The Commonwealth Bank has responded to the Reserve Bank of Australia’s cash rate decision.
Following the Reserve Bank of Australia’s (RBA) decision to raise the official cash rate by 0.25% per annum (p.a.), CBA 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 16 June 2023.
New savings rates
- NetBank Saver1 standard variable interest rate will increase by 0.25% p.a. to 2.20% p.a. The 5-month introductory variable interest rate will increase by 0.25% p.a. to 4.75% p.a.
- GoalSaver with bonus interest rate will increase by 0.25% p.a. to 4.65% p.a., comprising a standard variable rate of 0.40% p.a. and bonus interest rate of 4.25% p.a.
- Youthsaver with bonus interest rate will increase by 0.25% p.a. to 4.75% p.a., comprising a standard variable rate of 2.35% p.a. and bonus interest rate of 2.40% p.a.
Group Executive, Retail Banking, Angus Sullivan said: “The increases we are announcing today across our core savings products provide terrific opportunities for savers to make their money work harder for them.
“To help customers save, we have increased rates on our savings products, some by more than the RBA cash rate change. For example since May 2022 we have increased the GoalSaver with bonus rate from 0.25% pa to 4.65% p.a., effective 16 June 2023.
“Our savings products have different features and serve different purposes, so we encourage customers to speak to us if they need help to choose which product may be most suitable for them.
“To further support savers, we will also increase the 12-month Term Deposit special2 to 4.55% p.a., effective 16 June 2023.
“As part of our ongoing review of interest rates and market conditions, we are making changes to our Fixed Rate home loans including reductions to our Four Year and Five Year Fixed Rate home loan by as much as 0.40% p.a., effective 16 June 2023. These options may appeal to customers seeking to manage their future home loan repayments while cost of living pressures are rising.
“We know Australians are having to make tough choices when managing their money and we have a number of solutions available for customers who are experiencing hardship. We encourage any customer who is worried or experiencing financial difficulty to contact us by messaging us in the CommBank app as soon as possible, so they can be connected with the specialist to help find a solution that’s right for them” Mr Sullivan said.
Fixed Rate home loan changes
Fixed Rate changes for owner occupiers paying principal and interest repayments:
One Year Fixed Rate home loan, increased by 0.30% p.a. to 6.29% p.a. within package, with a comparison rate3 of 8.04% p.a., effective 16 June 2023
Two Year Fixed Rate home loan, increased by 0.20% p.a. to 6.29% p.a. within package, with a comparison rate3 of 7.88% p.a., effective 16 June 2023
Three Year Fixed Rate home loan, increased by 0.40% p.a. to 5.99% p.a. within package, with a comparison rate3 of 7.66% p.a., effective 16 June 2023
Four Year Fixed Rate home loan, reduced by 0.30% p.a. to 6.29% p.a. within package, with a comparison rate3 of 7.62% p.a., effective 16 June 2023
The Five Year Fixed Rate home loan, reduced by 0.40% p.a. to 6.29% p.a. within package, with a comparison rate3 of 7.51% p.a., effective 16 June 2023
Things you should know:
Media releases are prepared without considering an individual reader’s objectives, financial situation or needs. Readers should consider the appropriateness to their circumstances. Visit Important Information to access Product Disclosure Statements or Terms and Conditions which are currently available electronically for products of the Commonwealth Bank Group, along with the relevant Financial Services Guide. Target Market Determinations are available here. Loan applications are subject to credit approval. Interest rates are correct at the time they are published and are subject to change. Fees and charges may apply.
Our savings and home loan rate changes will become effective, as typical, within one week of each other.
1 Any customer opening their first NetBank Saver from today will receive a variable introductory interest rate for the first 5 months after account opening. The variable introductory rate is currently 4.50% p.a. (increasing to 4.75% p.a. from 16 June 2023), which includes a fixed bonus margin currently at 2.55% p.a. and the NetBank Saver standard variable interest rate, currently 1.95% p.a. (increasing to 2.20% p.a. from 16 June 2023). At the end of the introductory rate period, the NetBank Saver standard variable interest rate applicable at that time will apply. This introductory rate offer is available for a limited time only and the Bank reserves the right to terminate this offer at any time. The variable introductory interest rate will not apply to NetBank Saver accounts which are jointly owned where one of the account holders has previously held a NetBank Saver account.
2 The Term Deposit special offer is available to personal and SMSF customers. The offer is not available to all other Business customers (including Financial Institutions). It is available on balances from $5,000 to $1,999,999 with interest paid annually. CBA’s Term Deposits, rates and eligibility criteria are available here.
3 Comparison rate calculated on a $150,000 secured loan over a 25-year term. WARNING: Comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Comparison rates are inclusive of the 0.25% p.a. variable rate increase which will be effective 16 June 2023.
