Following the Reserve Bank of Australia's (RBA) decision to raise the official cash rate by 0.25% per annum (p.a.), CBA will lift its home loan variable interest rates by 0.25% p.a., effective 14 October.
In addition, the bank will increase the interest rates across a number of its savings products.
New savings rates
- NetBank Saver standard variable interest rate will increase by 0.25% p.a. to 1.10% p.a. The 5-month introductory variable rate will increase by 0.70% p.a. to 3.00% p.a., effective 14 October.
- GoalSaver with bonus interest rate will increase by 0.30% p.a. to 2.40% p.a., effective 14 October.
- Youthsaver with bonus interest rate will increase by 0.30% p.a. to 2.60% p.a., effective 14 October.
To further support savers, CBA will increase a number of Term Deposit interest rates, including its 12-month Term Deposit by 1.35% to 3.35% p.a. The bank will also increase its 18-month Term Deposit special to 3.70% p.a.These Term Deposit rates1 will be effective 10 October.
Group Executive, Retail Banking, Angus Sullivan said: "We are committed to helping our customers navigate the current environment, including through further increases to the interest rates across a number of our deposit products such as increasing our 18 month Term Deposit special to 3.70% p.a."
Mr Sullivan said while it is clear customers are feeling the impact of rising cost of living and the impact of higher interest rates on their home loan repayments, they are taking a proactive approach to managing their finances, utilising the bank's array of budgeting tools and features in the app, including spend tracker and Money Plan.
"We are seeing more and more customers taking advantage of the tools available to manage their finances in the face of rising living costs. This includes a 10 per cent increase in the number of customers taking advantage of offset accounts, which can help reduce the cost of mortgage repayments. Customers are also aligning timing of their mortgage payments with when their salary is paid, helping them to better budget their money."
"Further, last month we started piloting our new Fuel Finder feature in the CommBank app to 250,000 New South Wales residents. This feature utilises our AI technology to nudge customers about the cheapest fuel locations at a time that aligns with when they might need to refuel based on their previous fuel spending patterns."
CommBank has a number of tools and features to help customers navigate the current environment. People who have questions following today's interest rate decision or want to discuss their financial situation can message at any time in the CommBank app.
Eight customer tools and tips
- You can 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.
- 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.
- 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.
- You can estimate how much your home loan repayments may increase via the home loan repayments calculator.
- Make the most of an offset account. An offset account is a transaction account linked to a standard variable 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.
- Eligible customers can align their home loan repayments to when and how often they are paid via the Home Loan repayment change tool. Emerging research suggests that seemingly small changes, like aligning your home loan repayment day with your pay day, can make it easier to manage your finances.
- You could also consider how taking out a fixed rate home loan could give you greater certainty around your regular mortgage repayments.
- You can also save on your everyday spending by checking Rewards in the CommBank app.
Where you can access help
- If you are concerned about your financial situation, message us at any time in the CommBank app and we will connect you with our Financial Assistance Solutions Team.
- We also encourage you to speak with us about how we can support you via our extensive network of lending specialists.
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