Non-majors follow suit with rate hikes

Non-major banks are fully passing on the latest rate hike from the Reserve Bank of Australia.

The Reserve Bank of Australia (RBA) has taken the decision to raise the exchange rate to the seventh time this yearraising the policy spot rate to 2.85% after a 25 basis point rate hike, which prompted the big four banks and their subsidiaries to fully pass on the rate hike, pushing standard floating rates to over 7% .

Bendigo and Adelaide Bank, Suncorp, MyState Bank, St. George, Bankwest, Credit Union SA, ME Bank, Virgin Money, ING, AMP Bank and Heritage Bank are among 18 total lenders that passed on November’s rate hike.

Bendigo Bank home loan customers with a variable rate loan will see their interest rate increase by 0.25% per annum from November 11, 2022, as well as the rate on Reward Saver deposit products from 0, 25% from November 23, 2022.

Suncorp announced that for every $100,000 of loan balance remaining on a 25-year variable loan, customers should expect their monthly repayments to increase by about $14.

Customers with MyState’s Bonus Saver account will receive the full 0.25% increase, which will be applied to new and existing customers, bringing the maximum monthly interest paid to 3.85% assuming the conditions of eligibility are met.

In addition, Bankwest, ME Bank and Heritage Bank have also announced that they will increase variable rates to 0.25% per annum for new and existing customers during the week ending November 13, 2022.

In addition, AMP Bank announced several changes to its savings and deposit products as a result of rising interest rates, all of which will come into effect on November 14, 2022.

These include a 1.10% increase for AMP SuperEdge Saver accounts; six-month retail direct term deposits will increase by 0.10%, offering direct customers a rate of 3.45%; an increase of 0.25% per year for AMP review products; and treasury account rates increase by 0.25% per year for investor clients through AMP wealth management platforms.

Richard Fennel, Chief Client Officer for Retail Banking at Bendigo Bank, said: “Bendigo Bank will continue to carefully review the impact of rate increases on our customers, borrowers and depositors. We understand that consecutive rate hikes can make it difficult for borrowers and have a team ready to address any concerns they may have. »

MyState Chief Executive and Managing Director Brett Morgan said the bank considers wholesale funding costs when making any interest rate decisions to balance the needs of lending and deposit customers, economic factors and the competitive landscape.

[RELATED: 2.85% November cash rate announced]

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