UPDATE: The Reserve Bank of Australia increased the official cash rate on 5 July 2022 to 1.35%. The Mutual Bank's deposit and lending interest rates are under review.

Following the Reserve Bank of Australia’s (RBA) recent increases to the official cash rate, The Mutual Bank has changed deposit and lending interest rates.

The RBA increased the official cash rate on 3 May by 0.25% to 0.35% and on 7 June by 0.50% to 0.85%.

“The Mutual Bank’s interest rates are regularly reviewed to ensure we remain both competitive and sustainable,” said CEO Geoff Seccombe.

“We seek to balance the needs of both our depositor and borrower members.”

The Mutual Bank has increased its term deposit rates substantially to take a lead in the Hunter Region, increasing interest rates up to 145 basis points.

For members with $100,000 invested for 12 months or more the funds will now attract an interest rate of 2.50% compared to the previous 1.05%. Members who invest $100,000 for 12 months or more in this example will now earn $1,450 in additional interest per annum.

“This is welcome news for our depositing members who have felt the burden of the low interest rate environment over the past decade,” said Geoff.

Geoff said investors can be reassured that their investments are in safe hands with The Mutual Bank.

“As an authorised deposit taking institution (ADI), deposits with The Mutual Bank are protected by the Australian Government’s Financial Claims Scheme,” he said.

“This government-backed safety net for deposits of up to $250,000 per account holder per ADI ensures their deposits are securely protected.

The Mutual Bank delayed passing on the cash rate increase to borrowers.

Following the May RBA announcement, The Mutual Bank increased owner occupied and residential investment home loan rates on 1 June and notified members in writing of their new repayments.

After the June RBA announcement, The Mutual Bank increased owner occupied, residential investment, and business loans effective 1 July.

There will be no change to members’ repayments for the 1 July increase.

“We anticipate that the Reserve Bank will increase interest rates regularly and have resolved to only amend our members’ repayments every second month,” said Geoff.

“We understand some members may be concerned about the future and we encourage anyone who may be experiencing financial hardship to contact us to discuss the options available to them.”

“As always, please do not hesitate to get in touch with your Banking Manager or our Member Service team in branch or via phone on 1300 688 825 if you need more information.”

Our branches are open Monday to Friday between 9am and 5pm and Saturday from 9am until 12pm.

For your convenience we operate an afterhours call back service where you can leave a message and your call will be returned within the hour – Monday to Friday from 6pm to 8pm, Saturday from 1pm to 5pm and Sundays and most public holidays from 9am until 5pm. Call 1300 688 825.