Westpac has announced interest rate changes for home loan and deposit customers following the Reserve Bank of Australia's decision to increase the cash rate by 0.25%.
For deposit customers:
- Westpac Life standard variable rate will increase by 0.25% p.a. bringing the total variable rate with bonus interest to 4.25% p.a., effective 17 March.
- Westpac eSaver standard variable rate will increase by 0.25% p.a., effective 17 March. This will bring the total variable rate to 4.25% p.a. for new eSaver customers for the first five months.
- This is in addition to a current 12-month Term Deposit offer of up to 4.35% p.a. available for Westpac customers who open or renew online^.
For home loan customers:
- Home loan variable interest rates will increase by 0.25% p.a. for new and existing customers, effective 21 March.
"To help savers reach their goals we're increasing the interest rates on our popular Westpac Life and eSaver accounts," said Chris de Bruin, Westpac Chief Executive of Consumer and Business Banking.
"For home loan customers we understand after a number of successive interest rate rises some people are starting to cut back their spending to help balance the budget. We also realise there is a degree of uncertainty in the economic outlook and that is causing concern.
"To help customers manage their budgets we offer a range of tools in the Westpac app to track spending and break down expenses. We also encourage customers to use our mortgage calculator to understand the impact of rising interest rates on their repayments.
"While the majority of our customers are in a good position to absorb the impact of rising interest rates, we recognise cost of living pressures are challenging. We stand ready to support customers requesting hardship assistance at this time."
Westpac considers a range of factors when reviewing interest rates balancing the needs of both borrowers and savers. This includes the cash rate, returns and market environment.
Support for customers
Westpac's repayment calculator is available to help home loan customers manage interest rate changes. Helpful tips and information are also available on the Master Your Money webpage.
