Interest rates are a key factor in many financial transactions, from personal loans to mortgages to the buying power of your savings. However, with a multitude of different rates in place and more being added all the time, it can be difficult to understand how they work.
Simply put, an interest rate is the cost of borrowing money or the compensation earned from saving it. It is typically expressed as a percentage of the principal amount and can vary by type of investment or loan.
While it may seem complicated, a basic understanding of interest rates can help you make smart decisions about the loans and credit you take out. Here are some of the main points to consider:
How rates are set
The interest rate you pay on your loans and credit is determined by a variety of factors, including the lender’s assessment of the risk that the money they lend will not be repaid (or, if collateral is provided, the value of that collateral). Lenders also use prevailing economic trends and a range of other criteria when setting their interest rates.
ANZ’s interest rates are based on a number of factors, including the Bank Rate, market conditions and our lending policies. You can view our current and historical interest rates below, or use our interactive chart. By loading the chart you agree to Tableau cookie policy. For more information see our privacy policy. ANZ’s rates apply to all new ANZ credit cards, ANZ Online Saver and ANZ Business Saver accounts and are subject to change.