KEY POINTS:

• BCU is passing on rate increases, including:
  • an average of 0.27% p.a across term deposit portfolio
  • up to 0.15% p.a across the savings portfolio and
  • between 0.15% p.a to 0.25% p.a for mortgages.
• Highly competitive rates remain on offer for variable, fixed, owner-occupier and investor loans – for new and existing borrowers.
• The increases strike a balance between the needs of both borrowers and depositors.

BCU will increase its term deposit rates by an average of 0.27% p.a., savings account interest rates by up to 0.15% p.a and will pass on lending rate increases of 0.15% p.a to its most popular owner occupied variable rate home lending products, following the Reserve Bank of Australia's (RBA) official cash rate change announced on Tuesday 3 May 2022.

In announcing the rate changes, P&N Group CEO Andrew Hadley confirmed that as a customer-owned bank, the Group is committed to providing value to all of its customers.

"With this commitment in mind, and in balancing the needs of both our borrowers and depositors, we will be passing on rate changes that will benefit the greatest number of our customers across our entire suite of both savings and lending products."

"We acknowledge that the low RBA cash rate and cost of funding environment has particularly impacted our depositors and this change will likely be a welcome one for them," he said.

BCU Acting General Manager, Brendon Comrie, confirmed that BCU would be moving quickly to pass on rate increases to deposit holders, with increases to lending rates being applied more gradually.

"BCU will be offering improved interest rates across several deposit products as early as this week, with interest rate increases up to 0.15% p.a for savings accounts and an average of 0.27% p.a. for term deposits."

"In addition, we have sought to minimise increases for borrowers. While we have increased certain home loan rates by 0.25% p.a this has not been a blanket approach. For example, our most popular variable home loan product (for sub 80% LVR) will only have its rate increased by 0.15% p.a."

"BCU continues to offer highly competitive rates, including for variable, fixed, owner-occupier and investor loans, for both new and existing borrowers."

"The BCU lending team can help by undertaking a full lending assessment for existing and new customers and can be contacted on 1300 228 228."