Commonwealth Bank is the second major bank to lift its variable interest rate following the Reserve Bank’s decision on Tuesday to raise the official cash rate by 0.25%.
CBA will lift its home loan variable interest rates by 0.25% effective from November 11.
In addition, the bank’s standard variable interest rate will increase by 0.25% to 1.35%. CBA’s five-month introductory variable rate will also increase by 0.50% to 3.50%, its GoalSaver with bonus interest rate will increase by 0.30% to 2.70% and Youthsaver with bonus interest rate will increase by 0.30% to 2.90%, all effective November 11.
CBA group executive, retail banking Angus Sullivan (pictured above) said the bank was committed to helping its customers navigate the current environment.
“This is why we are once again increasing the interest rates across a variety of our savings products,” Sullivan said.
“To further support savers, CBA will increase a number of term deposit interest rates including its 12-month term deposit by 0.40% to 3.75%. The bank will also increase its 18-month term deposit special to 4.00%, with both term deposit rates effective from 7 November.”
Read more: Reserve Bank decides on interest rates
Sullivan said the bank was looking at other ways it could help support customers mitigate cost of living pressures.
“We’ve recently launched a new Cost of Living Hub to provide our customers with easy access to a one-stop-shop of tools, tips and guidance to help them manage cost of living pressures,” he said.
“Some of the different tools highlighted via the hub include Spend Tracker and Money Plan, which can help customers keep track of their spending and saving. The Hub also highlights our variety of flexible home loan features, including redraw and offset facilities, as well as our Home Loan Repayment Change tool, which allows eligible customers to align their home loan repayments to when and how often they are paid.
“We understand the rapidly changing rate environment may raise questions for some of our customers and we are here to help them. We encourage our customers to message us in the CommBank app to explore different support options or to connect with a specialist.”
Read more: NAB to lift variable mortgage rates
NAB group executive for personal banking Rachel Slade said for those finding increasing interest rates a challenge, banks have a critical role to provide support.
“At NAB, we have dedicated financial counsellors who listen to each customer’s individual situation and are able to offer tailored solutions - whether that be a reduced payment arrangement, payment break or restructuring their loan,” Slade said.
“We encourage borrowers to speak to their bank early with any concerns. The results speak for themselves - when a customer gets in touch with NAB Assist at the early stages of their concerns about their finances, we’re able to get 90% back on their feet within 90 days.”
