9 Ways the Latest Rate Cuts Can Save You $10,000 a Year

After years of rising repayments, Australians are finally seeing interest rates ease. February’s 0.25 percentage point cut shaved $76 a month off a $500,000 mortgage repayment, but the total savings could be more than $1,000 a year. With that extra money now flowing through, smart moves can turn small monthly savings into thousands over time.

1. Refinance your loan

Lower rates mean better borrowing power and increased competition by lenders for customers. As such, it’s a great time to consider refinancing.

You could double (or more!) the size of this rate cut – especially if your pay recently increased or your costs decreased, such as no more school fees after a child graduates.

Potential difference: $151.42 monthly savings by doubling the official rate cut to 5.55 per cent on a $500,000 mortgage.

2. Keep repayments the same

Just because rates have come down doesn’t mean you have to pay that new amount.

If you can afford to, keep your repayments the same. The extra amount you’re paying will chip away at the principal loan balance faster, meaning the amount you owe decreases and less interest accrues in future.

Potential difference: $26,588.07 saved over 25 years on a $500,000 mortgage. Over time, the savings would be 2.37 years of interest saved, which is over $60,000.

3. Pay down debts

Falling mortgage repayments mean more money to put towards paying down other debts.

Start with high-interest debts first, such as credit cards or car loans – these balloon quickly if you fall behind and adversely affect your ability to refinance your mortgage or get a new loan.

Potential difference: $151.43 monthly savings by clearing a $1,634 credit card debt with average 20.08 per cent interest rate.

4. Reassess savings accounts

The flip side of falling interest rates is that savings accounts and new term deposits become less attractive.

It may be worthwhile to reinvest your savings somewhere with higher earning potential. This becomes increasingly important the more interest rates fall. You should also consider tax though.

Potential difference: $1.68/month is small, but this also excludes compound earnings investing $76.15 monthly at 7.5 per cent sharemarket returns vs 5.25 per cent in a high-interest savings account.

5. Top up your super

Your superannuation balance will grow faster with more money going in and compound earnings between now and retirement. Plus, there are generous tax breaks for making voluntary super contributions.

Potential difference: $23.00 extra per year (excluding compound earnings and tax savings which is the bigger saving) contributing $76.15 per month at average 8.1 per cent returns.

6. Upskill to boost your income

Extra cash can be used towards study/qualifications to boost future earnings. Or you could start a side hustle that could deliver additional income or even allow you to earn more than your current job pays.

Potential difference: Just a 5% increase on the average $1,396 weekly income delivers an extra $3,629.60 per year. Self-education and self-employment costs are tax deductible too!

7. Invest in yourself

Investing in your health (physical and mental) has longer-term benefits: lower medical bills, fewer sick days, reduced risk of forced early retirement or premature death.

Potential difference: Thousands of dollars and a long, healthy life vs a shorter lifespan and/or poorer quality of life.

8. Boost your emergency fund

It is easier to build an emergency fund – cash set aside for a rainy day – in smaller, regular amounts than big lump sums. Rate cut savings are ideal for this, as you’re already used to living without this money.

Potential difference: Immeasurable if it’s the difference between having money set aside or having nothing, should disaster strike!

9. Donate to charity

If you’re going to spend your rate cut money no matter what, why not donate it to charity.

It will do some good for the world and give you the satisfaction that comes from helping others. Plus, you can claim a tax deduction on donations over $2.

Potential difference: You can receive a refund of up to 45 cents on every dollar donated, depending on your tax bracket.

As the above points show, there are plenty of ways to make rate cuts work even harder for you. The biggest difference will be whether you take action or let the savings flutter away

Helen Baker is a licensed Australian financial adviser and author of the new book, Money For Life: How to build financial security from firm foundations (Major Street Publishing $32.99). Find out more at www.onyourowntwofeet.com.au

Bhutan has become the first country in the world to implement a national-level cryptocurrency payment system for tourism, marking a major milestone in digital innovation and travel.

Launched in partnership with Binance Pay and Bhutan’s fully digital DK Bank, the system enables travellers with Binance accounts to enjoy a seamless, end-to-end crypto-powered journey. More than 100 local merchants, from hotels and tour operators to small roadside vendors in remote villages, are already live on the system.

“This is more than a payment solution — it’s a commitment to innovation, inclusion, and convenience,” said Damcho Rinzin, Director of the Department of Tourism, Bhutan.

“It enables a seamless experience for travellers and empowers even small vendors in remote villages to participate in the tourism economy.”

Using supported cryptocurrencies, tourists can now pay for nearly every part of their trip, including airline tickets, visas, the Sustainable Development Fee (SDF), hotel stays, monument entry fees, local guides, and shopping, all through secure static and dynamic QR code payments.

Binance CEO Richard Teng praised the move, saying: “We are excited to partner with Bhutan as we are not only advancing the use of cryptocurrencies in travel but also setting a precedent for how technology can bridge cultures and economies. This initiative exemplifies our commitment to innovation and our belief in a future where digital finance empowers global connectivity and enriches travel experiences.”

Known as the “Kingdom of Happiness,” Bhutan has long prioritised Gross National Happiness over GDP, with a strong focus on sustainability, cultural preservation, and societal well-being. The new system aligns with these values by reducing payment friction and bringing financial inclusion to local communities.

Among the key features of the system:

Seamless Experience: Tourists can pay with crypto for all travel-related expenses.
Inclusive Reach: Small vendors, even in remote areas, can accept QR code payments.
Lower Fees: Transactions cost significantly less than traditional payment methods.
Comprehensive Support: More than 100 cryptocurrencies supported, including BNB, BTC, and USDC.
Secure and Instant: Real-time confirmations, 2FA, and encrypted transactions via the Binance app.

Behind the local settlement mechanism is DK Bank, Bhutan’s first fully digital bank. Licensed by the Royal Monetary Authority of Bhutan, it aims to deliver accessible financial services to all, including marginalised and unbanked communities.

The launch is being hailed as a bold step forward in integrating digital finance with global tourism — one that could set the benchmark for other nations looking to modernise the travel experience while empowering their local economies.