One bank raised their interest rates today… [shock!] 33



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Australia’s largest bank has responded to the rate cut in a way that has surprised many, by raising rates on term deposits, and not by a small amount.  It’s great news for retirees seeking higher than expected rates on their cash, and perhaps signals a change in attitude to the older generation and their money.  Will the other banks follow suit?
The Commonwealth Bank has decided and announced two big moves today.  Firstly, they have decided to only pass on part of the Tuesday rate cut, of just 0.20% to home loan customers, taking their standard variable rate to 5.45% after the Reserve Bank cut of 0.25%.  And secondly, they have decided to raise interest rates on their 8 month term deposits by an extraordinary 0.55%, taking the interest rate to 3.05% and lifted the interest rate marginally on their bonus savings accounts by 0.05%.

Governor Glenn Stevens said that the Reserve Bank Interest Rate was cut chiefly due to weakness in business capital expenditure in both the mining and non-mining sector but many are optimistic that this will be the last cut.
“Provided that the federal budget rebuilds confidence, provided that the domestic economy continues to lift and provided that the global economy brightens, then the Reserve Bank shouldn’t need to do more this cycle in stimulating the economy,” Commsec Chief Economist Craig James said.

CBA’s group executive for retail banking, Matt Comyn, said to Fairfax Media the bank had considered the needs of deposit customers as well as borrowers in its decision.  “Lifting the rates for our deposit customers at a time when the cash rate is decreasing recognises the importance of savings income, particularly for retirees and young people.”

It is a contrast to the other of the four banks, ANZ who today announced only that they would pass on the rate cut in full to homeowners.  Westpac and NAB had at the time of writing not yet announced their rates position.

Do you think we’ll start to see other institutions move against the interest rate trend in an effort to shift the retiree’s dollars through their doors as the battle for the silver and superannuation dollar heats up?


Rebecca Wilson

Rebecca Wilson is the founder and publisher of Starts at Sixty. The daughter of two baby boomers, she has built the online community for over 60s by listening carefully to the issues and seeking out answers, insights and information for over 60s throughout Australia. Rebecca is an experienced marketer, a trained journalist and has a degree in politics. A mother of 3, she passionately facilitates and leads our over 60s community, bringing the community opinions, needs and interests to the fore and making Starts at Sixty a fun place to be.

  1. This govt won’t do us any favors (retires) so don’t get excited !!!

    1 REPLY
    • More than Labor will, Labor want all to be on the breadline so they can say they supplied everyone with a pension.

  2. I think that the CB has picked up on the ‘iffie’s’ that the Reserve bank has, the economy is not responding like they have expected with all of the interest rate cuts made thus far, it cannot go much lower than it has or the country’s economy will crash. Interest rates have to start rising again in the near future or there will be a lot more problems in our economy

  3. Well Done CB!! About time someone saw sense! Just the BEST way to attract customers! The population is made up of one hell of a lot of baby boomers who are getting very fed up with low interest rates. I am sick of cutting back and cutting back again and again!

  4. We do need a better return on our money or us oldies will grind to a halt. No shopping, no holidays, We already practice economies and reduced our budget not a lot more we can do.

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