Getting More Bang for Your Buck with the Bank

Nick Little - October 27, 2026

Author: Nick Little, Principal Financial Adviser at Professional Private Wealth

When did you last check what your bank is actually paying you, or charging you?

With interest rates now much higher, a small difference in the rate on a sizeable deposit or loan can translate into thousands of dollars a year. Sometimes all it takes to improve it is knowing what you’re getting and asking the bank a very simple question.

Your bank isn’t going to ring you and ask to pay you more

Imagine you had $500,000 sitting in cash and term deposits.

Would you drive across town to save $20 on something?

Probably not.

But if another bank was offering just 0.50% more interest, that difference would be $2,500 a year before tax. On $1 million, it’s $5,000.

The same principle works in reverse with loans.

On a $500,000 loan, a rate that’s 0.50% lower represents roughly $2,500 less interest over a year, ignoring the effect of repayments and fees.

And yet many of us will spend longer comparing the price of a television than comparing the interest rate attached to hundreds of thousands of dollars.

The Interest-Rate World Has Changed

The RBA cash rate currently sits at 4.60%, effective from 30 September 2026. The latest published monthly inflation (i.e. Consumer Price Index) figure is 4.0% for the year to August 2026.

That makes this a particularly good time to know exactly what your money is earning and exactly what your debt is costing.

For Deposits: Don’t Confuse Convenience With Competitiveness

If you hold meaningful amounts in savings accounts or term deposits, there are four questions worth asking:

What rate am I actually receiving?
Not the rate advertised on the bank’s website. Your rate.
Is it a base rate or a bonus rate?
If it’s a bonus rate, check what hoops you need to jump through to receive it.
When does it change?
Introductory rates don’t necessarily last forever.
What could I receive elsewhere?
Before automatically accepting the “best” offer from your current bank, see what competitors are offering.

There’s nothing rude about asking. You’re simply giving your bank the opportunity to keep your business. Or even better, ask Nick. We are constantly researching competing deposit rates and their associated conditions.

For Borrowers: One Phone Call Could Be Surprisingly Valuable

Many of us want to pass on more than wealth.

The same logic works on the other side of the ledger.

If you still have a mortgage, investment loan or other substantial debt, don’t assume the rate you received a few years ago remains competitive today.

Those rates are obviously long out of date. The behaviour isn’t.

Know your rate. Compare it. Ask.

And if you have both substantial cash and a mortgage, consider whether the cash is being used efficiently. Money sitting in a low-interest account while you’re simultaneously paying a much higher mortgage rate deserves particular attention.

Nick’s Take

Interest rates are one of those rare areas where a relatively small amount of effort can have an immediate financial payoff.

I’m not suggesting everyone chase a different bank every three months for an extra 0.05%. Convenience, service and simplicity all have value.

But there is a big difference between being loyal to a bank because it provides good service and being loyal simply because changing or negotiating feels like too much trouble.

For retirees especially, an extra 0.25% or 0.50% on a sizeable cash holding can add up. For younger family members carrying a mortgage, the reverse applies.

Check your rate. Check the specific conditions to get that rate. Check what else is available. And most importantly, don’t be afraid to ask. A quick chat can help you spot these opportunities. Get in touch with Professional Private Wealth to book a conversation on 0408 702 056 or click below.

IMPORTANT INFORMATION

The information provided in this communication is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information in this communication you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.

This communication may contain certain ‘forward looking’ statements. Forward looking statements, opinions and estimates provided are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements including projections, indications or guidance on future earnings or financial position and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. There can be no assurance that actual outcomes will not differ materially from these statements.

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