MyState Bank has completed a review of its current interest rates following the Reserve Bank of Australia’s (RBA) December meeting (Tuesday December 6), where it lifted the official cash rate by 25 basis points, taking it from 2.85 per cent to 3.10 per cent.
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 19th of December 2022.
MyState Bank Managing Director and CEO Brett Morgan said while the RBA’s rate increase was not unexpected, the rate hike would dampen the Christmas spirit of many customers.
“The RBA has a tough challenge to rein in inflation, and that has very real consequences for our MyState home loan customers,” Mr Morgan said. “This eighth consecutive rate increase from the RBA has cemented 2022 as one the toughest for many home loan customers.
“While around six in 10 of our mortgage holders are ahead on their repayments, that doesn’t take away from the challenges they’ve faced or those ahead, with the RBA Governor flagging potential further rate hikes next year.
“Fortunately, there will be a small summer-time reprieve, with the RBA’s next meeting not scheduled until February.
“This will give MyState customers the chance to catch their breath, take stock of their savings and spending, and re-set for 2023.”
Holders of MyState’s flagship, award-winning Bonus Saver Account will receive a boost from their savings account deposit rates from December 19, with the maximum monthly interest paid to increase to 4.0 per cent per annum – with simpler bonus eligibility criteria than many peer products.
MyState will also boost the returns for a number of Term Deposit holders from December 19, including a 1.1 per cent increase to the nine month term, to a rate of 3.60 per cent, and the addition of a new 15 month term deposit with a headline rate of 4.0 per cent.
Mr Morgan said that MyState Bank understood that it was an incredibly challenging time for many customers.
“Each and every time the RBA lifts rates, we carefully examine how we can best balance the needs of our lending customers and our deposit customers,” Mr Morgan said.
“Just as we examine our wholesale funding costs, economic factors and the competitive landscape, we know that our customers are doing the same with their own budgets – and we understand that it is getting tougher.
“As always, we strongly encourage any customers facing concerns about meeting their upcoming loan repayments to please get in touch with us as early as possible, because we are here to help.”
Stay scam smart: Never provide banking information over the phone or via text to anyone even if you know them. Learn more