 on average in monthly repayments. This saving is just shy of $1000 each year, at $924.
Be aware: refinancing a car loan can involve additional costs, including:
- application fees
- exit fees or early termination fees if you end your current loan early
- possible vehicle inspection or valuation fees
- government charges for updating vehicle registration or lienholder information can add $30 to $100, depending on the state or territory.
If your existing loan has a fixed interest rate, breaking the loan early could incur fees. Some lenders may also charge ongoing fees, such as maintenance fees.
Switching your credit card
Credit card debt can spiral out of control for Aussies who rely on them too much … and don’t pay them off by the due date. Switching credit cards and transferring debt from one card to another may help get your finances back on track.
Our research showed that based on the average amount of credit card debt of $3076, by using a balance transfer option and interest-free period, $908 could be saved in 12 months.
Here’s the breakdown of the savings from switching credit cards:
| Average interest rate on credit cards | 17.12 per cent |
| Average amount of debt on a credit card | $3076 |
| Average amount of interest-accruing debt on a credit card | $1363 |
| Best balance transfer credit card interest free period on Compare Club panel | 0 per cent for 34 months balance transfer fee, 14.99 per cent purchase rate |
| Amount saved in interest in 12 months | $516 |
| Total overall amount saved in 12 months | $908 |
Be aware: balance transfer credit cards come with a revert rate – often much higher – after the interest-free period ends. This means any remaining balance will attract interest at the standard rate.
Tip: be sure you can pay off the transferred balance within the interest-free period.
Revisit your life insurance policy
Life never stands still, which is why having a life insurance policy should never be set and forget. Once again there are some big figure savings you could put back into your pocket.
Our findings showed that a life insurance policy for a non-smoker could save up to $240 a year, which is a 35 per cent saving. Meanwhile smokers can save a massive 71 per cent, which translates to $974 annually.
With these savings tallied up, we’ve calculated a big figure annual saving of $7719*.
So it’s over to you – are you interested to see how much you can save by comparing and switching?
The experts at Compare Club can check if you’re already on the best plan. And if you’re not, they can make it easy to compare, switch and save on your:
*Average annual saving based on a non-smoker.
About the analysis: Compare Club analysis took place in September 2024. Figures and amounts are correct at time of publishing.
Article first appeared on Expert Analysis.
When was the last time you really took a look at your bills? Are there any areas you think you could save on? Let us know in the comments section below.
Also read: How to start investing in retirement
Disclaimer: The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should check with a financial professional before making any decisions. Any opinions expressed within an article are those of the author and do not specifically reflect the views of Compare Club Australia Pty Ltd.
I received my car insurance renewal just 2 weeks ago – they want a 55% increase. After getting 14 other quotes – cheapest I can find is an increase of 46%, with higher excess, and considerably lower agreed value.
Today I also got my home insurance – want an increase of 62%! So far, I have got 12 other quotes and have found one company with quote similar to what I paid last year, so will research that further.
One thing that stands out VERY, VERY clear. Any insurance company that indicates ANY mention of seniors, or pensioners – are absolutely BY FAR the dearest. Without exception. I believe this to be a deliberate ploy, to play on seniors, who think just because the company name makes any mention of assisting seniors, the customer thinks they are getting a good deal. NOT so.
To add – I am in my 70’s, have a small home and have NEVER made a car or home insurance claim. These increases are beyond obscene and a complete rort.