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The Big Four banks passed the RBA’s rate hike on to borrowers. But what about the savers?

Earlier in the month, the Reserve Bank of Australia (RBA) raised its interest rate target by 0.25 percentage point to 2.85 percent.

As of yesterday (Wednesday, November 16), most major banks had passed the increase on to customers.

But while mortgage rates rose at the same pace everywhere, savings accounts are different.

Here’s a breakdown of how big banks reacted to the RBA’s November decision.

ANZ Bank

Mortgage Interest: Variable rates on home loans rose 0.25 percent a year on Friday, November 11.

savings rate: Interest rates on Plus Save accounts rose 0.25 percent to 3.5 percent on Thursday, November 10.

Commonwealth Bank

Mortgage Interest: Variable rates on home loans rose 0.25 percent on Nov. 11.

savings rate: The prices for the following products have been increased:

  • NetBank Saver: The standard variable rate rose 0.25 percent to 1.35 percent, with the five-month introductory rate rising 0.5 percent to 3.5 percent
  • GoalSaver with bonus interest: Increased by 0.3 percent to 2.7 percent
  • Youth savers with bonus rate: Increased by 0.3 percent to 2.9 percent.

Macquarie Bank

Mortgage Interest: The variable reference home loan interest rate rose 0.25 percent on Nov. 16.

savings rate: The prices for the following products have been increased:

  • Savings and money market accounts: Current interest rates rose 0.25 percent to 3.45 percent on Nov. 16
  • Savings account four-month introductory rate: Increased 0.25 percent to 4.25 percent on Nov. 3
  • term deposits: Interest rates rose 0.25 percent to 3 percent per annum for a three-month term, 3.6 percent for a six-month term, 3.65 percent for a nine-month term and 4.1 percent for a 12-month term 12 months appointment on 3.11.

SNAP

Mortgage Interest: The standard variable rate home loan rate rose 0.25 percent on Nov. 11.

savings rate: The prices for the following products have been increased:

  • iSaver Four Month Adoption Rate: Increased by 0.5 percent to 3.5 percent
  • Reward Saver Bonuses: Increased by 0.25 percent to 2.75 percent.

Suncorp Bank

Mortgage Interest: Variable rates on home loans rose 0.25 percent on Nov. 11.

savings rate: As of Nov. 2, Suncorp’s interest rate on 12-month term deposits was 4 percent.

Westpac Bank

Mortgage Interest: Variable rates on home loans rose 0.25 percent on Nov. 15.

savings rate: The prices of the following products have increased starting November 9th:

  • Life in the Western Pacific: The total variable interest rate with bonus interest increased by 0.9 percent to 3.5 percent
  • Five Month Adoption Rate for Westpac eSaver: The total variable interest rate increased by 0.95 percent to 3.5 percent
  • fixed deposit: As of November 4, Westpac’s interest rate on term deposits for 12 to 23 months was 3.75 percent per annum.

How will this affect my mortgage repayments?

RateCiy estimates that the average existing variable owner-occupancy rate is now 5.61 percent.

If you’re dealing with mortgage stress, you can call the National Debt Helpline 1800 007 007 to speak with a financial advisor.

What is the advice for savers?

Sally Tindall, RateCity’s director of research, advises looking around.

“Don’t just assume that your bank will pass on the RBA hike every month,” she said.

“Heal your savings account against the competition at least every two months.

“Savers should strive for a current interest rate that is at least significantly higher than the cash interest rate.

“While these plans are becoming easier to find, customers will likely need to be proactive to get them.”

Will prices rise again?

Probably, but it’s unclear by how much.

In a statement after this month’s meeting, RBA Governor Phillip Lowe said the board expects to hike rates further.

“The size and timing of future rate hikes will continue to be determined by incoming data and the board’s view on the inflation and jobs outlook,” he said.

“The Board remains committed to bringing inflation back to target and will do whatever is necessary to bring this about.”

Will the RBA meet again this year?

Yes, the last meeting of the year is on December 6th.

But the following RBA board meeting will not take place until February 7th.

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