Big four pass on latest rate hike

Last week’s RBA cash-rate hike to 2.35 per cent is now being passed on via most Australian banks to both borrowers and savers.

Westpac delayed its response until 12 September, confirming its increase will effectively kick in from 20 September.

Across a range of financial products each bank has highlighted how and which customer loans and savings are affected, advocating customers to reach out to their banks for any clarification and advice needed.

ANZ, CBA and NAB lift from 16 September

The remaining big four banks will pass on the increased rate from 16 September, though neither ANZ nor NAB has moved on rates for savers.

ANZ will increase variable interest rates across its Australian home loans by 0.50 per cent per annum, while continuing to review its savings rates, it explained.

ANZ Group executive Australia retail, Maile Carnegie said: “We understand the cost of living and changing rate environment is impacting customers in different ways and our experienced teams are here to help our customers understand what these changes mean for them.

“We have a number of tools available to support our customers understand these changes, including our new home loan repayment calculator and our free home loan check-in.

“While many of our customers remain in a strong position, we encourage any customer who may be facing difficulties to reach out to our experienced teams as soon as they can to discuss additional personalised support.”

CBA savings get rate lift

Following the RBA cash-rate increase, CBA has raised its savings rates for certain customers by 0.6 percentage points and lifted its home loan variable interest rates by 0.50 per cent.

Its GoalSaver with bonus interest rate will increase by 0.60 per cent per annum to 2.10 per cent per annum, while its Youthsaver with bonus interest rate will increase by 0.60 per cent per annum to 2.30 per cent per annum.

The bank said following strong customer take-up, its 18-month Term Deposit special offer of 3.00 per cent p.a. will also be extended. Additionally, some of its Term Deposit interest rates will increase by up to 0.75 per cent, per annum, effective 12 September.

CBA group executive, retail banking, Angus Sullivan said: “We know that there is a lot of change happening for our customers right now, and supporting them through this time is a priority for us.”

“One of the things we are doing to help our customers better manage any pressures to their household budget associated with the rising cost of living is lifting the rates across a number of our deposit products.

“We have a range of tools and other support measures to help our customers manage their home loan repayments, including our new home loan change repayment tool, which helps our customers to synchronise their mortgage repayments with the day they are paid.”

NAB recommends early customer conversations

National Australia Bank is to lift its standard variable home loan interest rate by 0.50 per cent per annum, while its savings and term deposit rates are “continually under review.”

NAB group executive for personal banking Rachel Slade encouraged anyone with questions or concerns about interest rate changes to contact their bank.

“An early conversation with your bank is so important to staying on track financially,” Ms Slade said.

“When customers speak to our NAB Assist team early, we see that 90 per cent of our customers are back on their feet within 90 days.”

The NAB Assist team can offer tailored solutions to customers including payment breaks; reduction in payments; and referrals to financial and mental health counsellors, it explained.

The bank has made more than 20 increases on savings products since 1 May, it confirmed.

Macquarie, Suncorp also pass on rate

Macquarie Bank lifted interest rates across a range of deposit products by up to 0.65 per cent per annum following the RBA’s official 2.35 per cent cash rate decision.

The increases to savings rates include Macquarie’s savings account welcome rate that will increase 0.60 per cent to 3.70 per cent per annum for new customers, for the first four months on balances up to $250,000 — effective now.

The ongoing interest rate customers earn on both their savings and everyday transaction accounts will increase 0.50 per cent to 2.75 per cent per annum on balances up to $250,000 — effective 16 September 2022.

Two-year term deposit rates will increase to 4.05 per cent per annum, effective now while one-year term deposits are also available on Monday (12 September) at 3.65 per cent per annum. The term deposit rates apply on balances under $1 million with interest paid at maturity, Macquarie Bank confirmed. 

Its Cash Management Account (CMA) Accelerator interest rates will increase 0.65 per cent per annum on balances up to $2 million — effective 16 September.

Macquarie will also increase variable home loan reference rates by 0.50 per cent per annum from 16 September.

Also confirming an increase on its home loan variable rates by 0.50 per cent per annum, Suncorp explained this increase means that for every $100,000 of loan balance remaining on a customer’s 25-year variable loan, customers can expect their monthly repayments to increase by around $26.

For deposit customers, savers can now also earn 3.50 per cent per annum on Suncorp Bank’s 18-month Term Deposit, it confirmed.

ING to change rates from 15 September

ING Bank’s 50-bp interest rate increase is effective 15 September.

With a focus on the savings benefits to its customers, ING confirmed all variable savings and variable home loan rate increases will be effective from 15 September 2022.

ING will add 50 bps to its ING Savings Accelerator offerings (for new and existing customers).

“For example, customers with more than $150,000 in their Saving Accelerator will earn an interest of 2.60 per cent per annum, up from 2.10 per cent per annum,” the bank explained.

Its news for borrowers confirmed that: “In addition the bank will increase all variable home loan rates for new and existing customers by 0.50 per cent per annum.”

[Related: RBA hikes cash rate yet again]