MyState Bank Announces Changes to Interest Rates – February 2023
MyState Bank has completed a review of its current interest rates following the Reserve Bank of Australia’s (RBA) first meeting of 2023, where it lifted the official cash rate by 25 basis points, taking it from 3.10 per cent to 3.35 per cent.
The RBA rise is good news for holders of MyState’s flagship, award-winning Bonus Saver account, who will receive the full RBA’s 0.25 per cent increase, plus a bonus 0.10 per cent. This takes the total boost to 0.35 per cent, and the new maximum monthly interest paid to 4.35 per cent1 for new and existing customers – one of the most competitive rates in Australia. The change will be effective from the 13th of February 2023.
“This is the seventh month that MyState Bank has passed on the RBA’s increase in-full, or more, to Bonus Saver customers,” Managing Director and CEO of MyState Bank Brett Morgan said. “Every time the RBA lifts rates, we carefully examine how we can best balance the needs of our lending customers and our deposit customers.”
In response to the RBA’s decision to increase the official cash rate, the MyState Bank variable home loan interest rate will also move by 25 basis points. The change will be effective from the 20th of February 2023.
“The ninth RBA rate rise and its indication that there are more increases to come sets the scene for a challenging 2023 for many home loan holders,” Mr Morgan said.
“Borrowers will rightly be concerned after the RBA Governor Phil Lowe yesterday foreshadowed more pain, saying ‘further increases in interest rates will be needed over the months ahead to ensure that inflation returns to target’.
“MyState expects short term pain for home loan holders with further rate rises, but we also anticipate some long term relief with the chance of rate drops towards the end of the year as inflation gets under control.
“We understand that the RBA rate rises will hit many hip-pockets and family budgets hard. We encourage anyone who is concerned about meeting their repayments to give us a call, because we’re here to listen and to help.”
Last week, MyState Bank lowered rates on its most popular fixed rates home loans, available for new fixed rate loans. For owner occupiers, two year term rates dropped by 0.30 per cent, the lowest available rates from 5.49 per cent. For owner occupiers, three year term rates dropped by 0.90 per cent, the lowest available rates are from 5.49 per cent.
With many mortgage holders facing the extra challenge of the fixed rate term on their mortgage ending this year, MyState is taking action to help by calling every customer in the weeks before their fixed rate expires and reducing the rates of its most popular fixed loans.
“Coupled with the rising cost of living, it can be a really frightening and uncertain financial time, especially if you’re not prepared,” Mr Morgan said. “That’s why MyState is going the extra mile, and we’re calling every single one of our fixed rate mortgage holders in the weeks before their fixed rate expires.
“We’ve also taken the decision to lower our most popular fixed rates for new fixed rate loans right now. We want to do whatever we can to help.
“We’ve already spoken to dozens of our home loan holders, and it’s clear that being able to speak to a local who truly understands their needs and who can help with what to do next is making a difference.”
1Once eligibility requirements have been met.
