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The Reserve Bank of Australia (RBA) increased the cash rate by 25bps to October, bringing it to 2.60%, the highest since 2013.

Here’s how the big four banks reacted:

NAB

NAB was the first of the four major banks to announce a hike, passing on the full rate 25bps hike on its borrowers.

Starting 14 October 2022, NAB’s variable rates will increase by 25bps.

The bank is currently reviewing if it will apply the same change to its savings rate. In September, NAB increased its savings rates by 50bps and term deposit rates by up to 85bps.

NAB group executive for personal banking Rachel Slade said the bank will be open to discuss the impact of the rate changes on the finances of its clients.

“If you are worried about the impact of increasing interest rates, you have our full support — our home loan specialists can help with a financial health check to make sure you’re on the best rate for your situation and our NAB Assist team is on standby for those who need additional help,” she said.

“The best first step is a conversation with us so we can find the best way to look after you – the earlier the better.”

How to contact NAB: Through the NAB app, or by calling 13 78 79.

Westpac

Westpac was the second major bank to respond — it will increase its variable home loan rates by 25bps effective 18 October for new and existing customers.

It will also increase its deposit rates starting 18 October. The changes are as follows:

  • Westpac Life total variable rate with bonus interest will increase to 2.6% p.a.
  • Under Westpac’s Spend&Save offer for 18-29 year olds, eligible customers can earn a total variable rate of 3.75% p.a.
  • Westpac eSaver total variable rate will increase to 2.55% p.a. for new customers for the first five months.

Westpac chief executive for consumer and business banking Chris de Bruin said majority of Westpac borrowers remain in good shape despite the recent rate increases, with more than two thirds still ahead of their mortgage payments.

“We’re continuing to monitor the situation and bolster our customer support teams so we can help customers navigate the evolving rate cycle,” he said.

How to contact Westpac: Call Westpac Customer Care on 132 032 or contact Westpac Customer Assist for personalised support on 1800 067 497

ANZ

ANZ will increase its variable home loan rates by 25bps starting 14 October.

The bank will also increase the rate of its ANZ Plus Save - accounts with balances less than $250,000 will have an interest rate of 3.25% p.a., effective 12 October 2022. Other savings rates are currently under review.

How to contact ANZ: Contact the local ANZ Mobile Lender, log on to anz.com, or call 13 13 14.

CommBank

CommBank will be passing on the full 25bps hike to its home loan and deposit customers, effective 14 October. 

CommBank's variable rates will increase by 25bps points while the following changes will take effect on its deposit offerings:

  • NetBank Saver standard variable interest rate will increase to 1.10% p.a. The 5-month introductory variable rate will increase by 70bps p.a. to 3.00% p.a.
  • GoalSaver with bonus interest rate will increase by 30bps p.a. to 2.40% p.a.
  • Youthsaver with bonus interest rate will increase by 30bps p.a. to 2.60% p.a.

Meanwhile, CommBank will also be increasing a number of term deposit interest rates, including its 12-month term deposit by 135bps to 3.35% p.a.

CommBank's 18-month term deposit special will bear a rate of 3.70% p.a.

The changes to term deposit rates will be effective starting 10 October.

How to contact CommBank: Through the CommBank app or call 13 2224

Check out how other lenders reacted to the RBA rate hike. 

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