CBA gave a three day reprieve but never the less raises interest rates in line with RBA rate hike

Following the Reserve Bank of Australia’s (RBA) decision to raise the official cash rate by 0.25% per annum (p.a.), CBA has announced it will increase interest rates across a number of its savings products, and will lift its home loan variable interest rates by 0.25% p.a. All savings and home loan variable rate changes announced today will be effective 12 May 2023.

New savings rates

  • NetBank Saver1 5-month introductory variable interest rate will increase by 0.25% p.a. to 4.50% p.a., comprising a standard variable rate of 1.95% p.a. and fixed bonus margin of 2.55% p.a.
  • Youthsaver with bonus interest rate will increase by 0.25% p.a. to 4.50% p.a., comprising a standard variable rate of 2.10% p.a. and bonus interest rate of 2.40% p.a.
  • GoalSaver with bonus interest rate will increase by 0.25% p.a. to 4.40% p.a., comprising a standard variable rate of 0.40% p.a. and bonus interest rate of 4.00% p.a.

Group Executive, Retail Banking, Angus Sullivan said: “Today, we are announcing increases across our core savings products, including the NetBank Saver 5-month introductory variable interest rate, which will increase to 4.50% p.a.

“To further support savers, CBA will extend its 12-month 4.35% p.a. Term Deposit special.

“To provide more certainty for home loan customers following increases in the RBA cash rate, we recently reduced our Three Year Fixed Rate home loan interest rate, which may appeal to customers seeking to manage their future home loan repayments while the cost of living pressures are rising.”

The Three Year Fixed Rate home loan for owner occupiers paying principal and interest repayments, reduced by 0.40% p.a. to 5.59% p.a., within the package, with a comparison rate2 of 7.20% p.a., effective as of 14 April 2023.

Mr Sullivan said: “We understand the combination of increasing interest rates and the rising cost of living is creating challenges for some customers, which is why we encourage any customer with concerns to message us in the CommBank app to start a conversation with one of our specialists – the sooner that conversation begins, the sooner we can begin to work together to find solutions based on each customer’s individual circumstances.

“Our comprehensive program of support for our home loan customers includes proactively getting in touch with customers who will be rolling off fixed-rate loans, as well as a range of other options to ensure customers experiencing hardship are in the best possible position to manage their finances.

“For those looking for guidance on ways to manage the rising cost of living, our Cost of Living Support Hub provides a range of tools, tips and articles, as well as the latest offers and deals available for our customers. 

Customers can also unlock more value through cashback when they shop with CommBank Rewardsin the CommBank app, which has already helped customers save more than $27 million. These savings primarily relate to everyday spending including groceries, fuel, pharmacy items and pet food.

Quick tips and tools to help get on top of your finances:

  1. Visit our Cost of Living Support Hub to view a myriad of tools, tips and guidance all designed to help you navigate the current cost of living pressures.
  2. Use our suite of budgeting tools to help manage your finances including Money Plan in the CommBank app, which helps you to track your spending, stay on top of bills and set goals.
  3. Use Spend Tracker in the CommBank app to help categorise your debit and credit card transactions, making it easier to see the impact your spending decisions have on your everyday finances.
  4. Use Category budgets to set weekly, fortnightly or monthly budgets for different categories of your spending – from entertainment to transport, eating out and shopping. You can see how your spend compares to the budget you set yourself, to help you stay on track.
  5. Estimate how much your home loan repayments may increase via the home loan repayments calculator.
  6. Make the most of an offset account. An offset account is a transaction account linked to a standard variable interest rate home loan or investment home loan that can help you pay less interest over time. For customers looking to maximise the benefits of offsetting, we offer multiple offset accounts.
  7. Eligible customers can align their home loan repayments to when and how often they are paid via the Home Loan repayment change tool. Research suggests small changes, like aligning your home loan repayment day with your payday, can make it easier to manage your finances.
  8. Consider how taking out a fixed rate home loan could give you greater certainty around your regular mortgage repayments. For more information, contact us in the CommBank app to be connected with a home lending specialist or visit our home loan interest rates page.
  9. Save on your everyday spending by checking Rewards in the CommBank app.
  10. Through Benefits Finder in the CommBank app and NetBank you can find benefits, rebates and concessions you might be entitled to. The extra money claimed could help you save money or pay for everyday expenses.

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