Non-majors follow suit with rate hikes

The Reserve Bank of Australia (RBA) made the decision to increase the cash rate for the seventh time this year, bringing the official cash rate up to 2.85 per cent after a 25-bp rate rise, which prompted all big four banks and its subsidiaries to pass on the rate hike in full, bringing standard variable rates to over 7 per cent.

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 the 18 total lenders that have passed on the November rate hike.

Bendigo Bank home loan customers on a variable rate loan will have their interest rate rise by 0.25 per cent per annum starting 11 November 2022, along with increasing the rate on Reward Saver deposit products by 0.25 per cent as of 23 November 2022.

Suncorp has 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 approximately $14.

Customers with MyState’s Bonus Saver account will receive the full 0.25 per cent increase, which will be applied for new and existing customers, bringing up the maximum monthly interest paid to 3.85 per cent assuming eligibility requirements have been met.

Furthermore, Bankwest, ME Bank and Heritage Bank have also released announcement that they will be lifting variable rates to 0.25 per cent per annum for new and existing customers during the week ending 13 November 2022.

In addition, AMP Bank has announced several changes to its savings and deposit products as a result of the interest rate increases, all coming into effect by 14 November 2022.

These include a 1.10 per cent increase for AMP SuperEdge Saver accounts; six-month direct Retail Term Deposits to increase by 0.10 per cent, giving direct customers a rate of 3.45 per cent; an increase of 0.25 per cent p.a. for AMP Notice Products; and cash account rates increasing by 0.25 per cent p.a. to investment clients through AMP wealth platforms.

Richard Fennel, chief customer officer for consumer banking at Bendigo Bank, stated: “Bendigo Bank will continue to carefully consider the impact rate rises have on our customers, borrowers and depositors alike. We understand that consecutive rate rises can make it difficult for borrowers and have a team standing by to help with any concerns they may have.”

MyState’s chief executive and managing director Brett Morgan said the bank takes into account wholesale funding costs when making any decision on interest rates to balance the needs of both lending and deposit customers, economic factors, and competitive landscape.

[RELATED: 2.85% November cash rate announced]

Written by Adrian Suljanovic

Last Updated: 04 November 2022

Published: 07 November 2022