MyState Bank has completed a review of its current interest rates following the Reserve Bank of Australia’s (RBA) September meeting (Tuesday 6 September), where it lifted the official cash interest rate by 0.50%, taking it from 1.85% to 2.35%.
The RBA rise is good news for holders of MyState’s flagship, award-winning Bonus Saver account. Not only will MyState Bank Bonus Saver customers receive the full RBA’s 0.50% increase, but an additional 0.10% effective 19 September 2022.
It is the fourth consecutive month MyState Bank has passed on at least the RBA’s increase in-full to Bonus Saver customers.
This 0.60% increase to the bonus rate will be applied on Bonus Saver accounts for new and existing customers, taking the maximum monthly interest paid to 3.2%* (once eligibility requirements have been met).
MyState Bank is also announcing further increases to several term deposit rates. It’s the sixth increase in term deposits for MyState customer since April. Following these boosts, MyState now has a headline rate of 3.60% for a 12 month term, effective 8 September 2022.
MyState Bank is now offering some of the most competitive term deposit and savings account rates in Australia.
MyState Bank Managing Director and CEO Brett Morgan said when making any decision on interest rates, the bank takes into account the needs of both deposit and lending customers.
“Today we are announcing an increase of 60 basis points on our multi-award winning Bonus Saver account, which is good news for customers. It’s the fourth month we’ve passed on in-full the RBA’s cash rate increase, and this month we’re topping it up a little bit more. Beyond the competitive rates we’re offering, Bonus Saver accounts also give our customers personalised insights, which helps them keep track of their spending and identify places to save,” said Mr Morgan.
“We know the current environment is challenging for both our mortgage customers and savers. The decision to increase interest rates for depositors recognises the higher cost of living faced by our customers.”
Mr Morgan said they’ve also had great feedback from existing and new customers over the past few months, who’ve taken advantage of MyState Bank’s competitive term deposit rates.
“Our MyState term deposit rates are sharp and highly competitive. We have customers who are happy to lock their money away, and others who want it at call. We’ve been able to offer multiple increases to term deposit rates this year, and have attracted new customers as a result. We’re delivering larger returns for our customers who want stability in managing and growing their savings over time.”
For MyState Bank home loan customers, variable home loan interest rates will increase by 50 basis points (0.50%), effective Monday 19 September 2022 for new and existing customers.
“While some customers are ahead on their mortgages, for others this will be the first time they’ve been faced with several months of increasing repayments,” said Mr Morgan.
Mr Morgan added many conversations lately with customers are around preparing for the possibility of further rate changes. However, as a responsible lender, Mr Morgan added MyState Bank strictly assess customers’ repayment capacity, and include a serviceability buffer above current interest rates.
“Over the past month, our customer contact centre conversations are not just about interest rates, but also about cost of living pressures. For any customers concerned about their ability to meet upcoming loan repayments, we strongly encourage they get in contact with us as early as possible, as there are ways we can help out.”
Mr Morgan said while this latest increase in the cash rate was widely anticipated, home loan customers will understandably be concerned about the impact on household budgets. MyState Bank will always advise customers when interest rates change and let them know directly what their new minimum monthly repayments will be.
“Many of our MyState Bank customers are looking for budget advice on preparing for the months ahead. It could be a case making small changes now.”
“We’ve got some handy tools and money saving articles on our MyState Bank website. For example our home loan repayment calculator, can help with monthly budgeting,” said Mr Morgan.
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