MyState is now offering some of the most competitive deposit account rates in Australia

MyState Bank has completed a review of its current interest rates following the Reserve Bank of Australia’s (RBA) October meeting (Tuesday 4 October), where it lifted the official cash interest rate by 0.25%, taking it from 2.35% to 2.60%.

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 0.25% increase, but an additional 0.15% effective Wednesday 12 October 2022.

It is the fifth consecutive month MyState Bank has passed on at least the RBA’s increase in-full to Bonus Saver customers.

This 0.40% increase to the bonus rate will be applied on Bonus Saver accounts for new and existing customers, taking the maximum monthly interest paid to 3.6%* (once eligibility requirements have been met).

MyState Bank is now offering some of the most competitive deposit 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 wholesale funding costs, balancing the needs of both our lending customers and our deposit customers, economic factors and the competitive landscape.

“Today we are announcing an increase of 40 basis points on our multi-award winning Bonus Saver account, which is good news for customers,” said Mr Morgan.

“It’s the fifth month we’ve passed on in-full the RBA’s cash rate increase, and this month we’re again 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.”

“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 saving and term deposit rates.

“If there’s a silver lining to the RBA’s actions, savers are now being given some of the best rates in several years, and the growing competition and ease of opening accounts means that customers can take advantage of those rates.”

For MyState Bank home loan customers, variable home loan interest rates will increase by 25 basis points (0.25%), effective Monday 17 October 2022 for new and existing customers.

“While some customers are ahead on their mortgages, we know six interest rate increases in a row can be challenging for borrowers,” said Mr Morgan.

“It’s why our customer conversations since May have been around preparing for the possibility of further rate changes, and factoring that into household budgets. Our customers are looking for suggestions on preparing for the months ahead. It could be a case of making small changes to how they’re spending.”

As a responsible lender, MyState Bank strictly assess customers’ repayment capacity, and include a serviceability buffer above current interest rates.

“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.”

MyState Bank will always advise customers when interest rates change and let them know directly what their new minimum monthly repayments will be.

“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.

Helpful tips for MyState home loan customers

• All customers who have a variable rate owner occupied or investment loan will be advised directly by MyState Bank of any changes to their rate and repayments.
• If you pay your loan by electronic transfer you’ll need to update your repayment amount via Online Banking.
• If you have a direct debit set up from a nominated bank account you should check the amount to make sure it’s still meeting your new minimum repayment amount. If you’ve chosen to let us update the direct debit so it always equals the minimum repayment amount, you don’t have to do anything more.
• If you’ve asked your employer to credit your loan account directly, check the details and get in touch with your employer directly if you need to update the repayment amount.
• If you’re experiencing financial difficulty, please call us as soon as possible. Our specialist Customer Care Teams can work with you.
• If you have any questions, you can send us a message via Internet Banking or contact our friendly Customer Care Team on 138 001.