But deposit customers are left out in the cold
National Australia Bank has announced that it will pass on the RBA’s 25-basis-point cash rate hike to its variable mortgage customers, raising its lowest variable rate to 5.24%.
The higher rates will be effective for both new and existing customers effective Feb. 17, according to RateCity.
The new rates are as follows:
|
|
Old rate |
New rate |
Increase on $500K loan |
|
Basic variable |
4.99% |
5.24% |
$73 |
|
Discounted variable |
6.67% |
6.92% |
$79 |
|
Standard variable |
7.52% |
7.77% |
$82 |
Source: RateCity.com.au. Repayments are for owner-occupiers paying principal and interest with a $500,000 loan and 25 years remaining.
The rate hikes come after the RBA raised the cash rate for the ninth consecutive time Tuesday, bringing it to 3.35%.
So far, NAB is not passing along a single rate increase for its savings customers, RateCity said. However, the bank has said that its savings and term deposit rates are continually under review.
“NAB has been quick to announce hikes for its home loan customers, but once again, left savers in the dark,” said RateCity research director Sally Tindall. “NAB savings customers should not have to put up with this. ‘Will they hike? Won’t they hike?’ If you’ve got your hard-earned cash in the bank, you want it to be upfront so you can make an informed decision.”
Tindall said savers should contact NAB and ask whether the bank plans to pass the hike on for deposit accounts.
“If you’ve got a Reward Saver or an iSaver account, tweet, email or call the bank to find out whether the bank is going to pass this RBA hike on to you,” she said. “A decent ongoing savings rate after this last hike filters through will be over 4%. Anything less, and it could be time to break up with your bank.”
Read next: Aussies more thoughtful about spending – NAB
NAB’s decision follows a rise by ANZ, which hiked its rates less than three hours after the central bank announced its cash rate decision.
ANZ will be lifting variable interest rates across its home loan products by 0.25%, effective Feb. 17.
Unlike NAB, however, ANZ will also be passing the increase along to savers. ANZ will increase the rate for savings customers on its ANZ Plus Save account for balances less than $250,000 by 0.25% to 4%, effective Feb. 14.
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